Stripe Leads Filipino Payment Platform PayMongo’s US$12M Series A

The funding will enable the rollout of new features and products as part of PayMongo’s aggressive growth strategy

Philippines-based B2B online payment platform PayMongo has raised US$12 million in its Series A round of financing, the company announced in a statement yesterday.

The funding was led by American fintech unicorn Stripe, with participation from its existing investors Y Combinator and Global Founders Capital, who were joined by new investor New York-based early-stage venture firm Bedrock Capital, the statement said.

It added that the fresh capital grows PayMongo’s total funding pool to nearly $15 million a year since the company was launched in June 2019 with $2.7 million in seed funding.

The Series A round will enable the company to roll out new features and products as part of its ‘aggressive product roadmap’, and bolster its product, design, and engineering teams, the statement further said.

“The Series A funding builds on an exceptional first year for PayMongo. We’re thrilled to have amazing investors to support our mission of building the digital economic infrastructure in the Philippines,” CEO and Co-founder of PayMongo Francis Plaza said in the statement.

“We are committed to build the best payment experience for Filipino businesses,” Plaza added.

PayMongo receives a boost amid the growing fintech landscape in the Philippines

PayMongo offers an enterprise-level payments solution for online businesses, allowing companies to receive payments from customers via cards, e-wallets, OTC or from Coins.ph. The company charges a fee of 1.5% to 3.5% plus an additional flat fee of PHP10-PHP15 depending on the mode of payment.

Plaza, along with Co-founders Edwin Lacierda, Jaime Hing, and Luis Sia, envisioned the company as the Philippines’ version of Stripe.

The startup is incubated by Y Combinator as part of its 2019 summer batch. Y Combinator also counts as PayMongo’s seed investors, joining Stripe, Founders Fund, Global Founders Capital, and angels including Peter Thiel.

The statement noted that the volume of PayMongo’s transactions has spiked 15 times this year, and the company had on boarded thousands of Filipino businesses within a month of the Philippines lockdown in March.

“Given the disruption caused by COVID-19, a service like theirs is simply vital for the country’s businesses and economic future,” APAC Business Lead at Stripe Noah Pepper said in the statement.

“We’ve been impressed with the PayMongo team and the speed at which they’ve made digital payments more accessible for so many businesses across the Philippines. We fully support their vision to bring many more Filipino businesses online,” Pepper added.

The Philippines is one of Southeast Asia’s biggest Internet economies. Digital products and services are expected to drive 40% of the country’s GDP by 2021, driven by the growth in fintech and digital commerce solutions.

Digital payments solutions in the Southeast Asian region are expected to cross $1 trillion by 2025, with the Philippines recording the highest expected annual growth rate between 2019 and 2025 at 13%, according to a Bain report.

Moreover, 95% of SMEs in the Philippines surveyed by the report expressed interest in consolidated fintech solutions, the most receptive response across all surveyed Southeast Asian regions in the report.

PayMongo noted in the statement that the value of digital transactions in the island nation had surged by 42% percent between January and April 2020, and is expected to meet targets set by the Bangko Sentral ng Pilipinas, the central bank of the Philippines.

“PayMongo is enabling businesses to meet rapidly growing online demand with intuitive, easy to use products,” Principal at Bedrock Capital Spencer Peterson, said in the statement. “We’re impressed by the pace at which this team executes and thrilled to support their vision for the future of digital payments and commerce.”

Header image by cottonbro from Pexels

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

5 Companies That Have Already Announced Job Cuts This Year

Layoffs in 2023: 5 Companies That Have Already Announced Job Cuts This Year

The layoff spree at tech giants is bleeding into a new year. It has been just three weeks since we entered 2023, yet the media is buzzing with disturbing numbers about people being laid off by tech companies: At least 104 tech companies let go more than 26,000 employees. This means, more than 1,600 tech employees were dismissed per day in the past couple of weeks. Let’s take a look at the top tech companies that are laying off aggressively.

Goblin Mode

Decoding the World’s Obsession with “Goblin Mode”

Do you find yourself struggling to maintain a positive and productive attitude at work? Are you becoming increasingly irritable or disengaged from constantly feeling overwhelmed and stressed? If so, you’re not alone. Many people experience this state of mind, and some turn on their ‌ “goblin mode” to cope with it. The term “goblin mode” gained popularity in February 2022

Instagram vs YouTube—Which Is Better for Your Business?

Instagram vs YouTubeWhich Is Better for Your Business?

With the rise of social media platforms, like Instagram, TikTok and YouTube, businesses have gained new opportunities to reach their potential customers. It’s important to note that Instagram and YouTube are not just for entertainment; they can be used as powerful tools for marketing and creating brand awareness. Many individuals already use YouTube, TikTok and more to earn money.

What Is Ambient Computing? How Does It Affect Our Lives?

What Is Ambient Computing? How Does It Affect Our Lives?

Picture this: it’s five degrees Celsius outside, and you are freezing, but instead of you adjusting your thermostat, your house automatically realizes that it needs to be warmed up and changes the temperature accordingly. That is what ambient computing is all about. Ambient computing (also called ambient intelligence) refers to technology immersed into your environment. You don’t have to consciously interact with it using screens or keyboards.

How Can AI Be Used in Governance?

How Can AI Be Used in Governance?

One of the many things that artificial intelligence (AI) is capable of doing is helping governments function smoothly. In a previous article, we discussed that, over time, AI would be responsible for more decision-making. As such, it can help governments worldwide make tough decisions by ridding the decision-making process of human biases.

Top 3 Cheapest Tesla Alternatives to Consider Buying

Top 3 Cheapest Tesla Alternatives to Consider Buying

Those who care about the environment have progressively shifted to electric cars. In December 2022, electric car sales reached 11% of the car market worldwide. These cars not only have significantly fewer carbon emissions but are also cheaper to maintain. Some countries, such as New Zealand, the U.K.