Vietnam
GIMO, a Vietnam-based startup providing flexible pay and financial well-being solutions for underbanked workers, announces the completion of Series A funding round with total capital raise of up to US$17.1 million.
The final closing, comprised of a mixture of equity and debt financing, came only five months after the company secured US$5.1 million in the first close. The round is led by TNB Aura, with participation from the company’s existing backers including Integra Partners, Resolution Ventures, Blauwpark Partners, ThinkZone Ventures, and Y Combinator. New investors joining this round are global corporate ventures such as Genting Ventures, TKG Taekwang, George Kent and Asia-focused private credit financier, AlteriQ Global.
Charles Wong, Founding Partner of TNB Aura shared, “We look forward to working closely with the GIMO team in breaking down barriers to financial inclusion for millions of blue-collar workers across Vietnam. Especially in challenging macroeconomic times such as these, GIMO’s mission to empower workers to “Live Better. Work Happier” is even more critical.”
GIMO currently serves 500,000 workers from medium to large-sized multi-national manufacturing companies across Vietnam. Despite economic slowdown in 2023, the company demonstrates a solid growth rate of 15% and is on track to reach 2.5 million underbanked employees by 2025.
“We believe that the Vietnam market is ripe for the adoption of Earned Wage Access, which will drive financial inclusion and stability for the underserved. At AlteriQ, we consistently strive to forge partnerships with top-tier business operators across industries and geographies. Our decision to support GIMO marks our debut into Vietnam, and we are excited to work with Quan and his team to scale their operations and create a positive impact on the financial well-being of the underserved communities,” commented Zhi Yong Heng, Managing Partner of AlteriQ Global.
The investment will be utilized to fast-track the company’s expansion plans and drive innovation across its product portfolio, including:
- Product development: GIMO will allocate a significant portion of the funds to bolster its research and development efforts. This investment will accelerate GIMO’s product development, introducing more social impact initiatives, helping the underbanked workers to avoid debt traps and loan sharks while improving their financial well-being.
- Customer Success: GIMO remains committed to providing unparalleled customer experiences. A portion of the investment will be dedicated to enhancing customer success and support initiatives, ensuring that users receive the best-in-class services from GIMO.
- Strategic partnerships: GIMO will leverage the funding to forge strategic alliances with key partners and industry leaders. These partnerships will foster collaboration, create synergies, and launch new social impact initiatives.
“We are thrilled to announce the successful closing of our Series A funding round, which demonstrates the unwavering confidence and support we have received from investors”, said co-founder and CEO Quan Nguyen. “This significant investment will enable us to drive our vision forward, fuel innovation and continue to serve the underserved communities in which we live and operate.”
According to the KPMG’s research in 2022, an average user draws down their earned pay two to three times per month, almost simulating bi-weekly and weekly pay. The use cases for on-demand pay are also wide-ranging. A flexible pay cycle takes the burden off blue-collar workers’ shoulders by helping them pay for not only financial emergencies but everyday bills./.
