InfinA Secures $2M Seed Funding - Vietnamese Investment App

Growing Investment App Interest in Southeast Asia

The recent global pandemic has significantly increased public interest in savings and investment applications, particularly those designed for individuals new to the investment landscape. Several startups in Southeast Asia focusing on this sector have successfully secured funding in recent months, including Ajaib, Bibit, and Stashaway – representing only a portion of the activity.

Infina, positioning itself as the “Robinhood of Vietnam,” has now announced the completion of an oversubscribed seed funding round totaling $2 million. This funding was secured in two tranches.

Seed Funding Details

The seed funding round saw participation from prominent investors such as Saison Capital, Venturra Discovery, 1982 Ventures, 500 Startups, Nextrans, and various angel investors, including executives from Google and Netflix.

Infina initially launched its application in January 2021. The majority of its user base falls within the 25 to 40 age range and is actively seeking investment options beyond traditional long-term assets like real estate.

A minimum investment of approximately $25 USD is required, granting investors access to a diverse selection of assets. These include savings accounts, term deposits, fractionalized real estate, and mutual funds – the latter currently being the most favored asset class among Infina’s users, according to founder and CEO James Vuong.

Infina collaborates with leading financial institutions, including Dragon Capital, ACB Capital, Mirae Asset Fund Management, and Viet Capital Asset Management.

Vietnam's Emerging Investment Market

Currently, only around 3.2% of the Vietnamese population actively participates in the stock market. However, data from the Vietnam Securities Depository reveals that approximately 500,000 new trading accounts were opened during the first five months of 2021, marking a 20% increase compared to the entirety of 2020.

Combined with Vietnam’s high internet penetration rate – around 70% as of January 2020 – and the fact that over three-quarters of internet users have prior experience with online financial services, these factors create a favorable environment for the growth of applications like Infina.

Investor Perspective

Chris Sirise, a partner at Saison Capital, commented on their investment, stating, “Retail investing in Vietnam is reaching a pivotal moment, mirroring the growth observed in numerous other emerging markets. Infina, with its dedicated team focused on financial literacy and education, is ideally positioned to capitalize on this expanding market.”

Infina's Founding and Vision

Prior to establishing Infina, James Vuong worked as an engineer in Silicon Valley before returning to Vietnam. He then served as the vice president of investment and a Kauffman Fellow at IDG Ventures. He also previously founded Lana Group, which was later acquired by Line Group.

Vuong believes Vietnam is on the cusp of a “golden decade” of sustained growth, comparable to that experienced by other Asian economies. He created Infina to empower individual investors to participate in Vietnam’s economic progress.

Impact of the Pandemic and Economic Factors

Vuong observed that during periods of lockdown in Vietnam, many internet users transitioned to digital services, including those related to investments. Furthermore, a series of interest rate reductions implemented by Vietnam’s Central Bank to support businesses during the COVID-19 pandemic prompted many retail investors to seek alternative investment options offering higher returns than traditional term deposits.

Targeting New Investors

“The majority of our users are first-time investors,” Vuong explained. “While they are accustomed to saving, investments in fixed income or mutual funds are relatively new concepts for them.” The application’s design and content are specifically tailored to cater to this demographic.

Risk Assessment and Educational Resources

Upon registration, Infina assesses each user’s risk tolerance and investment goals, then recommends a suitable asset to begin with. As users continue investing, they are provided with detailed information regarding the risk and return profiles of each asset category, along with insights into the issuer’s profile, investment strategy, and historical performance.

Similar to other investment platforms catering to novice investors, Infina also develops its own educational materials, including blog posts, daily newsletters, and video content.

Transparency and Future Development

“We prioritize transparency in communicating risk, returns, profits, and fees, and this is a key differentiator for us,” Vuong stated. He added that a portion of the new funding will be allocated to expanding the team with technical and investment professionals. This expansion will focus on enhancing Infina’s KYC (know your customer) system to more accurately assess risk appetite and refining the asset evaluation process.

Competitive Landscape

Other investment applications operating in Vietnam include Finhay and Tikop. When asked about Infina’s competitive advantages, Vuong highlighted its diverse range of asset classes, low minimum investment requirements, and transparent approach to investment information.

He also emphasized that Infina is not majority-owned or affiliated with any specific issuer, “allowing us to maintain neutrality and collaborate with all of the country’s leading fund managers.”