MoMo Mia! Does this VN unicorn have the recipe for super-app success?

The Top Up is Tech in Asia’s free newsletter that breaks down the biggest stories and trends in fintech. [Read from your browser]( The Top Up 💵 Welcome to The Top Up! Delivered every Wednesday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in fintech. If you’re not a subscriber, get access by [registering here](. Written by Samreen Ahmad Fintech Journalist Hello {NAME} I don’t remember the last time I withdrew cash from an ATM – all my transactions are done via digital wallets these days. Since I live in one of India’s metropolitan cities, which are more mature markets for fintech, maybe it’s a privilege that I get to say this. That said, a closer look will show that the growth of digital transactions is now driven by Tier 2 and Tier 3 cities in the country. India’s fintech sector has become a crowded market, regularly tapping into billions of dollars from investors. But fintech adoption seems like a global phenomenon. Not too far away from India, Vietnam also has a burgeoning fintech space, which attracted over US$500 million in funding in 2021 alone. One player is Vietnam’s latest unicorn, MoMo. With a user base of 31 million, the fintech firm can pin its early success down to its mobile-only approach. But experts say that fintech companies cannot grow on digital wallet services alone, as the margins are too thin. That may be why MoMo is now trudging on a path toward its super-app dreams. In this week’s Big Story, my colleague Huong dives into MoMo’s super-app ambitions. Can the company reinvent itself to survive intense competition in Vietnam? Read on to know more. -- Samreen THE BIG STORY [Analyzing MoMo’s super-app ambitions]( Image credit: Timmy Loen We dissect the challenges for the Vietnamese unicorn as it plows ahead in the country’s fintech battleground.. THE HOT TAKE  Green financing takes off in Indonesia Here’s what happened: - Indonesian fintech firm Akulaku is considering receiving US$100 million in green financing - The source of the funds is a Singapore-based entity - Funding may be channeled to consumers wanting to purchase electric vehicles Here’s what it means: Akulaku, an Indonesian digital banking and finance unicorn, is considering receiving US$100 million in [green bonds from a Singapore-based entity](. This comes on the back of its recent [US$100 million series E fundraising]( that saw its valuation rise to US$2 billion. Indonesia is no stranger to green financing: The country’s government has issued [at least four green bonds]( since 2018, and the Asian Development Bank approved a [US$150 million loan]( to support green infrastructure projects in the archipelago just last month. However, the private sector has been less active, especially compared to peers such as Thailand. If it pushes through, the deal with Akulaku will mark a turning point. As a private sector company that lends to consumers, Akulaku can link green financing directly to consumers’ wallets and their purchasing decisions. The impact this will have is uncertain. The Indonesian consumer is generally less aware of climate change than those in other countries. A [survey]( conducted by the Yale Program on Climate Change Communication found that only 32% of Indonesian respondents claimed to know either a lot or a moderate amount about climate change, the second-lowest of the 31 countries surveyed. Additionally, Indonesia is also among the top 10 countries that believe more information is needed about climate change to form a firm opinion. Companies like Akulaku that have a direct relationship with the consumer and can offer them financing, specifically for purchasing sustainable products and services, are well-positioned to educate consumers. Financing electric vehicle (EV) purchases is a good place to start. Indonesia is one of the markets with the highest potential for EV adoption in the world, [according]( to McKinsey & Company. But EVs are just the tip of the iceberg. Products ranging from mattresses to iPhone cases can have an eco-friendly angle. Of course, one of the thorny questions is who gets to decide what is green and what isn’t - will that responsibility lie with companies like Akulaku as well? Amid a growing chorus warning against [“greenwashing”]( and as green financing increases its market share, these questions will become more important. US$100 million represents under 5% of the US$2.2 billion in credit that Akulaku disbursed in 2021. Yet, it would be a small step in the right direction to shape local attitudes and behavior toward climate change. -- [Simon]( NEWS YOU SHOULD KNOW Also check out Tech in Asia’s coverage of the fintech scene [here](.  1️⃣ [Tinder co-founder leads $29m round of SG fintech firm]( The fresh funds will fuel Volopay’s foray into two regions: Asia Pacific and the Middle East and North Africa.  2️⃣ [Tencent-backed fintech firm nets $100m in series C money]( Niyo said it has been adding more than 10,000 new users to its platform every day.  3️⃣ [Uzbek fintech startup nets $1m in seed funding]( Iman's Islamic finance operations have been certified as compliant with Sharia law.  4️⃣ [Singapore fintech firm M-Daq to buy cross-border payments startup]( M-Daq aims to integrate Wallex Technologies with its foreign exchange solution Aladdin. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? 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