IPO To Drive Financial Inclusion Ambitions of AND Global’s Mongolian Subsidiary, LendMNby Company Announcement February 21, 2018
Singapore registered fintech startup AND Global today announces the upcoming initial public offering (IPO) of its Mongolian subsidiary LendMN, a smartphone-based instant lending service provider.
The IPO will launch on February 20, 2018 on the Mongolian Stock Exchange, following LendMN’s monumental success over the past year.
LendMN brings emergency loans to consumers who are either under-banked or are totally outside of the formal financial system. Since its soft launch in January 2017, the company has issued $9.5 million in loans to roughly 28,800 active borrowers.
Thanks to the region’s high demand for financial services coupled with the company’s highly capable AI algorithm, it has witnessed 70% month over month growth from its customer base in Mongolia. The LendMN platform currently distributes more than 1,500 loans per day with a repayment rate of approximately 98.2%, and boasts a 4.6 star rating in the Google Play store.
Less than one year since its commercial launch, LendMN will raise $2 million USD in a local IPO scheduled for February 20, 2018, with the intent to expand its service to the entire under-banked population within Mongolia. The company will issue 200 million shares in total, corresponding to a 25% stake in the total equity of the company. Strategic acquirers, including Seoul based Rhinos Asset Management, have announced their intents to purchase shares worth $1 million USD, for a 12.5% stake in the company.
With LendMN, access to a loan takes customers just 5 minutes on a mobile phone. Subsequent loans take less than 1 minute to process, making lending almost instantaneous. Credit limits can increase and monthly fees decrease for repeat customers depending on their repayment behaviors. What’s more, there is no interest rate — only a single fee for tech and service costs. The high repayment level is achieved using proprietary machine learning, which analyzes users data to calculate their capability to repay along with their willingness to pay.
In Mongolia, banks charge an average of 22.8% APR on loans requiring collateral, and loan sharks can charge upwards of 10% per week. This makes loans inaccessible and difficult to repay for thousands of people across the country. For this reason, LendMN offers its users a new level of financial freedom through a monthly fee without requiring them to post collateral or enduring sky-high interest rates.
“We are offering people convenient, fast, collateral-free loans that they can afford to pay back. With the introduction of our IPO we can bring our technology to more areas of the local market where so many have been forgotten, bringing banking to those who need it most,”
Anar Chinbaatar a Founder of AND Global.
There are still 2 billion citizens throughout the world who do not have access to banking or accessible loans. Having achieved strong product market fit in Mongolia, AND Global hopes to eventually replicate this model to bring a suite of financial services for Japan, the Philippines and the rest of Southeast Asia.
Featured image via Pixabay