Xendit Philippines raised $300 million from its recently concluded Series D funding round to boost the local startup ecosystem through financing and other assistance as a way to further grow the digital economy of the country.
Yang Yang Zhang, managing director of the financial technology company, said they want to increase the funding being secured by Philippine startups to help them increase their footprint.
“We’ve invested in Philippine startups on the ground. We want to continue to do so by putting our capital directly into other Philippine startups in the fintech scene and in other verticals as well so that we can make this digital economy grow faster,” she said during an online briefing on Friday. Zhang also announced that Xendit would be introducing a short-term working capital loan facility this year to extend financing to enterprises.
Apart from this, Xendit wants to connect local startups to global investors.
The fintech firm, with the additional capital, also seeks to team up with the government for digitization initiatives and provide innovative insights.
A portion of the equity infusion will go to Xendit’s corporate social responsibility programs as well.
For one, the company aims to create more opportunities for women in technology through educational programs. In line with its financial inclusion initiative, Xendit is also set to provide nonprofit organizations assistance for their payment needs, including fee waivers. The investment round was led by venture capitalist Insight Partners and technology-focused investment manager Coatue. In total, Xendit has received $538 million in funding already.
“We think Xendit has a clear, wide space to drive a very large outcome on the back of these various superior products, very large market opportunity [and] strong execution,” said Insights Partners managing partner Nikhil Sachdev. Xendit offers payment solutions, enabling businesses to accept payments and disburse payroll, among others. Zhang said that Xendit PH has “sustained 30 percent month-on-month growth in payments volume since the beginning of last year.”
“We came here with this vision of making the Philippines a core market and being able to grow deeply, growing our roots into the Philippine infrastructure,” Zhang said.
Xendit was officially launched in the Philippines in December 2020.