Philippine Fintech Startup PayMongo Raises $31 Million, Aims to be A One-Stop shop for Southeast Asia’s Financial Needs
PayMongo fintech startup has claimed that it seeks to remove the obstacles to entering the digital economy for Filipino enterprises. “Our objective is to provide a one-stop shop for all of these financial needs across Southeast Asia, beginning with the Philippines.”
PayMongo, a Manila-based fintech firm backed by PayPal co-founder Peter Thiel, payments giant Stripe, and legendary Silicon Valley incubator Y Combinator, has acquired a $31 million Series B fundraising round, increasing the startup’s total investment to roughly $46 million.
In a statement, PayMongo co-founder and CEO Francis Plaza, a Forbes 30 Under 30 Asia alum from 2020, stated, “This investment is a tribute to our development and the continuous growth of our merchants.” “With this Series B, we will invest even more in the success of our merchants by providing them with new ways to move money easily online.”
Tinder co-founder Justin Mateen’s JAM Fund, as well as Philippine venture capital companies ICCP SBI Venture Partners and Kaya Founders, managed by Lisa Gokongwei, a member of the rich family that runs the JG Summit conglomerate, are among the investors in the Series B fundraising round.
Existing San Francisco-based investors Global Founders Capital and SOMA Capital also participated in the round. “As one of PayMongo’s early investors, I’ve witnessed their journey from simplifying payments for a handful of companies to becoming a firm that thousands of merchants rely on for day-to-day operations,” Mateen said in a statement.
“I’m encouraged by their development and delighted to rejoin the team as they create more economic possibilities through the digital economy.” The current fundraising round comes less than a year after PayMongo secured $12 million in a Series A round. The firm received $2.7 million in early investment in 2019.
PayMongo, named an honorary Forbes Asia 100 to Watch last year, provides integration tools for companies to accept a variety of digital payment choices, including credit cards and e-wallets, as part of a platform dubbed the “Strip for the Philippines” by the Plaza.
According to the business, it has increased its merchant base and quadrupled its monthly transaction volume since its Series A investment round in 2020. PayMongo will eventually target small and medium-sized firms, which, along with micro-enterprises, account for 99 per cent of businesses in the Philippines but have previously been underserved by traditional payment providers. PayMongo has stated that it intends to remove obstacles to entry into the digital economy for Filipino firms.
“While collecting money is vital, it is only one of many services that entrepreneurs want in order to develop a successful online business,” Plaza explained. “Our objective is to become a one-stop shop for all financial requirements across Southeast Asia, beginning with the Philippines.”
According to a survey by Google, Singaporean state investment firm Temasek, and consulting firm Bain & Company, the Philippines will be the fastest expanding digital market in Southeast Asia by 2021. According to the analysis, the nation’s internet economy is predicted to develop from $ 17 billion in 2021 to $ 40 billion by 2025, owing to substantial growth in the usage of digital services.
While the Covid-19 epidemic has encouraged consumers and merchants in the Philippines to embrace digital platforms, the survey also stated that deal activity is on course to achieve record highs in recent years, as investors have grown acclimated to the “new normal” in dealmaking. and provide funding for digital services.