NextPay signals intent to fuel expansion with $100m raise
Vietnamese electronic payments firm NextPay is aiming to raise $100 million via a private placement at the start of 2021.
NextPay is planning to expand into Indonesia and Myanmar
NextPay CEO, Nguyen Huu Tuat, tells DealStreetAsia that his firm is in talks with investors from the US, Japan, and South Korea.
Any funding it raises from the private placement will go towards that expansion of the merchant network and a break into neighbouring markets Indonesia and Myanmar.
Institutional and strategic investors will receive a 20% stake in the business for their support.
NextPay is the result of a merger between wallet provider VIMO and point of sale (POS) firm mPOS. It claims to have more and 70,000 merchant customers and aims to increase the number to 300,000.
The firm had been in talks for a Series B funding round in 2019. Nguyen tells DealStreetAsia that the plans changed “at the last minute”.
Instead the firm looked to an IPO, making it the first and only Vietnamese fintech firm to announce one. It plans to launch on the Ho Chi Minh Stock Exchange in 2022.
According to JP Morgan data, Vietnam’s business to consumer ecommerce market is worth $6.2 billion.
Annual total online spend per person is currently $175.15, while 66 percent of online shoppers having used Facebook to purchase items. $3.3 billion is spent via mobile devices by Vietnamese very year.
