Gimo raises USD1.9M to help workers in Vietnam get faster access to wages
GIMO began life in 2019 as a digital lending platform and then subsequently pivoted to focus on earned wage access to be able to plug the payday gap for Vietnamese workers. Today, GIMO serves over 25,000 Vietnamese workers through over 23 different companies.
GIMO recently raised USD1.9M from Integra Partners and Resolution Ventures. Gimo will use the money to build out its core operations, improve risk management competencies, and integrate advanced technologies such as data analytics and artificial intelligence to enhance customer experiences.
According to the World Bank, 69% of Vietnamese are unbanked. And even among those who are able to access banks, many do not qualify for loans from conventional financial service providers. This has led many workers to borrow from loan sharks or expensive payday loan options to pay for bills or cover for unexpected events. In Vietnam, there are more than 60,000 criminal and harassment cases related to loan sharks and blue-collar workers every year. Workers forced to turn to these services suffer from 400% – 1,000% per annum interest rates together with harassment risks.
GIMO believes its services can help boost financial inclusion by giving workers access to what is already in their earnings and help “level the playing field” for hourly workers. The app allows workers to withdraw their income instantly for a small, flat fee. Through GIMO, employees can access their wages as they earn it without needing to worry about paying usury rates.
According to GIMO’s Co-founder and CEO Nguyen Anh Quan, the new investment will help the company improve the financial stability and resilience of blue-collar workers, as well as fast-track financial inclusion in Southeast Asia. Nguyen said,
“Blue-collar workers are among the most vulnerable to financial distress. When unexpected bills arise, they don’t have a lot of safe and affordable options. GIMO looks to change that. By helping workers get paid as they earn it, we hope to give them the peace of mind to focus on what matters.”
Resolution Ventures is proud to support GIMO as they tackle the challenge of giving employees control over payday and create a more equitable ecosystem that encourages the inclusion of underbanked workers. Managing Partner, Sam Gibb said,
“We look forward to following along on GIMO’s journey as they continue to grow and provide millions of Vietnamese timelier access to their salaries, thus helping them address urgent financial needs while avoiding predatory lending.”
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