Based in Vietnam Anfin wants to turn more people into stock investors with features like fractional trading and in-app communities. Y Combinator alumni announced today that they have raised $4.8 million in a Series A led by angel investor Clement Benoist, founder of Stuart and Not So Dark and Y Combinator. Rebel VC, Kharis Capital, Newman Capital, First Check Ventures, Micro Ventures, Springcamp and AngelHub also participated in the round.
The funding will be used to develop Anfin’s products, especially its social investment features, including one that allows users to host and join live audio rooms. The app’s own trading platform includes stock profiling and risk assessment. It also plans to offer more financial asset classes in addition to its current 300 stocks and nine ETFs.
Its fractional trading features allow users to start investing with as little as VND 10,000 (or around 40 US cents), giving them access to stocks they might not otherwise be able to afford. Like other investment apps aimed at Gen Z and millennial users (90% of Anfin users are aged 18-35), Anfin contains educational content about the basics of the stock market.
Anfin was launched in October 2021 by Hiep Nguyen, Phuoc Tran, Chi Pham and Michael Do. Its founders say it has since been downloaded more than a million times, partly due to increased interest in mobile banking and online investing during the COVID-19 pandemic. It currently has 100,000 funded accounts and the total transaction value has reached $5 million and $10 million.
Do told TechCrunch that Anfin’s founders became interested in the stock trading app “observing the gap between the growing demand for stocks as an asset class and the rise in the value of investing in the stock market. In particular, Vietnam changed the trading lot size from 10 shares to 100 shares, which meant that blue chip shares were worth between $400 and $600 for one full lot.”
As a result, Anfin’s founders saw an opportunity to lower the cost of investment by offering fractional shares and becoming a liquidity provider or charging the spread for instant settlement. Do added that fractional trading is Anfin’s most popular feature, with an average transaction value of $20.
One factor in Anfin’s favor is The goal of the Vietnamese government to increase the number of people who invest in stocks from 3% in 2021 to 5% in 2025 and 10% in 2030.
Anfin social investment product allows users to communicate with each other. It also includes a news feed ranking algorithm and the use of a bull-and-bear system that identifies and shows the best traders on the app, Do said.
“Introducing this feature directly into the app builds trust as the investment profile contains metrics that highlight the investor’s track record and risk level,” Do said. Eventually, the app will also include influencer-based incentives (Do said the team prefers the term “social investing” over “copy trading”).
Anfin is monetized through trading fees. Do said the app doesn’t believe in paying for order flow (PFOF) or selling its user data. Instead, it directly integrates with brokerage partners and places orders for its users through Vietnam’s regulated exchanges. It also has a subscription feature called Anfin VIP which gives the startup a source of recurring income.
In a prepared statement, Benoist said: “Democratizing access to exchange trading with a social layer through a simple and user-friendly product is certainly a response to the large untapped market in Asia. I have no doubt that this Series A funding will enable Anfin to expand beyond Vietnam and become a benchmark in social trading.”
Credit: techcrunch.com /