Cloud-enabled smart education platform operator Victor Group Holdings (ASX: VIG) has entered into a strategic investment agreement to acquire a 25% ownership stake in LIT Technology Pty Ltd for $2 million. This marks its transition from being an exclusively e-learning platform to dipping its toes in buy now, pay later and FinTech at large.
This acquisition will be finalised by issuing 80 million shares for $0.025 per share to the current shareholders of LIT, who are predominantly independent individuals unaffiliated with Victor Group. Before finalising the deal, Victor Group conducted a comprehensive due diligence process, thoroughly assessing LIT’s business model and reviewing its legal and financial records.
The due diligence procedure concluded successfully. The Share Sale Agreement is contingent upon shareholders’ endorsement and includes standard clauses for transactions of this nature. Despite the expansion into LIT, the core focus of the Company remains on delivering Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and educational cloud services in China.
Managing Director/CEO of Victor Group, Zhenxian (Brady) Wu, said, “This investment in LIT Technology signifies a strategic expansion of VIG’s IT capabilities from EdTech to FinTech and enhances our geographical footprint in Southeast Asia, leveraging LIT Technology’s strong presence in Vietnam.”
LIT Technology is headquartered in Australia with operational branches in Singapore and Vietnam. It has solidified its presence in the Vietnamese market. Among its services is Buy Now Pay Later (BNPL), via the LitNow app, which provides consumers with deferred payment options, streamlining their shopping experience and ensuring financial manageability.
Plus, LIT is on the brink of launching a FinTech platform in collaboration with Shouqianba, a merchant finance solution and mobile payment provider. This strategic partnership aims to leverage the momentum of the BNPL service, transforming digital transactions for merchants and end-users alike. After all, come 2028, the gross merchandise value of BNPL in Vietnam is set to surpass $15 billion.
In addition, LIT is venturing into micro-lending for small and medium enterprises (SMEs) in Vietnam. This move aligns with the evolving fintech landscape, aiming to cater to underserved segments of the market. These initiatives collectively form a comprehensive suite of financial solutions, underscoring LIT’s commitment to innovation and market leadership.
This investment will propel Victor Group’s SaaS, PaaS, and IaaS education cloud platforms and technologies into the realm of financial technology. This strategic move not only grants Victor Group a strong foothold in Southeast Asia but also specifically positions it in Vietnam, where LIT Technology holds substantial operational sway.
Vietnam’s rapidly expanding middle class and its burgeoning digital adoption rate present a lucrative market opportunity, fueled by a population of 98 million. Victor Group aims to capitalise on this investment, aiming to emerge as a frontrunner in both the Southeast Asian EdTech and FinTech sectors. By addressing the mounting demand for innovative financial and educational solutions, Victor aims to solidify its position as an industry leader in the region.
Alinda is a Business Reporter for The Sentiment
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