Investments into Vietnamese startups rise

Raising cash: A street vendor walks past an HSBC branch in Hanoi. The bank has supported numerous startups in Vietnam. ―Bloomberg

HANOI: Foreign investment into Vietnamese startups is predicted to increase although the Covid-19 pandemic has left negative impacts on the economy, according to experts.

HSBC Bank Vietnam announced that it has supported General Atlantic and Dragoneer Investment Group in co-leading a US$250mil (RM1.05bil) in Series B funding round in VNLIFE Corp Joint Stock Company, a leading technology company pioneering the development of Vietnam’s digital ecosystem.

This is considered the largest capital raising deal revealed in the venture capital market in Vietnam recently. The injection of capital is expected to accelerate the growth of VNLIFE’s existing businesses and support its development of new platforms and technologies to better serve its merchant partners and Vietnamese consumers.

Similarly, VinaCapital Ventures (V2), the technology investment platform of VinaCapital Group, said it has invested in GlobalCare, an insurtech company that provides solutions for the sale and administrative processes of insurance agencies and business partners selling non-life insurance policies.

Founded in 2017 by Dinh Thi Ngoc Niem and her co-founder, Hang Minh Loi, GlobalCare’s distributors and agencies, including 3,000 distributors to online transaction points and other leading service sharing platforms, provides a variety of insurance products for customers to choose. It also offers a complete technology solution for more than 10 major distribution channels and 200,000 insurance agents.

The terms of the investment were not disclosed but based on GlobalCare’s contributions to the insurance industry and V2’s investment history, the transaction value is expected to reach millions of dollars.

Earlier in August, Loship, a delivery startup in Vietnam, announced that it successfully raised US$12mil (RM50.27mil) in Pre-Series C round, bringing the company’s valuation to over US$100mil (RM418.91mil).

This round of financing was jointly led by venture capital firm BAce Capital backed by Ant Group and investment unit of Sun Hung Kai Co Ltd, an investment company listed in Hong Kong. The money will help Loship increase its presence in five key markets including HCM City, Hanoi, Danang, Can Tho and Bien Hoa.

Don Lam, general director of VinaCapital Group, said that seeing the development trend of the Vietnamese startup community, the group established VinaCapital Ventures to take advantage of its experience to support startups. ― Viet Nam News/ANN

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