MoMo valued at $2 billion in fundraiser led by Mizuho Bank

Rick Steves

Earlier this year, MoMo raised more than $100 million, but has no plans for an initial public offering over the next several years.

Mizuho Bank has acquired a 7.5% stake in M-Service, the digital payment company based in the Socialist Republic of Vietnam that operates the MoMo brand.

M-Service is the market leader in Vietnam, with a share of over 50% of Vietnam’s mobile payment market. The investment has reviewed the firm’s value to $2 billion.

M-Service can leverage Mizuho’s payments technology

Mizuho is on a quest to expand its financial services from Japan to the rest of Asia, as well as the rest of the world. By acquiring a 7.5% stake in the largest payments company in Vietnam effectively puts the bank in a top position to enter the emerging market.

Asia, particularly the Association of Southeast Asian Nations (ASEAN) region, is projected to see economic growth accompanying its population growth.

The financial infrastructure of the region, however, is still in a stage of development, and financial inclusion has become a social issue. This comes as an opportunity for Mizuho, which already carries a sophisticated infrastructure that can be handed over to M-Service in order to accelerate the modernization of the Vietnamese financial industry.

“We have explored strategic investment in the region’s businesses with the goals of contributing to financial inclusion through new, digital technology-focused financial services and of expanding our business portfolio”, Mizuho said in a statement.

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Series E funding raises $200 million on $2 billion valuation

M-Service has raised $200 million from the Series E funding round led by Mizuho Bank, with the participation of Ward Ferry Management and existing shareholders Goodwater Capital LLC and Kora Management.

Earlier this year, MoMo raised more than $100 million, but has no plans for an initial public offering over the next several years. M-Service was founded in 2007 as a payment service business for mobile phone charges and it has since transformed into a full digital payment business.

Having built the largest business base within Vietnam’s payment market, M-Service pioneered an expansive affiliated merchant network and a wide range of use cases, securing its position as Vietnam’s leading super-app.

M-Service provides access to many major local financial institutions, including Vietcombank, one of Vietnam’s largest state-owned commercial banks and a recipient of Mizuho’s investment.

“We at Mizuho will provide the experience and expertise that we have accumulated through our business in Japan to assist in the strengthening and development of M-Service’s financial service business. At the same time, we will positively contribute to further advancing Vietnam’s financial inclusion and retail finance industry by expanding our collaboration with M-Service and by enhancing our ongoing cooperation with Vietcombank.”

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