Digital bank Timo said it has secured US$20 million in fresh funding.

The investment round is led by Square Peg, a leading global venture capital firm that has invested in unicorns such as Canva, FinAccel and Airwallexand includes Jungle Ventures, Granite Oak, FinAccel, Phoenix Holdings, and other super angels.

Established in 2015, Timo is Viet Nam’s first digital bank and has steadily grown to become the leader in the industry. In 2019, it announced a strategic partnership with Viet Capital Bank, further accelerating its growth.

It was the first bank in Viet Nam to offer electric know your customer (eKYC) services.

Henry Nguyen, its CEO, said: “This funding round is not only a signal that digital banking is the future in Viet Nam, but also demonstrates investors’ confidence that Timo is leading this important sector.

“We are deeply committed to our mission of setting the benchmark for modern banking in Viet Nam while bringing greater financial inclusion and accessibility to the large majority of the population which remains unbanked. We are delighted to have world-class investors … joining us on our journey.”

With over US$1 billion in assets under management, Square Peg has backed category-defining companies including Southeast Asian fintech giants Kredivo, StashAway and Pluang.

It has invested over $200 million in Southeast Asian start-ups.

Tushar Roy, Square Peg Southeast Asia partner, said: “We have been impressed by the Timo team’s vision to transform banking in Viet Nam. In a market with almost no other independent, digital-native players, Timo stood out from the crowd. It is a mission-oriented team aligned around creating beautiful experiences for customers and bringing more people in Viet Nam into the financial ecosystem. We are excited to support Timo on its journey.” — VNS