F88, a Vietnamese financial firm, has staged a stunning reversal and posted a net profit of $1.2 million in the first quarter of 2024. This remarkable transformation comes after the difficult year 2023, when the company experienced a net loss of $20.7 million. Here, we are talking about Mekong-backed F88 Bounces Back with $1.2 Million Profit in Q1 of 2024.
Here, we are talking about Mekong-backed F88 Bounces Back with $1.2 Million Profit in Q1 of 2024:
Survival Strategies and Recovery
F88 cites the following strategies that were initiated at the end of 2023 as the reason behind its survival:
Risk Management and Quality Loans
F88 insisted on higher-quality loans, enhanced risk management, and improved loan retrieval methods. Consequently, the company lowered its net write-off costs by 46% year-on-year in Q1 2024.
Increase in Customer Growth
The company received a 9% increase in the number of new customers, which resulted in the company beating its Q4 2023 revenue target by 6%. This growth was 2% higher than the previous quarter’s peak.
Profit Surge
F88’s post-tax profit jumped to 31 billion Vietnamese doing ($1.2 million) in Q1 2024. Debt collection methods also played a major role in achieving an 89% customer approval rate, which resulted in a 91% overall customer satisfaction rate.
Economic Recovery
F88’s development story is not unlike Vietnam’s general economic recovery. The country’s gross domestic product (GDP) grew by 5.66% year-on-year, exceeding the pre-pandemic level and growing faster than in the period from 2020 to 2023.
Future Prospects
In the year 2023, F88 struggled through certain challenges, such as police raids conducted at their office because of the company’s alleged act of extortion on the users to recover their debts. The planning of the company includes:
- Expand Partnerships: The F88 vision is to expand its strategic partnerships to improve its services further.
- Product Refinement: The company will keep enhancing its financial products.
- Performance Improvement: F88 believes that overall performance can also be enhanced.
F88 offers various financial services, such as currency transfer, credit, and insurance. That is why companies like F88, which is backed by Mekong Capital through the Mekong Enterprise Fund, can expect more growth and stability in the region.
Conclusion
The transformation of F88 is an inspiring story of how strategic changes and sheer determination can overcome any odds. F88 can be a good role model for other businesses to look up to as Vietnam’s economy gradually gets back on its feet.
