Indonesian buy now, pay later unicorn Kredivo Group has acquired a 100% stake in Timo, Vietnam’s first digital bank, in a deal that consolidates lending and digital banking infrastructure under one entity across two of Southeast Asia’s most active fintech markets. The acquisition positions Kredivo Group as a more integrated financial services player in Vietnam, combining its established BNPL technology with Timo’s licensed digital banking platform and existing customer base.
Key Facts At A Glance
- Kredivo Group acquired a 100% stake in Timo, Vietnam’s first digital bank, founded in 2015
- The deal was first reported by Tech in Asia on March 12, 2026; financial terms remain undisclosed
- Timo will operate as a department within Kredivo Group; the Timo brand will be retained
- Kredivo Group CEO Akshay Garg will oversee the combined entity’s operations
- Kredivo plans to invest approximately US$15 million in Vietnam over the next three years
- Integration will proceed in two phases: lending technology migration, then card-based payment products
- Timo operates in partnership with Viet Capital Bank; Vietnam does not issue standalone digital banking licences
- Vietnam’s fintech market is valued at US$4.33 billion in 2026 and projected to reach US$8.85 billion by 2031
Indonesian fintech unicorn Kredivo Group has acquired a 100% stake in Timo, Vietnam’s first digital bank, in a deal that adds licensed digital banking infrastructure to its existing buy now, pay later and digital credit operations in the country. The acquisition was first reported by Tech in Asia on March 12, 2026, citing sources familiar with the matter. Final paperwork has been signed, though the transaction had not been formally announced by either company at the time of reporting. Financial terms were not disclosed.
Timo was founded in 2015 by Don Lam, who also serves as chief executive of asset management firm VinaCapital. The bank offers payments, card services, investments, insurance, and installment loans, and was among the first financial institutions in Vietnam to deploy electronic know-your-customer services. In 2022, Timo raised US$20 million in a funding round led by Square Peg Capital, with participation from FinAccel — Kredivo Group’s former parent holding company — StashAway, Pluang, Airwallex, Jungle Ventures, Granite Oak, and Phoenix Holdings. A further US$10 million was raised from existing investors in 2023.
A Two-Phase Integration Strategy
Following the acquisition, Timo will operate as a department within Kredivo Group. The Timo brand is expected to remain in place as the consumer-facing digital banking platform, while Kredivo’s Vietnam lending operations are consolidated under it over time. Kredivo Group co-founder and CEO Akshay Garg is expected to oversee the combined entity.
The integration will proceed in two structured phases. The first involves migrating Kredivo’s lending technology stack into Timo’s platform. The second introduces card-based payment products, expanding the combined entity’s financial services offering beyond credit into day-to-day spending infrastructure. Phoenix Holdings, an early Timo backer, is expected to retain its stake in the entity following completion of the deal.
Kredivo Group has committed to investing approximately US$15 million in the Vietnamese market over the next three years as part of its expansion strategy in the country.
Vietnam’s Regulatory Context
A structural consideration shapes the deal’s architecture. Vietnam does not issue standalone digital banking licences, which means Timo operates under a partnership model with Viet Capital Bank as its licensed banking partner — a relationship that has been in place since 2019, when Timo transitioned from VPBank to Viet Capital Bank. This framework is common for digital-native financial platforms operating in the Vietnamese market and defines the regulatory boundaries within which the combined Kredivo-Timo entity will function.
Vietnam’s fintech market is valued at US$4.33 billion in 2026 and projected to reach US$8.85 billion by 2031, representing a compound annual growth rate of approximately 15.4%, according to Mordor Intelligence. Growth is attributed to an expanding domestic digital payment ecosystem, a government-operated fintech regulatory sandbox, and rising financial inclusion metrics across the country.
The Kredivo-Timo acquisition follows Kredivo Group’s February 2026 acquisition of GajiGesa, an Indonesian earned wage access startup, in a deal valued at up to US$5–6 million. Together, the two acquisitions reflect an accelerating consolidation strategy by Kredivo Group across multiple product verticals and markets in Southeast Asia.