Vietnamese e-wallet provider Gpay has received an undisclosed amount in Series A funding from South Korean listed bank KB Financial Group.
The Series A round values the digital payment business at VND425 billion ($18.46 million), and the fresh funds will be used to expand its team and user base, as also upgrade its technology, Gpay said in a statement.
G-Group Technology Corporation, Gpay’s parent, has also joined hands with KB Financial to launch a VND300 billion fintech joint venture, called KB Fina, which will provide financial services to unbanked or underbanked consumers, Gpay said.
G-Group general director Phung Anh Tu said they expect the fintech platform, which incorporates financial and investment advisory products already provided by KB Financial Group in its home country, to come online in the second quarter this year.
Established in 2018, Gpay obtained its e-payment license in April 2020. However, it faces fierce competition in the Vietnamese digital payment market, where there are currently 39 other licensed e-wallet service providers.
Gpay said it will not be “burning cash” to fight for a higher market share, but will serve G-Group’s 30 million users currently using various services on its digital ecosystem, which includes peer-to-peer lending firm Tima, digital media firm Beat.vn, and social networking app Gapo.
Last week, Momo, another payments app in Vietnam, raised an undisclosed amount in Series D financing from U.S.-based investment funds Warburg Princus and Goodwater Capital.