Xendit has committed to a new Series D fundraising round to increase its presence in the Philippines, promising to play a more active role in aiding local SMEs and startups, promoting women in tech initiatives, developing better payment options, and optimizing business procedures.
Xendit, one of Southeast Asia’s fastest-growing payments infrastructure platforms, made this pledge after recently completing a $300 million Series D fundraising round, increasing its total cash raised to $538 million. The round was co-led by Coatue and Insight Partners, with participation from Accel, Tiger Global, Kleiner Perkins, EV Growth, Amasia, Intudo, and Justin Kan’s Goat Capital.
“We are so excited to apply this latest round of funding to further our existing growth initiatives while investing into even more new initiatives to accelerate the Philippine digital economy. Not only will we double down on launching first-to-market payments solutions and building world-class financial infrastructure, but we will also partner deeply with regulators, create new opportunities for Filipina women in tech, and push the frontiers of fintech innovation,” said Yang Yang Zhang, CEO & Managing Director of Xendit Philippines.
Xendit, sometimes known as the “Stripe of Southeast Asia,” democratizes payment solutions for clients of all kinds, ranging from small sellers to MSMEs, growth stage startups, and even huge companies. Xendit, which is backed by some of Silicon Valley’s most notable investors, intends to serve as a beacon to attract more VC attention to the developing Filipino startup ecosystem.
“From a handful of scrappy multitaskers, our local team has increased continually as we service more and more Filipino businesses of all sizes,” Ms. Zhang concluded. We’re extremely thrilled to return our capital to the Philippines to help other Filipino entrepreneurs, form collaborations with local communities, and assist regulators with their digitalization aspirations.”
This new money would enable Xendit Philippines to devote additional resources to two crucial initiatives: empowering women in technology and subsidizing non-profit groups that directly benefit the local community.
“As a woman who has spent her entire career in male-dominated tech industries, I am deeply invested in lowering the barriers to entry for Filipina women interested in technology. Education has always been the fastest way to level the playing field, and I’m so happy that Xendit will be investing directly into making tech education and career training more accessible for Filipina women everywhere,” said Yang Yang Zhang, CEO & Managing Director of Xendit Philippines. ”
Xendit continues to seek new ways to give back to local communities, both directly and by empowering others who do so. Last year, the company offered discounted rates, shorter settlement time, and priority onboarding to those collecting donations for Typhoon Odette relief. Now, it pledges to continue extending this support for all qualified NGOs and non-profit organization.
Reinvesting in the Philippines
Since its inception in 2016, Xendit has continued its dynamic growth, increasing sales by more than 10% month-over-month globally and 30% month-over-month in the Philippines alone. Over the last year, Xendit tripled annualized transactions from 65 million to 200 million and increased total payment value from $6.5 billion to $15 billion.
“Payments are a crucial component for online businesses and we believe Xendit is capturing a formative opportunity in Southeast Asia,” said Luca Schmid, General Partner at Coatue. “Xendit’s deep local expertise, modern tech stack and customer-centric approach has created a digital payments platform that is helping transform how Southeast Asian businesses transact. Coatue is delighted to partner with the Xendit team for the next phase of their journey.”
However, in updating hyperlocalized payments infrastructure for the Philippines, Xendit is not only concerned with its own expansion. The business is making strategic investments in Southeast Asia startups and SMEs, particularly in the Philippines.
Xendit made a strategic investment in top local payment gateway, Dragonpay, to establish a relationship to overcome significant and long-standing dependability and infrastructure barriers as part of its development into the Philippines, where it is now one of the major payments companies.
Based on the success of this relationship for both Dragonpay and Xendit over the last year, Xendit is dedicated to investing in additional local Filipino entrepreneurs that share its concept of community-minded growth and scalable, customer-centric solutions.
After establishing a presence in the Philippines and Indonesia, Xendit is poised to revolutionize and construct digital payment infrastructure in other countries of Southeast Asia.
“The payments infrastructure market opportunity in Southeast Asia is massive, and Xendit is capturing it with its world-class payments technology,” said Nikhil Sachdev, Managing Director at Insight Partners. “The company’s strong leadership team and excellent customer reviews, coupled with its incredible traction across Southeast Asia, have made Xendit the dominant player in the region. Insight is thrilled to partner with the team as they scale their operations.”
Xendit’s competitive difference, with over 3,000 clients, is its intimate awareness of local customer demands mixed with global technology. This enables Xendit to provide hyper-localized products to assist startups in scaling while also supporting some of Southeast Asia’s top merchants, such as GrabPay, Ninja Van, Qoala, Unicef Indonesia, Cashalo, and Shopback.
