Japanese lender Mizuho Bank has acquired a 7.5% stake in Vietnamese digital payment services company M-Service, which operates MoMo app.
The investment is part of MoMo’s $200m Series E funding round, which was led by Mizuho bank with participation from Ward Ferry, Goodwater Capital, and Kora Management.
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As per media reports, the Ho Chi Minh City-based startup has crossed a $2bn valuation.
MoMo plans to use the funding to develop and strengthen its ‘super-app’ and expand its portfolio of financial services.
It will also use the proceeds to expand its rural presence, invest in technology and mergers and acquisitions.
Through M-Service, which has over 50% market share, Mizuho Bank is looking to expand its presence in the Asian region.
Mizuho Bank seeks to “to become the most trusted financial services group with a global presence and a broad customer base, contributing to the prosperity of Japan, the rest of Asia, and the world as a whole.”
Mizuho Bank’s investment in M-Service follows its investment in Vietcombank, a state-owned commercial bank, in 2011.
The lender said it will assist M-Service in strengthening its financial services business in the country and plans to expand its collaboration with M-Service and Vietcombank to further Vietnam’s retail finance industry.
Notably, Mizuho Bank’s announcement comes after it achieved a target of 9% for its common equity tier 1 ratio, a measure of the firm’s financial position.
Last month, Mizuho Financial Group CEO Tatsufumi Sakai and three other senior executives resigned after the bank was reprimanded by the banking regulator.
