Philippine Fintech Startup Backed by Peter Thiel Raises $31M and Aims to Be a One-Stop-Shop for Southeast Asia’s Financial Needs
Manila-based fintech startup PayMongo, backed by the likes of PayPal co-founder Peter Thiel, payments giant Stripe and famed Silicon Valley accelerator Y Combinator, has raised a $31 million Series B funding round dollars, bringing the total investment in the three-year startup to nearly $46 million.
“This investment is a testament to our growth and the continued growth of our merchants,” PayMongo co-founder and CEO Francis Plaza, a 2020 Forbes 30 Under 30 Asia alumnus, said in a statement. “With this Series B, we will invest more in the success of our merchants by giving them more ways to transfer money online seamlessly.”
Investors in the Series B funding round include Tinder co-founder Justin Mateen’s JAM fund and Philippine venture capital firms ICCP SBI Venture Partners and Kaya Founders, which is led by billionaire family member Lisa Gokongwei. controls the JG Summit conglomerate. Existing investors Global Founders Capital and SOMA Capital, both based in San Francisco, also participated in the round.
“As one of PayMongo’s early investors, I’ve seen their journey from making payments simpler for a handful of businesses to a business that thousands of merchants depend on for their day-to-day operations,” Mateen said in the communicated. “I’m excited about their progress and excited to once again support the team as they drive greater economic opportunity through the digital economy.”
The latest round comes less than a year after PayMongo raised $12 million in a Series A funding round. In 2019, the startup raised $2.7 million in seed funding.
PayMongo, winner of last year’s Forbes Asia 100 to Watch, offers integration tools that allow businesses to accept a range of digital payment options, including credit cards and e-wallets, as platform which Plaza described as “Stripe for the Philippines”.
The startup claims that since its Series A funding round in 2020, it has tripled merchant base growth and quadrupled growth in monthly transaction volumes. Going forward, PayMongo will target small and medium-sized businesses which, along with micro businesses, make up 99% of businesses in the Philippines, but are historically underserved by traditional payment providers. PayMongo also said it aims to reduce entry barriers for Filipino businesses in the digital economy.
“While accepting payments is crucial, it’s just one of the many services entrepreneurs need to build a successful online business,” Plaza said. “Our goal is to create a one-stop-shop for all of these financial needs in the Greater Southeast Asia region, starting with the Philippines.”
The Philippines was Southeast Asia’s fastest-growing digital market in 2021, according to a report by Google, Singaporean public investment firm Temasek and consultancy Bain & Company. The country’s internet economy is expected to grow from $17 billion in 2021 to $40 billion by 2025, according to the report, thanks to a surge in the adoption of digital services.
As consumers and merchants in the Philippines embrace digital platforms, spurred by the Covid-19 pandemic, the report also suggests that transaction activity is on course for the highest record in recent years, as that investors get used to the “new normal” in trading. and fund digital services.