Vietnam-based Anfin makes stock investing accessible – TechCrunch

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

The funding will be used in Anfin’s product development, especially its social investment features, including one that allows users to host and join live audio rooms. The app’s proprietary stock trading platform includes stock profiles and risk assessment. It also plans to offer more financial asset classes, in addition to its current 300 stocks and nine ETFs.

Its fractional trading features allow users to start investing with as little as 10,000 VND (or around 40 US cents), giving them access to shares they might not otherwise be able to afford. Like other investment apps geared toward Gen Z and millennial users (90% of Anfin users are between the ages of 18 and 35), Anfin has educational content on the fundamentals of the stock market.

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

Anfin founders 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 downloaded more than a million times since then, fueled in part by increased interest in mobile banking and online investing during the COVID-19 pandemic. He now has 100,000 funded accounts and deposits have reached up to $5 million and $10 million in total transaction value.

The startup is the latest investment app in Southeast Asia to raise venture capital funds. Other examples include Pintu, Pluang, Bibit, Ajaib, and Syfe.

Do told TechCrunch that Anfin’s founders became interested in a stock trading app “by seeing the disconnection of the growing demand for shares as an asset class with the rising cost of investing in the stock market. Specifically, Vietnam changed its trading lot size from 10 shares to 100 shares, which meant that top-tier shares cost $400-$600 for a full lot.”

As a result, Anfin’s founders saw an opportunity to lower the cost of investment by offering fractional shares and becoming a liquidity provider, or by charging a spread for instant liquidation. Do added that split trading is Anfin’s most popular feature, with average transaction values ​​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 users to communicate with each other. It also includes a newsfeed ranking algorithm and the use of a “bull and bear”-like system that identifies and features top traders on the app, Do said.

“Building this feature directly into the app builds trust, as the investment profile presents metrics that highlight an investor’s track record and risk level,” said Do. Eventually, the app will also include influencer-driven incentives (Do said the team prefers the term social investing over copy-sharing).

Anfin monetizes through commercial commissions. Do said the app doesn’t believe in pay-per-order-flow (PFOF) or the sale of your user data. Instead, it integrates directly with brokerage partners and orders its users through Vietnam’s regulated exchanges. It also has a subscription feature called Anfin VIP that provides the startup with a recurring revenue stream.

In a prepared statement, Benoit said: “Democratizing access to share trading with a social layer through a simple and friendly product is definitely the answer to a huge untapped market in Asia. I have no doubt that this Series A funding will allow Anfin to scale beyond Vietnam and become a benchmark in social commerce.”

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