What Was F88’s Business Model Before Going Public?

10 May, 2025

Leading the Pack

The traditional financial system, including credit institutions such as banks and consumer finance companies, currently serves as the backbone of the economy. However, it has not been able to fully meet the needs of the people.

According to a survey conducted by EY Vietnam and published in late 2024, approximately 42% of surveyed Vietnamese respondents revealed that they lacked access to banking services and had resorted to borrowing from illegal credit sources. This significant gap has created a vast opportunity for alternative financial service providers such as F88 to step in.

Alternative finance refers to financial channels, processes, and instruments that exist and develop outside of the traditional financial system (credit institutions and capital markets). Established in 2015, F88 quickly recognized the potential of the alternative financial market and has since become one of the leading companies in this sector.

According to F88’s public information disclosure, as of the end of 2024, F88 operated 868 stores across 63 provinces in Vietnam. An insider source from F88 revealed that the number of stores has now increased to nearly 900. Additionally, the company has recently partnered with a large domestic corporation that owns approximately 10,000 transaction points nationwide. With this collaboration, F88 will soon have a network of almost 11,000 transaction points, including approximately 900 of its own stores and 10,000 partner transaction points.

With its superior brand recognition and business scale, F88 disbursed over VND 12,000 billion to customers in 2024. In the first quarter of 2025, the disbursement value exceeded VND 3,200 billion, a 25% increase compared to the same period last year. Thanks to a focus on enhancing customer experience and offering products that cater to the needs of the people, F88 achieved a remarkable 55% repeat customer rate. This means that out of every two customers, one returns for a second or more transactions.

F88’s transaction stores have been growing at a CAGR of 63%

As a pioneer and leader in the promising yet nascent alternative financial market in Vietnam, F88 has garnered the attention of numerous foreign investment funds. From 2016 to 2023, the company received investments from prominent funds such as Mekong Capital, Granite Oak, and most recently, the Vietnam Oman Fund (a joint venture between two government-owned organizations: the Oman Investment Authority and the State Capital Investment Corporation of Vietnam).

A New Investment Opportunity in the Stock Market

In 2024, F88 reported impressive business growth, with net revenue surpassing VND 2,280 billion, a 10% increase compared to 2023. This remarkable performance resulted from the recovery of business operations and optimization of transaction office efficiency, along with the acquisition of new customers and retention of existing ones.

2024 also marked a significant improvement in F88’s gross profit margin, which stood at 27.49%, resulting in nearly VND 627 billion. This achievement is a testament to F88’s enhanced risk management and debt collection practices, leading to a substantial 41% decrease in provisions for irrecoverable loans. Consequently, F88 recorded a net profit of over VND 351 billion in 2024, with ROA and ROE reaching 7.82% and 22.63%, respectively. The company’s debt-to-equity ratio remained at a healthy 1.9, significantly lower than the consumer finance company median of 4.6, reflecting a balanced approach to capital utilization that prioritizes both safety and efficiency.

In line with its vision to become Vietnam’s leading alternative financial services group for the underbanked segment, F88 aims to increase its customer base by 30% in 2025. The company will continue to expand its distribution channels, including increasing the number of stores to 888 in the second quarter of 2025, strengthening partnerships to reach more customers, and enhancing online/digital platforms through online distribution, application development, and the eventual completion of its ecosystem to evolve into a digital bank in the future.

“To achieve this, we need to attract more capital from investors and financial institutions by adopting higher standards of governance and business and financial practices. Becoming a public company and listing on the stock exchange is a driving force for us to make this happen,” affirmed Mr. Phung Anh Tuan, Founder and Chairman of the Board of Directors of F88.

The public offering of F88 marks a significant step in the company’s development journey, underscoring its commitment to transparency and its efforts to standardize corporate governance according to international standards.

F88’s public offering and UPCoM listing also present an opportunity for public investors to participate in the promising alternative financial market in Vietnam, alongside professional investment funds that are always on the lookout for and ahead of the curve in private investments in potential startups. Mekong Capital, for instance, has successfully invested in The Gioi Di Dong (MWG), Golden Gate, Traphaco (TRA), PNJ, Masan (MSN), Pharmacity, and Vua Nem, to name a few.

Minh Tai

– 09:22 10/05/2025