Two Hanoi-based FinTech startups, Vimo Technology and mPOS Technology, are merging to create NextPay Holdings, according to reports.
The CEO of mPOS Technology, Nguyen Huu Tuat, will become CEO of the new company. Nguyen Hoa Binh, who founded both companies, will be the new chairman. The CEO of Vimo, Do Cong Dien, will become COO of NextPay.
The move will help the new company raise money and scale operations, and will help both startups to become stronger in Vietnam’s growing cashless market, with the intention of becoming an all-encompassing stop for merchant solutions.
NextPay is in conversation with five different investors and will potentially raise in the neighborhood of $30 million in a round that should close in July or August.
“We want to take advantage of both companies to promote the development of payment products. We consolidate strategy, shareholders and the business team of 500 people,” said Tuat. “By merging these two businesses, we provide a one-stop payment solution for merchants.’’
The raised capital will be used to grow the company’s merchant network and to aid in moving into new countries like Myanmar and Indonesia next year. There is lots of competition in the space in Vietnam, from companies like MoMo, Moca, Viettel Pay, Zalo Pay, AirPay and ePay.
There have been some other mergers and acquisitions as well. VinID Joint Stock Company, which is 80 percent owned by Vingroup, recently acquired ewallet company MonPay. NextPay’s main focus is on offline payments.
Vietnam is particularly suited for the proliferation of contactless payment and other digital payment startups, as about 70 percent of the population uses smartphones. Also, the country’s government wants to promote digital payments as a way to reduce the use of (and need for) U.S. dollars and to reestablish the dominance of Vietnamese currency.