Tracxn, a leading global SaaS-based market intelligence platform, has released its Geo Quarterly Report: FinTech Vietnam - Q3 2023. The report, based on Tracxn’s extensive database, provides insights into the Vietnam FinTech space.
Vietnam’s FinTech startup ecosystem has seen a significant impact of the global funding winter, receiving just $35 million in funding in 2023 YTD, an 84% drop from the same period last year.
In Q3 2023, the FinTech sector in Vietnam secured funding worth $29 million, a massive jump of 2800% from $1.1 million raised in Q2 2023 and a 190% growth from $10.4 million in Q3 2022. No late-stage rounds were observed in Q3 2023. This sector attracted early-stage investments worth $28 million in Q3 2023, a growth of 1300% when compared with $2.5 million raised in Q3 2022. Seed-stage funding in Q3 2023 stood at $1.1 million, similar to Q2 2023 but a fall of 86% from $8 million raised in Q3 2022
Alternative Lending, Banking Tech and Insurance IT were the top-performing segments in the overall Vietnam FinTech sector in the third quarter of 2023. Companies in the Alternative Lending space raised $12 million in Q3 2023, compared with no funding in Q2 2022, and a 100% growth from $6.4 million raised in Q2 2022.
There was no activity in terms of IPOs and Unicorns in Q3 2023. No companies from the Vietnam FinTech space went public in Q3 2023, and no new Unicorns emerged. Further, only one acquisition took place in Q3 2023, as against one in Q2 2023 and none in Q3 2022.
Among the cities, FinTech companies based in Ho Chi Minh raised $17.1 million, while those in Hanoi raised $12 million.
Y Combinator, Thinkzone, and Resolution Ventures were the most active institutional investors in this space in Q3 2023. Y Combinator, Resolution Ventures, and ThinkZone were the top investors in seed-stage rounds in Q3 2023. Peak XV Partners, JAFCO Asia, and Patamar Capital were the top investors in early-stage rounds in this sector.
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