Local firm VPBank Securities is providing the funding and will own shares in BE Group’s parent upon closing of the round, according to a statement from the technology company Wednesday.

Competition in Vietnam’s ride-hailing and delivery markets is intensifying as increasing smartphone usage fuels demand for such services. Beside Singapore-based Grab, the market leader in Vietnam, Be Group faces rivalry from Indonesia’s GoTo Group which expanded to the country of about 100 million people a few years ago.

Be Group said it will use the funds to expand its ride, delivery and digital financial services, as well as to venture into new markets and segments of the consumer and transportation sectors.

The company expects to deliver 1 billion rides on its platform by 2026, up from 120 million last year, and to surpass US$200 million in annual gross revenue in the same period. Since launching in 2018, Be Group has expanded its operations to 40 cities and provinces across Vietnam.

The upstart aims to more than double its active users to 20 million by 2026, and targets positive earnings before interest, taxes, depreciation and amortization in the 2024 financial year, according to the statement.