FINANCIAL services distribution network MFast has concluded a US$6 million Series A funding round led by Wavemaker Partners, an early-stage venture capital firm headquartered in Los Angeles and Singapore.

MFast, a brand under Vietnam-based startup DigiPay, on Tuesday (Aug 29) said new investors are Tokyo-headquartered Headline Asia, and Finnoventure Fund I.

Finnoventure Fund I is managed by Thai venture capital firm Krungsri Finnovate, also known as the corporate venture arm of Thailand’s fifth-largest financial group Bank of Ayudhya (Krungsri). 

Krungsri Finnovate’s managing director Sam Tanskul said that with the latest investment, MFast will also be strengthening its relationship with Krungsri’s consumer finance business in Vietnam, SHB Finance.

Existing investors Do Ventures, Jafco Asia and Ascend Vietnam Ventures also participated in the round.

MFast intends to utilise its fresh funding to expand its operations and “unlock the potential of nationwide distribution” with its plan to expand the company’s presence beyond Vietnam by 2024.

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“Our next big steps include fostering collaboration to design exclusive financial products for each and every customer segment, as well as gearing up for expansion to the Philippines in 2024,” said its chief executive Phan Thanh Long.

The company was launched in 2017 by Long and his twin brother Phan Thanh Vinh, who have since expanded the company to all 63 cities across Vietnam with 160,000 active agents.

Its platform provides a marketplace and sales channel in the finance and insurance field.

Highlighting an “imbalance” in access to goods and financial services among the Vietnamese population, MFast believes residents in Tier 2 cities face “challenges in accessing high-quality financial services and purchasing high-ticket items at competitive prices with financing options”.

This is because financial institutions and brands are not incentivised to invest in physical retail branches in such cities, according to MFast.

The company said it has introduced financial services packages to more than a million people in Vietnam as at August 2023, with a 62 per cent increase in its number of earning users over the first half of 2023 compared with the previous corresponding year. 

This significant surge underscores the platform’s appeal and effectiveness in connecting users with valuable financial services, it added.

The company also counts Singapore’s UOB and Thailand’s Kasikorn Bank among the international and local financial institutions it has fostered strong partnerships with.

Said Phuong Tran, principal at Wavemaker Partners: “MFast aims to broaden its reach by distributing impactful, high-value products to Tier 2 and Tier 3 customers, while bolstering agents’ income potential.

“Given the challenges posed by post-deflationary measures on the Vietnam economy, MFast’s timely and essential solution benefits all stakeholders involved: brands, agents and customers.”