A Hong-Kong based start-up firm has announced that it has received $115m from US investors following a financing-round which was led by Chinese private equity fund New Margin Capital. TNG Wallet says the investment will be used to accelerate the expansion of its services across Asia.
In addition to this, the organization has expressed its interest in using the money generated from the US investment which was described as ‘record-breaking’ to invest in cutting-edge new technologies like AI and Block-Chain as well as acquiring other firms.
The financing round has been described as astronomical even for Chinese terms, and the investment garnered makes the start-up company a ‘half-unicorn’, with its valuation now estimated to be $565 million. TNG’s e-wallet is one of several hugely successful services rolled-out by the firm in Hong Kong. Its application enables users to pay bills and shop at partner merchants. It also allows peer-to-peer transfers.
An indication of the popularity and success of TNG’s Wallet application has been downloaded over 600,000 times, that transpires into a monthly transaction volume which exceeds $80M. TNG’s strategy is to build its strength in international money transfers. It’s formed what is described as the ‘Global E-Wallet Alliance’ that covers Hong Kong and twelve around nations which include China, Indonesia, Philippines, Singapore, Malaysia, Thailand, Vietnam, India, Sri Lanka, Bangladesh, Nepal and Pakistan.
What this e-commerce alliance means is that localized partner apps in each country can transfer and withdrawals across networks. For example, in Indonesia, TNG’s partner app is called InDompet, in Singapore, its Xin Wallet, and so on.
TNG CEO Alex Kong also disclosed that it is close to sealing deals in countries such as Indonesia, Malaysia Singapore and the UK relation in relation to acquiring e-money licenses which are a necessity in order to do business in those countries. One of TNG’s primary sources of income is through remittances. For example, ex-pats in Hong Kong sending money home to their families.
Figures released have indicated that TNG amasses a 70% market share of the remittances that flow between Hong Kong and Indonesia and the Philippines respectively. Whilst cash withdrawals are free, TNG does acquire a transfer fee although its 15% cheaper than normal remittance fees.
Kong founded TNG in 2013 – and the wallet was launched in 2015 after a period of R&D. The Global Wallet Alliance was only formed last year. TNG employs around 300 people, says the firm’s spokesperson. Other strategic investors include Nogle Group from Taiwan, and Infinity-KBR Group.