The Tracxn Geo Annual Report: Vietnam FinTech 2023, based on our extensive database, provides a round-up of funding and other major developments in Vietnam’s FinTech space.
The Vietnam FinTech ecosystem is the third highest-funded startup ecosystem in the FinTech space in SEA region in terms of overall funding till date.
The FinTech sector in Vietnam secured funding worth $35.3 million in 2023 with only eight funding rounds, the least funded year since 2021. The sector saw a massive decline of 84% in funding in 2023, compared with $227 million raised in 2022.
The funding slowdown can be attributed to the absence of late-stage funding rounds. No late-stage rounds were recorded in 2022 and 2023, as against $300 million in 2021. Early-stage funding stood at $33.1 million in 2023, a plunge of 84% from $207 million raised in 2022. Companies in this space attracted seed-stage investments worth $2.2 million in funding, a decrease of 89% compared with the $20.7 million raised in 2022.
No $100M+ rounds were observed in this space in 2023, as against one such round in 2022. Further, no new Unicorms emerged from the Vietnam Fintech sector in 2023.
Alternative Lending, Banking Tech, and Insurance IT were the top-performing segments in this space in 2023. Companies in the Alternative Lending space witnessed a total funding of $17.1 million in 2023, a 50% growth from $11.4 million raised in 2022. The Banking Tech segment secured funding worth $10 million, which is a significant 50% drop from $20 million raised in 2022. Funding in the Insurance IT space stood at $6 million in 2023, compared with $2.5 million funding in 2022.
Infinity Capital, X21 Digital and Avstar are the most active investors in this space till date. Y Combinator, Resolution Ventures, and ThinkZone were the top investors in seed-stage rounds in 2023, while Peak XV Partners, JAFCO Asia, and Patamar Capital were the most active early-stage investors.
The Vietnam FinTech market is expected to grow at a higher rate in the coming years. Its growing tech-savvy young population and digitalization are expected to accelerate growth in this region.
The Vietnam government has also supported development in this sector. The government has launched the National Strategy on Digital Transformation which aims to increase the Digital economy share in the GDP to 20% by 2025. The State Bank of Vietnam is developing a Sandbox environment where FinTech startups can test their novel products and it helps the govt to learn risks associated with new business models and thereby develop regulations that will motivate innovation.
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