Victor Group Holdings (ASX: VIG) has signed an agreement to take a strategic investment with a 25% stake in fintech LIT Technology for A$2 million.
LIT Technology is an innovative fintech company, headquartered in Australia with branches in Singapore and Vietnam. The company is advancing rapidly in the financial technology industry by offering a diverse range of services, including:
- Buy Now Pay Later (BNPL): This service provides consumers with deferred payment options, enhancing their shopping experience by making it seamless and financially manageable.
- Digital Finance Technology Platform: LIT is set to launch a FinTech platform in collaboration with Shouqianba, a leading merchant finance solution and mobile payment provider. This initiative will capitalise on the BNPL service's momentum, aiming to revolutionize digital transformation for merchants and end-users.
- Micro Lending to SMEs: In alignment with the evolving fintech ecosystem, LIT intends to offer micro lending services, focusing on underserved SME segments in Vietnam. This service will complement the existing BNPL and the FinTech platform offerings, thus providing a comprehensive suite of financial solutions.
Rationale for Investment
Zhenxian (Brady) Wu, Managing Director/CEO of Victor, said the investment will expand VIG’s SaaS, PaaS, and IaaS education cloud platforms and information technologies into the fintech sector.
It provides VIG a strategic foothold in Southeast Asia, particularly in Vietnam, where LIT Technology has a substantial operational presence.
The rapidly growing middle class and increasing digital adoption in Vietnam present a significant market opportunity, with its 98 million population.
VIG aims to leverage this investment to become a leader in the Southeast Asian EdTech and FinTech industries, meeting the increasing demand for innovative financial and educational solutions.
"This investment in LIT Technology signifies a strategic expansion of VIG's IT capabilities from EdTech to FinTech and enhances our geographical footprint in Southeast Asia, leveraging LIT Technology's strong presence in Vietnam,” Wu said.
