DISCUSSION MATERIALS

Thien Viet Securities – Investment Banking Division

August 2021 Strictly private and confidential

BUY NOW PAY LATER MARKET

Thien Viet Securities – Investment Banking Division

August 2021 Strictly private and confidential

 BREAKING NEWS
pays 31% premium to buy for $29 billion to tap younger users

BNPL concept
It’s particularly
represents a chance “It’s very different popular with
to capitalize on a from the traditional younger
shift away from consumer-financing consumers -- who
traditional credit, business model.” may NOT HAVE a
especially among
credit card.
younger consumers.

Source: Bloomberg “Square to Buy Afterpay for $29 Billion to Tap Younger Users”

3
 BREAKING NEWS
BNPL market becomes exciting…

Square buy Afterpay Kredivo to go pubic via CBA to enter VN with

for $29 bn $2.5 bn SPAC merger FiinGroup

Afterpay’s Presentation Investor Presentation More details about this

Source: Bloomberg, 2021; BusinessTimes News, 2021

4
BUY NOW PAY LATER
INDUSTRY CALL - PRESENTATION
 WHAT IS BUY NOW, PAY LATER (“BNPL”)?
More consumer-friendly and seamless alternative purchase option

A type of short-term financing that allows consumers to shop (online and in-store)
and defer payment with flexible installments, often interest-free.

2005

2012 2016

2014

Source: Investopedia, 2021; CB Insights, 2021

6
 CONSUMER LOAN MARKET IN VIETNAM
Customers suffer high interest rate charged by BNPL alternatives

Consumer Loan Market in Vietnam 2020 Sources of Consumer Loan in Vietnam

% of total respondents*

$15B
Credit card 50%
Untapped market
$12B
Consumer $10B 30%
Bank Consumer
15%
Loan
$65B Finance
5%

Banks Consumer Friends/Family Other

Finance
$30B Companies
Others

Source: Statista 2021; Euromonitor 2021; SBV; TVS Analysis

Notes: Consumer Bank Loan, Consumer Finance, BNPL sizes were estimated based on loan outstanding in 2020. Credit Card size was estimated based on total transaction
value in 2020. 7
(*): Figures rounded up
 VALUE PROPOSITIONS FOR CONSUMERS
A digital and mobile-optimized alternative purchase option

Bubble size

Consumer fee/ Credit

limit
Interest rate BNPL

Low
Credit cards

Bank loan

Consumer
finance

High

Long & complicated Quick & easy

Approval process
Note: Consumer interest rate for consumer finance is up to 36%/year. For credit card, approval process includes the credit check process upon the submission of credit card
issuance request. Credit limit for 1 approval/request for consumer bank loan without collateral/pledged assets is VND600 mn (USD26,000) on average, credit card is VND200
mn (USD8,700) on average, consumer finance is VND100 mn (USD4,300) on average, BNPL is VND10 mn on average. 8
 VALUE PROPOSITIONS FOR CONSUMERS
Current Trend: Gain momentum + Attract Gen Z and Millennials

No Debt Collection

Bypass Credit
Fee Transparency
Card’s Credit Limit

Gen Z + Millennials

Sources: TVS Analysis

9
 VALUE PROPOSITIONS FOR MERCHANTS
Attract more underserved customers and increase merchants’ revenue

Increase >75%
repurchase rate Increase
revenue

Increase 30-60%
average order value
Improve up to 30%
conversion rates
Merchant

Attract more
consumers

Source: CB Insights, 2021; TVS Analysis

10
 BUSINESS MODEL
Typical business model of pure-play BNPL providers

Merchant fee
Overdue charge 3-6% per transaction
BNPL
+ (Interest rate**) Players

Consumers Merchants
In-house/
Outsourcing*

Credit Checking
Parties

Source: TVS’ Research

Notes: Operation Model can be found in Appendix page #18.
(*) Based on the capabilities of BNPL Players; (**) Almost pure-play BNPL providers do not charge interest rate. 11
 MARKET SIZE & GROWTH
Attractive and fast-growing market

Buy Now Pay Later pure-play market in Vietnam is still small but it is estimated to grow by 140% on
annual basis to reach $400M in 2021 (CAGR of 30% during 2020-2027).

2027E
Estimated Pure-play BNPL Market Size
By loan outstanding Global
$34B
2020

$9B

APAC
$2.5B $14.5B

$150M

Vietnam
$1B
Source: Research and Markets, 2021; TVS Analysis

12
 BNPL COMPETITIVE LANDSCAPE IN VIETNAM
Besides BNPL pure-players, the space is crowded with…

Pure-play
BNPL
Company

Payment
Company

Consumer
Finance
Company

Retail &
E-Commerce

Year of Launching BNPL in Vietnam

2017 2018 2019 2020 2021 Forward

Source: Tech In Asia, 2021; TVS’ Research

Headquarter outside Vietnam
13
Plan to launch in Vietnam
 BNPL BUSINESS MODEL FLOWCHART
Default Rate < Merchant Fees (% of GMV) + Interest Rate = Sustainability

Human Judgement Capital Providers

Input Data Loan Underwriting

Prediction Machine*

NO
Training Data Decision

YES

Feedback Data Reject Approve

NO
Cost Default Loss Consumer Payment

YES
Merchant
Revenue
Consumer
Source: TVS Analysis
Notes: (*) Risk Management Model
14
 BNPL BUSINESS MODEL FLOWCHART
Key takeaways

§ Dilemma for young BNPL players: BNPL players who lack high
quality training data will need to be more aggressive in loan
underwriting and hence increasing the risk of default loss. Either
they need to have strong financing backers whom normally
staying away from unproven risk management models, or they need
to increase revenue as their consumer default loss mounts.
INCREASE REVENUE

increase interest • attract the wrong type of consumers

charges to consumers

• slowdown merchant acquisition

increase merchant fees
• slowdown the accumulation of data

Source: TVS Analysis

15
 BNPL BUSINESS MODEL FLOWCHART
Key takeaways

§ Tradeoff between growth

and sustainability:
There needs to be a balance
between aggressively growing
to accumulate data and
carefully keeping the default
loss under control.

Sustainable Business Model

Source: TVS Analysis

16
 BNPL BUSINESS MODEL FLOWCHART
Key takeaways

A strong Risk
Management Model
§ Eco-system BNPL
players’ advantage:
Lower fees charged
Allow BNPL to further
BNPL offering from data- reduce fees
to both consumers
and merchants
abundant giants (such as
PayPal, Grab, Shopee,
Traveloka, or Apple) would Attract more
Help improve Risk merchants and
have huge advantage over Management Model consumers to the
network
startups with little high-
quality data to start with.
More data

Source: TVS Analysis

17
 VIETNAM MARKET
A young market with much opportunities but also many challenges ahead

CHALLENGES OPPORTUNITIES

REGULATORY RISK
High demand of consumers and merchants
• No clear regulation for fintech

FRAUD & DEFAULT RISK

More untapped areas to entry
• Lack of personal credit history

COMPETITION
• Profit erosion No dominant player in the market yet

HIGH COSTS

• High cost of funding and CAC* The fast-growing digital economy

Source: Expert Interview, 2021; TVS Analysis

Note: (*) Customer Acquisition Cost
18
 Thank you!
Thien Viet Securities (TVS)

Ha Noi Office HCMC Office

4th Floor, TDL Building, No. 22 Lang Ha Street, Dong Da 9th Floor, Bitexco Nam Long Building, No. 63A Vo Van
District, Hanoi, Vietnam Tan Street, District 3, HCMC, Vietnam
Phone: +84-24 3248 4820 Phone: +84-28 7300 6588
Fax: +84-24 3248 4821 Fax: +84-28 6299 2088

www.tvs.vn
APPENDIX
I. Global Market Page [22]

II. Vietnam Demographics and Market Page [38]

III. Investment & Funding Page [43]

IV. Recent News Page [48]

I. GLOBAL MARKET
 BNPL: OPERATION MODEL
Basic operation model of BNPL pure-player

(2) Shop in-store or at merchants’ e-Commerce platform/via BNPL platforms

(3) Provide documents for application (credit check), no credit card needed

(8) Full delivery

(9) Installment payment over time (1) Integrate with BNPL

(up to 12 months) solutions via API
BNPL
Customer Merchants
Players (7) Confirm result
+ send full amount*

(5) Return result

(almost immediately) (4) Conduct credit checking

Credit Checking
Parties

Source: TVS Analysis

22
 BNPL: TWO-SIDED REVENUE STREAM
Generated from merchant vs. consumer

e-Wallet based
Merchant Fee Model Consumer Interest Income Model
Revenue mainly generated from merchant Revenue generated from both merchant side
Stand-alone typical model & customer side (interest rate)

Interest Rate 0% 5-30%

Merchant Fee Rate 3-10% <5%

Down Payment Yes No

Payback Tenor 1.5 – 3 months 3 – 12 months

Payback Frequency Bi-weekly, Monthly Monthly

Overdue Flat fee No*

Notable Players 2005 2014 2020 2012 2015 2020

• Consumer interest income model products usually come with

(1) interest payment (2) longer payback period (3) higher credit limits (4) no down payment required.
• Chinese BNPL players are usually e-Wallet based, benefits from existing user population

Source: AMTD Research, 2021

Note: (*) The pure-players usually don’t charge overdue fee since they have already charged the high interest rate. However, e-wallet based players can charge up to
20% for overdue payment of their BNPL product. 23
 BNPL: TYPICAL DATA SOURCES
Some sources of data for credit scoring system

Self-
reported
Traditional Data

Alternative Credit Alternative Data

payment* Bureau

Data
Sources Bank
User Account &
Behavior
Govt Data

Phone &
E-comm Telco

Source: Kredivo Pitchbook, 2021; TVS Analysis

Note: (*) utility, rent, telecom, and streaming service payments
24
 BNPL: BUSINES MODEL ANALYSIS
About the data-driven and economies of scale

Merchant
Network

Low merchant integrations

Customer Long payment tenors (>4mo)

Data Innovation

KEY No instant approval

SUCCESS
FACTORS
0% down payment

RED Reliance on late fees

Risk FLAGS
Management Capital

Source: Expert Interview, 2021; TVS Analysis

25
 BNPL: KEY OPERATING METRICS
As a lending business, BNPL players need to keep these metrics in check

Cash Conversion
NPL (Bad Debt)
Cycle

Total Loan CAC (Customer

Disbursed (GMV) Acquisition Cost)

Source: Interview BNPL Investor and Player

Note: (For players who charge interest rate from consumers, they also need to keep track NIM (take-rate).
26
 GLOBAL BNPL MARKET MAP
Expand across different regions and commerce categories

Source: CB Insights, 2021

Note: The landscape only includes pure-play BNPL companies.
27
 GLOBAL BNPL PURE-PLAYERS
Role Models: Klarna, Afterpay, Affirm

BNPL Financing
Est. 2005 (Sweden) 2014 (Australia) 2012 (USA)

Geographies 17 countries in Europe, USA, UK and Australia USA, AUS, UK, NZ USA

Revenue model Merchant fee Consumer interest Merchant fee Consumer interest

Installment frequency bi-weekly, monthly monthly bi-weekly monthly

Payback period 4 - 6 weeks flexible 6 weeks 3 - 12 months

Down Payment 25% 0% 25-30% 0%

Merchant Fee 3% - 6% 1% - 3.29% 3.9% 5.5%

Customer Interest Rate 0% 0-20% 0% 0-30%

Late fee $7 $35 $10 + $7 per week $0

Ticket Size (USD) 35 – 1,000 n/a 50 – 1,500 50 – 10,000

GMV (FY20) $53B $11B $4.6B

EV/2020 Rev 27x 48x 14x

EV (USD) $31B $20B $12B

Revenue 2022E (USD) $1.9B $0.8B $1.2B

Source: Sacra Report, 2021

28
 E-WALLET BASED COMPANIES OFFER PAY-LATER
Some data-abundant giants have jumped into the BNPL space

Est.* 2019 (Singapore) 2020 (China) 2015 (China) 2020 (USA)

Geographies Philippines, Singapore China China USA

Revenue model Merchant fee Consumer interest Consumer interest Merchant fee

Installment frequency monthly monthly monthly bi-weekly

Payback period 1 - 4 months up to 10 months 3 - 12 months 2 months

Down Payment 25% 0% 0% 25%

Merchant Fee n/a n/a n/a $0.3 + 2.9%

Customer Interest Rate No Yes Yes No

Late fee $10/time 0.06% daily interest 0.04% daily interest Vary by states

Ticket Size (USD) n/a 0 – 3,000 50 – 5,000 30 – 600

Source: The Ascent, 2021

Notes: (*) Year of launching BNPL
29
 BNPL: Alternative Payment to Bypass Credit Card
40% of customers choose BNPL to avoid paying credit card interest

The reverse growth of BNPL and credit card ..as BNPL is considered as an alternative
has been observed in the last 5 years... payment of credit card.

Number of Credit Cards & BNPL Revenue Reasons customers choose BNPL over credit cards
in Australia (2011-2020) (2020)
39% 38%

Million AUD$
Credit cards (‘000)

25%

16% 15% 14%

Avoid Buy things Borrow Don't like to Can't get My credit

paying not in my without use credit approved cards are
credit card budget credit check cards for a credit maxed out
interest card

Source: IBISWorld, 2020; CB Insights, 2021

30
 BNPL IN THE UNITED STATES
Has grown by 180% in 2020

While contributing only a low percentage of

spending, BNPL has seen growing fast, Electronics and Fashion are the most
common categories of BNPL purchases.
especially for Gen Z and Millennials.

Change in of purchases Common category of BNPL purchases

by payment method and generation (USA, 2020)
44%

37%
250 GenZ
214 33%
31%
Millenials
change in value of purchase

200 186
170
Gen X and older 23%
150
15%
100
7%
50
21 19
6
0
-4 -6 cs

s
n

s
d

s
re

ie

er
r ie
ol
hio
-16

itu
ni

ov
eh

th
Credit Debit BNPL

ce
ro

s
-50

rn

O
M
Fa

us

ro
t

Fu
ec

s/
Ho

ok
El

Bo
Source: CB Insights, 2021; Sacra Report, 2021

31
 RECENT TREND
Successful Story: Klarna (Sweden) – Global Player

Company Success Factors

Founded in 2005 in Sweden, Klarna is one
of the first BNPL in the world and currently a
leading player. At their $31B last round
valuation, Klarna is currently the highest-
valued private fintech company in Europe.
Products
To overcome these competitive threats, Klarna is
pivoting from a BNPL pure play to a direct-to-
consumer shopping app. Instead of only showing
up at checkout, Klarna would go further upstream
and cover the entire shopping experience from
discovery, selection, conversion to retention.

• Interest-free installments 700 20

16 15
BNPL • 4 installments spread out over 2 months
600

GMV/consumer (USD)
• Overdue: $7 per transaction
10

YoY Growth %
500
8
400
• Pay up to 30 days later without interest 0
Pay In 30 Days 300
or any fees
1M
200 750K -10
-15
100
• Pay over 6 to 36 months with monthly
Financing repayments 0 -20
2017 2018 2019 2020
• Interest-bearing (up to 18.99% APR)

Source: CB Insights, 2021; TVS Analysis

32
 RECENT TREND
Successful Story: PayPal – “Pay In 4” (USA)

Company Success Factors

PayPal believed pay-later product can
certainly appeals to certain individuals that
they don’t necessarily need to have a long-
term credit relationship with a financial
institution. This has led PayPal to develop
its own in-house solution to compete in the
BNPL space, called Pay in 4.
PayPal has already had a massive base of 28M
merchants — orders of magnitude larger than the
top pure-play BNPL companies. In the US, 80 of the
top 100 retailers already offer customers PayPal as
a checkout option, and nearly 70% of US online
buyers have a PayPal account.
With it has a massive, profitable network,
PayPal can offer its Pay in 4 option for FREE to its
merchants.

Products
PayPal Pay in 4 Total Transactions Value (USD)

36%
• Pay in 4 installments every two weeks Launched Pay in 4 last
Pay in 4 1M year, PayPal processed
• Interest Free (0% APR)
(launched in 2020) 750K $1B transactions and
• Overdue: daily interest charge reached 3.3M unique
• No Credit Scoring impact active users in Q1/2021.
Q4/2020 Q1/2021

Source: CB Insights, 2021; TVS Analysis

33
 RECENT TREND
Klarna vs. PayPal

WEB NATIVE ECOMM NATIVE

PayPal built around the financial network Klarna build around the card

Klarna is more in line with how younger generations think about consumption and counter-position
itself against PayPal to win Generation Z. They takes an incumbent’s business model, counter-
positioning their product against it, and aligns with a youth movement.

Source: Sacra Report, 2021

34
 SOUTHEAST ASIA BNPL PLAYERS
Some SEA players will operate their businesses in Vietnam soon

Source: Tech In Asia, 2021

Notes: Not an exhaustive list of players, (includes some firms which are not headquartered in SEA but have operations in the region).
35
 RECENT TREND
Successful Story: Huabei by Ant Group (China)

Company Traction

Launched by Ant Group in 2015, Huabei

was positioned as a virtual credit card for Huabei’ outstanding loans,
Ant Group’s e-Commerce platform* users $Bn (2017-19)
mainly. It is used by more than 50% Alipay
users (apx. 450M Chinese) 140 +

Products 10x

• Installment loan in 3/6/9/12 month

Installment • Interest: 2.3 – 7.5% GMV
• Overdue: daily interest charge
14
• 41 interest-free days
Postpaid • Pay bill on 9th next month, free for Jun-17 Aug-19
on-time payment

Source: TVS Analysis

36
II. VIETNAM MARKET & DEMOGRAPHICS
 VIETNAM’S POPULATION
The Growth Of Ultra-Rich Population

Vietnam Is The 3rd Most Populous …Creating A Much Wealthier Population

Country In Southeast Asia

The country’s total population is nearly 100 million and The country is aiming to boost per-capita GDP and
disproportionately young with 63% of Vietnamese are expected to increase 7% CAGR (2020 – 2025), which is
under the age of 40. also a positive signal for business.

Population in Selected Countries, 2020 Vietnam’s GDP per Capita (USD)

267
(million people)
%
4,000 R–7
CAG

3,000 – 6%
CAGR
109
99 2,000

3,874
69

2,776
57
33 1,000

2,097
17
6 7
0
2015 2020 2025
a

es
os

ar

nd

m
a

a
e

di

si
or

si
nm

na

in
La

la
bo

ay

ne
ap

pp
ai

et
ya
al

do
m
ng

Th

Vi

ili
M

M
Ca

In
Si

Ph

Source: Euromonitor, 2020

38
 VIETNAM’S INTERNET ECONOMY
A Booming Market

Nearly 80% of Vietnamese Population … Resulting in Strong Growth of the

will have Internet Connection in 2025 Internet Economy

The rapid development of internet infrastructure combined Internet Gross Merchandise Value in Vietnam grew by
with the rise in affordable smartphones create huge 16% in 2020, the strongest among all Southeast Asia
opportunities for internet-based services. countries and is expected to accelerate even further.

Internet Users and Internet Penetration Rate in Vietnam Internet Gross Merchandise Value (GMV) in Vietnam
120 90% (USD billion)
80%
100
70% 60 52

Penetration rate
79
80 60% 50 9%
Million users

–2
64 GR
50% 40 CA
60
40% 30
38
40 30% 20 12 14
20% 10 3
20
10% 0
2015 2019 2020 2025
0 0%
2015 2020 2025

Internet Users Internet Penetration Rate

Source: Euromonitor, 2020

39
 VIETNAM’S CREDIT CARD ADOPTION
Low Credit Card’s Penetration comparing to other SEA countries

Vietnam has a Poor Access to Credit … with Weak Credit Infrastructure

Cards with Limited Growth

Cash transactions remain highly popular in Vietnam The country has low credit bureau coverage contributes
compared to other ASEAN countries as it has low to low approval rate, one of the main drivers for low credit
banking penetration. Credit card ownership in Vietnam card penetration.
accounts for only 4.1 percent of the population.

Credit Card Penetration in Selected Countries (%) Private Credit Bureau Coverage (% of Adult, 2020)
60 100
89
49
50
80

40 63 64
60
30
40
21 40
20
21
10 20
10 14
4
2 2
0 0
Phillipines Vietnam Indonesia Thailand Singapore Malaysia Phillipines Vietnam Indonesia Thailand Singapore Malaysia

Source: Statista, 2021; WorldBank Data, 2021

40
 VIETNAM’S E-COMMERCE & DIGITAL WALLET MARKET
The market is growing and gaining momentum

GMV of E-commerce grew by 46% to reach

B2C E-Commerce Market is estimated to
USD7 billion in 2020, surpassing Online
grow of 15% CAGR in 2019 - 2023
Travel to become the largest sector

GMV by Sector in 2020 Vietnam B2C E-Commerce Market, 2019-2023

(USD Billion)
1%
R
CAG
E-commerce
11% 18 15.8
16 15%
Online Media 14
12
20% 10 9.0
47% Online Travel
8
Transportation & Food Delivery 6
4
2
Edtech 0
22% 2019 2020 2021 2022 2023

E-wallet transaction value

2020 2030 Vietnamese are embracing digital payment as a replacement
CAGR – 47% USD91 for cash. Total transaction value for commercial payments
USD2 billion billion made via e-wallets is estimated at USD2 billion in 2020 and
projected to reach USD91 billion in 2030.

Source: Euromonitor, 2021; Statista, 2021

41
III. INVESTMENT & FUNDING
 BNPL FUNDING IN GLOBAL AND SOUTHEAST ASIA

The potential of BNPL has been responded The market in Southeast Asia is still young,
with 40% growth in average funding value but the potential of BNPL has been responded
and 93% growth in global funding. with the increasing of successful deals.

Global BNPL Equity Funding* (2016-2020) Southeast Asia BNPL Equity Funding** (2016-2020)
1,600 25 500 9 10

1,400 20
19
20 400 8
Funding amount ($M)

Funding amount ($M)

1,200 7
15

Deal Count
Deal Count
1,000 15 300 6
800 4
600 10 200 4
7
400 5 2
5 100 3 2
200

0 0 0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

Source: CB Insights, 2021; Tech In Asia, 2021

Note: (*) Disclosed Deals; (**) The graph does not include BNPL firms that are not headquartered in Asia or firms whose main service aren’t in BNPL.
43
 BNPL SOUTHEAST ASIA FUNDING

Company Funding Pre-money

HQ Stage Investors Year
Name Amount Valuation
Ree-Pay Vietnam Seed VC Angel Investors undisclosed 2021

Fundiin Vietnam Seed VC 1982 Ventures, Zone Startups Ventures undisclosed 2021

Pace
Singapore Early stage Alpha JWC Ventures, Vertex Ventures $5.25M 2020
Enterprise
Allectus Capital, Genting Ventures, iGlobe
Series A undisclosed 2020
Singapore Partners
Hoolah
AccelerAsia, Aletra Capital Partners, iGlobe
Seed undisclosed 2018
Partners
Lone Pine Capital, Temasek, Ward Ferry
Private Equity - III Management, Baron Funds, and 4 more Venture $285M $3,000M 2021
Capitals

Private Equity - II Lone Pine Capital undisclosed 2020

Strategic investment Master Card undisclosed 2020

Pine Labs India
Late stage Altimeter Capital, Actis $82M 2018

Unattributed VC - II PayPal Ventures, Temasek Holdings $125M $775M 2018

Private Equity - I Actis Capital, Altimeter Capital $82M 2018

Unattributed VC - I New Atlantic Ventures, Sequoia Capital India undisclosed 2009

Source: Tech In Asia, 2021

44
 BNPL SOUTHEAST ASIA FUNDING

Company Funding Pre-money

HQ Stage Investors Year
Name Amount Valuation
Tendopay Philippines Seed Iterative $0.15M 2020
Series B Peter Lee, Wix $50M 2020

Debt Silverhorn Investment Advisors $20M 2020

Oriente Hongkong
JG Summit Holdings, Sinar Mas Group, Berjaya
Series A $105M 2018
Group

Seed VC 500 Startups, Louise Daley $0.55M 2020

Split Singapore
Seed Entrepreneur First $0.06M 2018
Series D Ant Financial $100M $350M 2019

Qiming Venture Partners, Sequoia Capital, Blue

Series C Sky Alternative Investments, and FinUp Finance $70M 2018
Technology Group

Arbor Ventures, DCM, IDG Capital,Legend

Series B Capital, Qiming Venture Partners, Shunwei China $30M 2017
Akulaku Indonesia Internet Fund

DCM Ventures, Eight Roads, Arbor Ventures,

Bridge $15M 2017
Welight Capital

Series A - II DCM Ventures, IDG Capital $10M $40M 2016

China Growth Capital, DCM Ventures, IDG
Series A $5M 2016
Capital

Source: Tech In Asia, 2021

45
 BNPL SOUTHEAST ASIA FUNDING

Company Funding Pre-money

HQ Stage Investors Year
Name Amount Valuation

Strategic investment Goldbell Group, Lendlease $74.76M 2020

Rely Singapore
Pre-series A Goldbell Group,Octava undisclosed 2019
Credit - IV Victory Park Capital $100M 2021
Credit - III Victory Park Capital $100M 2020
Credit - II PermataBank $71M 2019
SingTel Innov8, Square Peg Capital, Reinventure,
Cathay Innovation, Kejora Ventures, Mirae Asset
Series C - II $90M $410M 2019
Capital, Telkomsel Mitra Inovasi, and DST
Partners

FinAccel Series C MDI Ventures, and Telkomsel Mitra Inovasi undisclosed 2019
Indonesia
(Kredivo)
500 Startups, Jungle Ventures, GMO
VenturePartners, Square Peg Capital,
Series B $30M 2018
OpenSpace Ventures, Alpha JWC Ventures, MDI
Ventures, and Atami Capital
Jungle Ventures, Openspace Ventures (NSI
Series A undisclosed 2017
Ventures)
500 Startups, Alpha JWC Ventures, GMO Venture
Seed undisclosed 2016
Partners, Jungle Ventures
Strategic investment Ant Financial undisclosed 2017
Dana Indonesia
Strategic investment Emtek Group undisclosed 2015

Source: Tech In Asia, 2021

46
IV. RECENT NEWS
 BNPL RECENT NEWS

Aug Credit Bureau Asia to enter Vietnam financial data provider FiinGroup

2021 Credit Bureau Asia has signed a memorandum of understanding to enter Vietnam in partnership with Hanoi-headquartered financial data
provider FiinGroup. Under the agreement, both companies will form a joint venture in Vietnam to provide analytics and data solutions to
financial institutions, credit granting agencies, payment services agencies and other data companies. The partnership will also support
the data analytics capabilities Buy Now, Pay Later players and mass market services such as telcos.

Aug Kredivo to go public via $2.5Bn SPAC merger

2021 FinAccel on Monday agreed to go public through a merger with a blank-check firm, valuing the parent of Indonesian buy now, pay later
platform Kredivo at about $2.5 billion, a further sign of consolidation in the fast-growing sector. Kredivo, the largest buy now, pay later
platform in Indonesia, provides customers instant credit financing for e-commerce and offline purchases, as well as personal loans,
based on AI-enabled real-time decisioning.

Square acquires BNPL Afterpay for $29Bn

Aug
Square — the financial payments company known for its popular Cash App — said it plans to merge Afterpay with its existing apps. That
2021
will give "even the smallest of merchants" the ability offer buy now, pay later services at checkout, among other offerings. Afterpay
was founded in 2015 and launched in America in 2018. Afterpay, meanwhile, is among the most prominent companies in the space.
Square says 100,000 merchants globally use the platform, and that it has more than 16 million customers.

Source: Online News (Latest updated: Aug 4, 2021)

48
 BNPL RECENT NEWS

Jul Grab taps Adyen to extend BNPL offering across Southeast Asia
Grab, has deepened its partnership with Adyen, the payments platform of choice for many of the world’s leading companies, by enabling
2021
more merchants – starting in Singapore and Malaysia – to offer PayLater payment options to consumers. Customers will be able to
choose between interest-free payments over four installments (PayLater installments), or the following month (PayLater Postpaid).

Jul Grab PayLater, Atome, Hoolah gain traction amid BNPL boom in Singapore
About 19% of Singapore’s population over the age of 16 has tried a BNPL service such as Hoolah, Atome, or Grab PayLater. 30% of
2021
Singaporeans aged between 25 and 34 were “most likely” to have used a BNPL service. While half of the users spend about S$100
(US$74.25) or less, consumers with moderate-to-high income shell out over S$501 (US$372) while using BNPL services.

Vietnamese BNPL startup Fundiin partners with ecommerce firm Sapo

Jul
Vietnam-based Fundiin is set to provide buy now, pay later (BNPL) services to B2B ecommerce company Sapo, integrating the payment
2021
option at checkout for over 100,000 merchant clients on the online shopping platform. Under the partnership, eligible Sapo merchants can
offer customers the option to split their orders into three interest-free monthly installments.

Apple, Goldman Plan ‘Buy Now, Pay Later’ Service to Rival Affirm
Jul
Apple Inc. is working on a new service that will let consumers pay for any Apple Pay purchase in installments over time, rivaling the “buy
2021 now, pay later” offerings popularized by services from Affirm Holdings Inc. and PayPal Holdings Inc. The upcoming service, known
internally as Apple Pay Later, will use Goldman Sachs Group Inc. as the lender for the loans needed for the installment offerings,
according to people with knowledge of the matter.

Source: Online News

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 BNPL RECENT NEWS

Fintech giant Klarna raises $639M at a $45.6B valuation amid ‘massive momentum’ in the US
Jun
Just over three months after its last funding round, European fintech giant Klarna is announcing that it has raised another $639 million at
2021
a staggering post-money valuation of $45.6 billion. Overall, Klarna is live in 20 markets, has more than 90 million global active users and
more than 2 million transactions a day conducted on its platform. The company’s momentum can be seen in its impressive financial
results. In the first quarter, Klarna notched $18.1 billion in volume compared to $9.9 billion in the prior year first quarter. In all of 2020, it
processed $53 billion in volume.

ADDI raises $65M in new funding

May
Bogota- and Sao Paulo-based BNPL company ADDI announced new funding for $65M in debt and equity, as well as strategic
2021
partnership with Banco Santander to grow ADDI’s business in Colombia and support its launch in Brazil.. The new $35mm Series B
round was led by Union Square Ventures and 7 more investors. Some existing investors also participated in the round. $30M in fresh
debt was funded by Architect Capital.

Apr Tamara Raises $110M Led By Checkout.com

eCommerce company Checkout.com is leading a $110M funding round in debt and equity for Saudi payments firm Tamara to expand its
2021
operation - first in the Persian Gulf region and then across the wider Middle East. The deal would be one of the region’s largest-ever
startup venture rounds.

BNPL Startup Zilch Valued At $500M

Apr
UK-based BNPL startup Zilch has raised $80M in funding, bringing its value to more than $500M as it prepares to expand to the U.S.
2021 Zilch’s differentiation lies in its partnership with Mastercard, the only third-party Zilch works with. Zilch created a payment card that allows
customers to use a Mastercard number at checkout, giving them the option to pay in installments or pay the same way they would with a
traditional credit card.

Source: Online News

50
 BNPL RECENT NEWS

Mar Traveloka Plans to Launch BNPL Services in Thailand and Vietnam

2021 Southeast Asian online travel startup Traveloka announced plans to launch buy now, pay later services in Thailand and Vietnam to its 40
million active monthly users. Having launched its financial services in Indonesia, Traveloka said that it has facilitated more than 6 million
loans, launched “Paylater” credit cards with several local lenders while offering insurance and wealth management services. Traveloka
added that it could potentially acquire a bank in Indonesia similar to Gojek’s move in acquiring a 22% stake in Bank Jago as part of its
push into the fintech space.

Mar Fundiin receives financing for its Vietnam-focused BNPL platform from 1982 Ventures
Buy-now, pay-later startup Fundiin said it has raised an undisclosed amount of funding led by 1982 Ventures and Zone Startups
2021
Ventures. As part of the deal, Scott Krivokopich, Managing Partner at 1982 Ventures, has joined Fundiin’s board. The fresh funds will go
towards bankrolling market expansion plans as the BNPL startup seeks to serve a “growing waitlist of merchants and their customers.”

Amid buy-now-pay-later boom, Paidy becomes unicorn after raising $120M in series D
Mar
Tokyo-based Paidy, the Japanese startup behind cardless online payments and “Buy Now, Pay Later” service, has raised US$120
2021 million in a Series D round, according to Nikkei’s report. It says the amount is one of the largest ever raised by an unlisted startup in
Japan. Prior to this, the company secured $55 million in a Series C round in July 2018, followed by its extension round securing $83
million in November of 2019 and an undisclosed sum in April of 2020. The latest round brought the sum raised up to date to about $337
million while the total amount of debt facilities has reached $248 million. According to sources, their valuation is estimated about $1.32
billion, which means they have join the unicorn club.

Mar Afterpay Rolls Out In-Store Digital Card For BNPL

2021 Australia's BNPL startup Afterpay has introduced a virtual card solution for in-store payments, the company said in a press release in
March 29th. Afterpay’s virtual card offers people the ability to spread payments across four equal installments without incurring any fees
or interest, whether users are shopping in physical stores or online. The Afterpay card can be created through the app and stored in a
smartphone’s digital wallet.

Source: Online News

51
 BNPL RECENT NEWS

Feb AsiaPay, Atome to enable ‘buy now pay later’ (BNPL) acceptance
Hong Kong-based AsiaPay, a digital payment solution and technology vendor, and ‘Buy Now Pay Later’ platform, Atome, announced a
2021
joint partnership aimed at enabling seamless, flexible installment payment options online and offline retail businesses across the Asia
Pacific (APAC) region. As an integrated digital payment solution and payment service provider in Asia, AsiaPay’ s platform connects to
over 100 banks and alternative payment methods, including credit and debit cards, bank account/net banking, pre-paid cards, digital
wallets and now BNPL products in 11 country locations (including Vietnam).

Feb BNPL giant Klarna has tripled its valuation to $31 billion, making it Europe's most valuable private startup
2021 Swedish "buy now, pay later" payments company Klarna has nearly tripled its valuation to $31 billion in less than six months, after it
announced a new $1 billion fundraising round. The new round, which makes Klarna the most valuable European startup, was
oversubscribed four times and included a combination of new and existing investors. The firm completed a $650 million funding round in
September/2020 from a group of investors led by Silver Lake that valued it at $11 billion.

Jan Agoda Rolls Our Buy Now, Pay Later Payment Solution With Atome
2021 Digital travel platform Agoda has launched a regional partnership with Singaporean buy now, pay later platform Atome to offer flexible
installment payment options for accommodation bookings first in Singapore and Malaysia, before rolling out to include eight additional
markets in Southeast Asia and Asia Pacific this year. This new convenient and secure payment option for Agoda travelers will expand to
include additional SEA markets including Indonesia, Philippines, Thailand, Vietnam as well as Hong Kong and Taiwan next year.

Jan Affirm IPO Highlights Rapid Growth of ‘Buy Now, Pay Later’ Industry
2021 Affirm kicked off trading on the Nasdaq, amid what has turned out to be a good year for BNPL companies. Shares of Affirm, the first major
tech IPO of 2021, jumping 100 % in first day of trading from the $49 per share open to just over $100 per share before closing out the day
at $97.24 per share. Inside IPO, Affirm has raised a total of $1.5 billion in funding from investors including Durable Capital
Partners, GIC, Thrive Capital and Spark Capital.

Source: Online News

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RESEARCH CONTRIBUTORS

TIEN HOANG LINH PHAM BICH PHAM

Analyst Analyst Analyst
E: tienhpc@tvs.vn E: linhpk@tvs.vn E: bichpn@tvs.vn

Thien Viet Securities – Investment Banking Division

 Thank you!
Thien Viet Securities (TVS)

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