Nano Raises $3M Seed Round - Vietnamese Fintech Startup

Nano Technologies Secures $3 Million Seed Funding for Earned Wage Access in Vietnam

Nano Technologies, a pioneering startup, is revolutionizing financial access for Vietnamese workers. Through its innovative application, VUI, employees can now immediately access wages they have earned.

Investment Details

The company has successfully raised $3 million in seed funding in an oversubscribed round. This investment was spearheaded by existing investors Golden Gate Ventures and Venturra Discovery.

Additional participation came from FEBE Ventures, Openspace Ventures, and Goodwater Capital, demonstrating strong confidence in Nano Technologies’ potential.

Company Background and Leadership

Nano Technologies recently completed the prestigious Y Combinator accelerator program. Both Golden Gate Ventures and Venturra Discovery had previously invested during the startup’s pre-seed stage.

The company was established in early 2020. It was founded by Dzung Dang, formerly a general manager at Uber and CEO of ZaloPay, and Thang Nguyen, previously the chief technology officer at Focal Labs and SeeSpace.

VUI’s Rapid Adoption and Usage

Launched just six months ago, VUI is already serving over 20,000 employees. Its client base includes prominent companies such as GS25, LanChi Mart, and Annam Gourmet.

Nano Technologies reports that between 50% and 60% of employees enroll in VUI when offered by their employers. Users typically utilize the service approximately three times each month to access their earned income.

Target Industries and Addressing Workforce Challenges

Nano’s earned wage access features are adaptable for businesses of any size and across various industries. Currently, the company is concentrating its efforts on the retail, food and beverage, and manufacturing sectors.

Specifically, the startup is targeting industries like textiles, garments, and footwear. These sectors are experiencing increased recruitment expenses and declining employee retention rates.

A contributing factor to these challenges is the growing preference for gig economy opportunities, where earnings are promptly deposited into digital wallets or bank accounts.

How Earned Wage Access Works

Typically, Nano provides the initial wage advances. Repayment is then facilitated through payroll deductions on the employer’s scheduled payday.

Employers with sufficient financial resources can also directly fund wage advances from their own accounts. VUI is generally presented as an employee benefit, with employers having the option to cover associated fees, have employees pay them, or implement a co-pay arrangement.

The Growing Earned Wage Access Landscape

Nano Technologies is part of a global trend of companies offering earned wage access. This aims to improve employee retention by providing flexible access to earnings, rather than adhering to traditional payday schedules.

In Southeast Asia, GajiGesa in Indonesia is another key player in this space. Globally, similar services are offered by companies like Square, Wagestream (London-based), and Gusto.

Future Plans

Nano’s immediate focus remains on expanding its presence within Vietnam. The company also intends to develop additional tools for employers, focusing on staff management and engagement.

Positive Employer Feedback

Chi Phan, CEO of LanChi Mart (a subsidiary of Central Retail with around 2,000 employees), stated: “On-demand salary via VUI is a logical and effective HR initiative that the LanChi team is pleased to offer our employees as a new voluntary benefit.”

She further added, “VUI provides a vital financial resource to our employees, boosting morale during the COVID-19 pandemic and reducing employee turnover following Tet.”