Japanese internet firm GMO Internet Group (GMO) and its venture capital partner, GMO VentureParnters (GMO VP), announced today that they will be launching a FinTech fund. The GMO Global FinTech Fund (GMO GFF) will, as the name suggests, invest in FinTech firms.
GMO is no stranger to FinTech industry. For instance, the firm has been investing in a number of different areas within the trading industry.
The Japanese firm owns GMO Click, a large securities trading broker. Finance Magnates research has consistently shown that it is one of the largest FX brokers in the world by trading volume.
More recently, GMO launched GMO coin, a cryptocurrency exchange. While some argue that Japan’s embrace of crypto is over-hyped, the move to open the exchange was a bold move for such a prominent company to make.
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Today’s announcement builds on such moves. GMO GFF appears to be starting its investment efforts by funding FinAccel Pte Ltd – an Indonesian retail credit provider.
GMO VP already has a level of experience in dealing with firms such as FinAccel. The venture capital fund has been operating since 2005 and has invested in a number of FinTech firms since then.
GMO GFF will look to invest in several specific niches within the FinTech industry. The firm will search for firms specializing in alternative lending, credit algorithm development and automation in the financial services industry.
Firms that receive investment will gain the support of GMO VP who can help them to expand in the Japanese market. For instance, the firm can work with GMO Payment Gateway, another GMO company, that can provide payment processing services for any FinTech firms that receive investment.