Client
A British asset management firm with offices around the world.
Issue
The client was evaluating an investment opportunity into one of Vietnam's digital payment companies. However, the client needed a clearer insight into the future trajectory of digital payment in Vietnam and where the target investee was positioned in the market both now and in the future. Financial and user growth projections for the potential investee needed validation. And any red flags had to be highlighted, with a particular focus on user growth assumptions, challenges to profitable growth, regulatory roadblocks, and competition.
Approach
We focused the analysis on a detailed, data driven understanding of the current market state, user base, and end uses for digital payment such as bill payment, e-commerce, etc. This market and customer focus provided a quantifiable underpinning to the market analysis, allowing for bear, base, and optimistic user base and financial projections. Key competitors were reviewed in-depth to understand their market strategy and likelihood of emerging as a winner in a future consolidated market landscape. We conducted extensive interviews with leading players and stakeholders across the digital payment ecosystem to understand the current state of the market, developing a clear understanding of the key market drivers and barriers. Finally, we carefully reviewed the impact of the regulatory environment on the future shape of the market as e-wallet licenses were being restricted, driving M&A activity in the market and strengthening the power of local players.
Engagement ROI
Our work on a time-sensitive and data-intensive project gave our client the confidence they needed regarding their investment decision, allowing them to clearly understand the downside and upside risks present with this potential investee in Vietnam's digital payment market.