Vietnam-based GIMO has raised US$12 million in Series A funding for its pay and financial well-being solutions for underbanked workers, the company has announced.
The investment, which comprised of a mixture of equity and debt financing, comes only five months after the company secured US$5.1 million in the first close. The total capital raise of up to US$17.1 million will be used to fast-track the company’s expansion plans and drive innovation across its product portfolio, the company said.
The social impact fintech startup currently serves approximately 500,000 workers from medium to large-sized multi-national manufacturing companies across Vietnam through its on-demand pay services. The mobile-enabled feature allows workers get instant access to their earned wages upon request.
According to research from KPMG in 2022, an average user draws down their earned pay two to three times per month, almost simulating bi-weekly and weekly pay. A flexible pay cycle is a seen as a way to take the burden off blue-collar workers’ shoulders by helping them pay for not only financial emergencies but everyday bills.
Helping the underbanked
GIMO added that it plans to allocate a significant portion of the funds to bolster research and development for improved product development.
A portion of the investment will be dedicated to enhancing customer support initiatives while GIMO will leverage the funds to forge strategic alliances with key partners and industry leaders. A key goal of the company is to help underbanked workers to avoid debt traps whilst improving their financial well-being. To help achieve this, it is planning to introduce more 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 on the announcement.
“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,” he added.
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 was 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 include global corporate ventures such as Genting Ventures, TKG Taekwang, George Kent and Asia-focused private credit financier, AlteriQ Global.