Mongolia Fintech Secures $21.4 Million in Series B Investment
Mongolia Fintech, a leading company in the financial technology sector, has successfully raised $21.4 million in its Series B investment round. The funding was spearheaded by the International Finance Corporation (IFC) and AEON Financial Service from Japan, with additional participation from Marubeni Corporation, SBI Holdings, and Premium Group.
Expanding Financial Inclusion in Southeast Asia
This capital injection aims to scale operations and enhance financial services across Southeast Asia, focusing on AI-powered solutions and innovative tools tailored to meet the needs of micro, small, and medium-sized enterprises (MSMEs). The goal is to significantly improve financial inclusion for this sector.
Company Background and Achievements
Founded in 2017, Mongolia Fintech has emerged as a provider of digital loan services within Mongolia. The company has established itself as a regional leader in offering innovative financial solutions to institutions that strive to enhance efficiency and productivity.
Key Highlights from the Funding Round
- Mongolia Fintech raises $21.4 million to drive MSME financing through AI technology in Asia.
- IFC’s commitment to support Mongolia’s fintech sector with Series B investment.
- Lendmn secures $20 million to advance digital loan offerings for MSMEs.
Global Presence and Workforce
Mongolia Fintech operates with 13 subsidiaries and employs 250 professionals in key markets including Mongolia, Japan, Singapore, the Philippines, and Thailand. The company’s diverse workforce is vital in addressing the challenges of financial exclusion that many face globally.
The State of Financial Inclusion
According to statistics from global banking studies, around 1.4 billion adults still lack access to a financial account. Moreover, GSMA’s estimates suggest that approximately three-quarters of 400 million microenterprises in emerging markets operate informally, highlighting the need for accessible financial solutions.
Future Prospects for Financial Technology in Mongolia
In April, Lendmn, a subsidiary of Mongolia Fintech, secured a $20 million debt facility aimed at boosting digital loan services, further addressing critical financial access issues faced by MSMEs in Mongolia. As Matthieu Le Blan, the resident representative of IFC for Mongolia, noted, digital solutions can significantly broaden access to finance, fostering technological entrepreneurship and job creation, especially among women and youth.
The partnership between Mongolia Fintech and IFC represents a critical step towards harnessing digital technology to improve financial services, ultimately contributing to economic growth and sustainability in the region.