Fvndit Closes $30 Million In Financing For eLoan And Seeks To Advance Its Market-Leading Position In Vietnam
Fvndit, Inc., a California- and Vietnam-based fintech company, announced an investment of thirty-million dollars ($30M USD) for debt financing led by Accial Capital, a private debt investor in tech-enabled loan portfolios in emerging markets, and Variant Investments, an innovator in alternative income investing.
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Fvndit, pronounced like “Fund it”, is focused on solving the working capital problem for SMEs by using technology to re-build core parts of the funding infrastructure and make the underwriting and financing seamless for small businesses. Its wholly-owned subsidiary, eLoan, JSC (“eLoan”), operates an online Peer-to-Peer (P2P) funding and investing marketplace in Vietnam, its current local market. Today, SMEs account for more than 41% of Vietnam’s GDP ($261.64 billion – nominal, 2019 est.), and 98% of all enterprises but still remain largely neglected by traditional banks with 70% of them do not have access or have difficulty in accessing credit. eLoan was launched in late 2017 with a clear mission – to make credit more simple and investing more rewarding.
Michael Shum, Chief Investment Officer of Accial Capital, said, “Fvndit’s unique approach to managing credit risk in this segment sets it up well to scale quickly but responsibly, allowing thousands of SMEs to expand their businesses even in the challenging context of COVID-19.”
The committed investment will serve to further solidify and propel eLoan’s business objectives as the market leading SME-focused funding platform in Vietnam.
“Our vision is to provide quick and easy financing for the underserved SMEs that make up the majority of current economic activity and future growth of Vietnam, an attractive up-and-coming market but yet mostly overlooked by traditional capital. We collaborate with financial partners that look to add strategic value to their portfolio by leveraging our local expertise and unique risk management. Low-cost institutional capital allows us to achieve impact at scale for the vast underbanked SME market. We’re extremely excited about the new partnerships.” stated Tan Tran, CEO of Fvndit.
Curt Fintel, Principal and Co-Founder of Variant Investments, added, “We are honored to be a partner with Fvndit in helping solve liquidity challenges for Vietnamese businesses. Their technology platform allows for swift, efficient underwriting of new borrowers who are in need of capital.”
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