Vemanti buys 20 per cent of eLoan

US-based group to take holding in local fintech specializing in P2P loans to SMEs.

The Vemanti Group, Inc., a technology-driven holding company based in the US, has entered into an agreement to take a 20 per cent equity interest in the eLoan JSC, a local fintech company whose focus is to build a decentralized ecosystem of financial services starting with its business-centric online Peer-to-Peer (P2P) lending marketplace.

"We believe the immediate future of the Internet is a decentralized economy model followed by the implementation of blockchain technology. We like companies that are already earning revenues and working to create new revenue streams. Basically, revenue first and then blockchain second instead of the other way around. This validates their business model as everything comes down to execution and operational efficiency. eLoan certainly fits our investment strategy. On a larger scale, we see this as a strategic investment with metrics beyond numbers. We are very excited," stated Tan Tran, CEO of Vemanti Group.

Based in Ho Chi Minh City, eLoan is a P2P lending marketplace established in December 2017 that match investors with borrowers, allowing anyone to lend money directly to small and medium-sized enterprises (SMEs).

It is the first P2P lending company in Vietnam to focus purely on serving SME clients with short-term loans. Businesses can borrow up to $250,000 for terms of up to six months, with the company determining the interest rate, which runs from 12 to 20 per cent, based on risk and term. Unlike banks, the approval process is much quicker, with a decision made in as little as 24 hours. Individual and institutional investors provide all or part of the loan sought. Investors make money from the interest charged and are not charged a fee, with eLoan earning revenue by charging borrowers for each loan.

“We see a $100 billion market with very little competition,” said Mr. Trung Vo, CEO of eLoan. “Demand is unbelievable. Our banking and regulatory experience combined with an intelligent data collection and risk analysis process via an AI-driven platform gives us an advantage few can match. We’re out to acquire relationships, not clients. The idea is to help SMEs with short-term working capital, but the real objective is to embed other applications and to turn data into insights and give clients the context they need for faster, better-informed business decisions as they grow. We’re delighted to have Vemanti Group on board as an investor and a partner to help us expand beyond the local footprint.”

A cash and stock exchange will be executed for the 20 per cent equity interest, with options for more, along with a corporate board seat. The investment will be made through eLoan’s parent company, Directus Holdings, a Nevada-based company. The transaction is expected to be closed in the third quarter, subject to agreements on closing documentation, the verification of all records, confirmation of the transferability of ownership, and approvals from shareholders, the Board, and other regulatory agencies. Once finalized, additional details on the transaction will be included in the associated filings.

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