Vietnam-based Anfin makes stock investing affordable – TechCrunch

Based in Vietnam, Anfin wants to turn more people into equity investors with features such as partial trading and app communities. The Y Combinator alumnus announced today that he has raised $ 4.8 million in Series A, led by angel investor Clement Benoit, founder of Stuart and Not So Dark, and Y Combinator. Participants in the round also include Rebel VC, Kharis Capital, Newman Capital, First Check Ventures, Micro Ventures, Springcamp and AngelHub.

The funding will be used to develop Anfin’s products, especially its social investment features, including one that allows users to host and join live audio rooms. The app’s own stock trading platform includes stock profiling and risk assessment. It also plans to offer more classes of financial assets, in addition to its current 300 shares and nine ETFs.

Its retail features allow consumers to start investing only 10,000 VND (or about 40 US cents), giving them access to stocks they would not otherwise be able to afford. Like other Generation Z investment applications and Millennium users (90% of Anfin users are between 18 and 35 years old), Anfin has educational content on the basics of the stock market.

The founders of Anfin Hiep Nguyen, Phuoc Tran, Chi Pham and Michael Do

Anfin was launched in October 2021 by Hiep Nguyen, Phuoc Tran, Chi Pham and Michael Do. Its founders say it has been withdrawn more than a million times since then, driven in part by increased interest in mobile banking and online investment during the COVID-19 pandemic. There are now 100,000 funded accounts, and deposits have reached $ 5 million and $ 10 million in total transactions.

The startup is the newest investment application in Southeast Asia to obtain venture capital financing. Other examples include Pintu, Pluang, Bibit, Ajaib and Syfe.

Do told TechCrunch that the founders of Anfin became interested in a stock trading app “by observing the disconnection from growing demand for stocks as an asset class with rising stock market investment costs. In particular, Vietnam changed the size of its trading lot from 10 shares to 100 shares, which meant that blue-chip shares cost $ 400 to $ 600 for a full lot.

As a result, the founders of Anfin saw an opportunity to reduce investment costs by offering partial shares and becoming a provider of liquidity or charging a spread for immediate settlement. He added that retail is Anfin’s most popular feature, with an average transaction value of $ 20.

One factor in Anfin’s favor is the Vietnamese government’s goal of increasing the number of people investing in stocks from 3% in 2021 to 5% in 2025 and 10% in 2030.

Anfin’s social investment product allows consumers to communicate with each other. It also includes an algorithm for ranking news feeds and using a bull-and-bear-like system that identifies and includes the best traders in the app, Doe said.

“Building this feature directly in the app strengthens trust, as the investment profile includes indicators that highlight the investor’s performance and level of risk,” Do said. Ultimately, the app will also include incentives run by influential people (Do said the team prefers the term social investment to the copy trade).

Anfin provides revenue through trading commissions. Do said the app doesn’t believe in paying for order flows (PFOF) or selling its user data. Instead, it integrates directly with brokerage partners and orders for its consumers through regulated exchanges in Vietnam. It also has a subscription feature called Anfin VIP, which gives the startup a source of recurring revenue.

In a prepared statement, Benoit said: “Democratizing access to social stock trading through a simple and friendly product is definitely the answer to a large untapped market in Asia. I have no doubt that this Serie A funding will allow Anfin to expand beyond Vietnam and become a reference point in social trade.

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