E-wallet MoMo buys stake in securities firm

The deal was struck Thursday and Online Mobile Services JSC, or M Service, has received more than 4.4 shares from two shareholders of CVS – its vice chairman Jiang Wen and general director Nguyen Kim Hau – the securities firm said in a statement sent to the State Securities Commission of Vietnam (SCC).

Established in 2009, CVS was first known as Hong Bang Securities JSC and renamed Hung Thinh Securities in 2015. The company also moved its headquarters from Ho Chi Minh City to Hanoi.

Its annual revenue was VND4.4 billion ($190,000) and VND4.8 billion in 2020 and 2021 respectively. As of the first quarter of 2022, CVS had recorded a cumulative loss of more than VND80 billion.

The new deal makes M_Service the second fintech firm to invest in a securities company after Finhay, who bought shares in Vina Securities early this week.

Both Momo and Finhay are invested in by Thien Viet Securities (TVS). As of March 31, TVS recorded the original cost of investment in M_Service at VND27.8 billion and nearly VND62.5 billion at Finhay.

Momo had 31 million users and 140,000 payment acceptance points last year. The wallet is now a partner of more than 50 banks, and financial and insurance companies.

The e-wallet has completed a $200-million Series E funding round funded by a consortium of investors led by Japan’s Mizuho Bank. Investment funds Ward Ferry, Goodwater Capital and Kora Management make up the rest of the consortium.

A media representative said he could not announce a specific figure, but MoMo’s valuation exceeds $2 billion, making it a startup unicorn.