ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
DealStreetAsia

Vietnam's NextPay aims to raise $60-$100m in pre-IPO placement

E-payments provider looks to expand overseas such as in Indonesia and Myanmar

In Vietnam, there has been strong competition between e-payments brands such as Momo, ZaloPay, VNPAY, Payoo, ViettelPay and NexPay.   © Reuters

HANOI -- Vietnamese e-payment solutions provider NextPay Holdings is considering a private placement to raise around $60-$100 million in the first quarter of next year, ahead of a planned stock market listing in 2022.

The company is looking to institutional and strategic foreign investors for the private placement and will offer them a 20% stake, Nguyen Huu Tuat, the company's co-founder and CEO, told DealStreetAsia. The company is in talks with five investors from the US, Japan and South Korea, he added.

Proceeds from the private placement will be used to broaden NextPay's merchant network in Vietnam and to expand its presence in overseas markets including Indonesia and Myanmar, Nguyen said.

NextPay is the first, and so far the only, fintech company in Vietnam to announce an initial public offering. It plans to raise as much as $100 million when it debuts on the Ho Chi Minh City Stock Exchange in 2022.

NextPay is the result of a merger between e-wallet service provider VIMO and point-of-sale startup mPOS, both of which were founded in 2014 by the incubator NextTech. The merged entity was formed in June last year and has 1.5 million e-wallet users and more than 35,000 acceptance points across 45 cities.

Last year, NextPay was in talks with five foreign investors to raise about $30 million in a series B funding round. However, the fundraising plan "changed at the last minute" and the company decided to pursue an IPO, Nguyen said.

NextPay was one of the pioneers in developing the mPOS payment network in Vietnam. The company has deployed more than 40,000 of these point-of-sale payment terminals and has become the leading enterprise in helping to develop a network of new merchants. The company aims to serve 300,000 merchants in the country by 2023, from the current 70,000.

Earlier this year, NextPay and Visa signed a memorandum of understanding to promote cashless payments in Vietnam. Visa will provide consultancy on business strategy, technology support and share its practical global experience in implementing and developing e-payments, helping NextPay deploy appropriate plans and strategies for Vietnam.

The e-payment solutions provider is targeting revenue of $33.7 million for 2020, compared with $19.2 million in 2019.

Speaking about the feasibility of NextPay's pre-IPO plan, Christian Konig, founder of Fintech News Network, said that NextPay's e-wallet VIMO had not yet been widely adopted and rivals such as Momo, ZaloPay, VNPAY, Payoo and ViettelPay were offering strong competition. "They certainly have to work hard ahead of their listing to be more transparent and communicate more accurately," Konig said.

However, he said that NextPay's valuation was optimistic. "Covid-19 might accelerate mobile payments in Vietnam, [but] we all know cash is still the main competitor of all those players," he said.

He forecast that Vietnam's e-payment market would see a huge consolidation.

In January last year, Vietnamese e-wallet MoMo carried out a series C funding round led by global private equity firm Warburg Pincus. While financial terms remain undisclosed, a source familiar with the matter said the investment was in the region of $100 million, making this one of the largest single rounds ever raised by a Vietnamese startup.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and Greater China. Nikkei owns a majority stake in the company.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more