PayMongo is a Philippines-based payment processing startup that has recently raised $12 million in Series A funding. The funding round was led by global payment processing giant Stripe, and participated in by members of a prominent collection of venture capital firms, including Y Combinator, Susa Ventures, and Global Founders Capital.
PayMongo is designed to help businesses in the Philippines to easily and securely handle payments, manage customer data and more. In addition, the company will use the funds to expand its services and hire new talent.
Philippines payment processing startup PayMongo lands $12 million Series A led by Stripe
PayMongo is a payments technology startup based in the Philippines, aiming to make digital payments accessible, reliable, and secure for everyone. Founded in 2018 by Vince Pestano, Francis Plaza, and Rax Massango, the company is working to provide digital payment solutions to Filipinos living in rural areas who have been historically underserved due to lack of sufficient payment infrastructure.
Funded by leading payment services provider Stripe, PayMongo recently secured $12 million in Series A funding led by Stripe — with participation from partners such as Recruit Company’s GA technology fund Co-Lab Capital and Foundation Capital’s Digital Currency Group — bringing the total funding raised so far to $13.9 million. The company will use this financing to expand its reach across rural Philippines by offering more payment options at both online and offline stores.
PayMongo has created an all-in-one online platform for receiving payments, producing an easy integration experience for merchants and customers. Their suite of services encompasses a range of payment methods including bank transfers, debit card processing and cardless transactions via QR codes used leveraging multiple banks’ APIs – making it easier for businesses operating within the Southeast Asian markets to accept digital payments through a single source solution.
Through their platform PayMongo provides various features such as development documentation library, allowing developers to integrate precise features to ensure their customers get the desired experience. Furthermore they offer analytical data insights that provide information on fees calculations allowing merchants better manage their financial resources. At the same time, traders can easily create invoices with minimal effort, increasing customer satisfaction rates and creating a more streamlined end user experience paired with improved financial awareness.
Summary of Series A funding
On April 15, 2020, PayMongo, a payment processing startup based in the Philippines, secured $12 million in Series A funding led by Stripe. This investment also included Y Combinator Continued Fund, Evolution Ventures, and CRCM Venture Partners.
PayMongo is a payment platform that enables merchants to accept online and offline customer payments. The company plans to use the Series A funds to continue growing its regional presence, invest in product innovation, add new capabilities to its online and offline platforms and expand its team. PayMongo also announced plans to launch a suite of International Payment technologies for cross-border companies operating within South-east Asia.
Series A investments are typically made when a startup has passed the early stages of seed capital investments and grown into its initial development phase. Consequently, this round of funding serves as further testament of PayMongo’s steadily maturing business model which is gaining traction with customers outside of their base in the Philippines.
The startup hopes that leveraging Stripe’s experience in processing alternative payment methods like Bancnet will better meet customer expectations by providing better coverage and access across different payment rails both locally and across South-east Asia while enabling smooth customer experiences on all channels.
Background of PayMongo
PayMongo is a Philippines-based payment processing startup that has recently secured $12 million in Series A funding led by Stripe. Established in 2019, the startup is based in Makati City and is focused on offering digital payment solutions to businesses in Southeast Asia.
PayMongo’s mission is to make it easier for businesses to accept payments across multiple channels without relying on expensive third-party solutions. Let’s look into how PayMongo plans to use the funding.
History of the company
PayMongo is a Philippines-based payment processing startup founded in 2018 by financial professionals and tech entrepreneurs. The company was created to provide businesses and customers in the Philippines with an easy, secure, and reliable way to accept payments through their platform. The company has since expanded its services beyond the local market to include companies from other markets such as China and Malaysia.
PayMongo was initially bootstrapped but has since raised $12 million in Series A funding led by Stripe. With this investment, PayMongo intends to expand its customer base and better serve existing investors. It also plans to invest in its technology infrastructure and customer service capabilities.
Over the past two years, PayMongo has achieved over 250% growth year-on-year as well as successfully launched new services such as repeating billing, split payouts, subscription payments, ecommerce checkout speeds up to 5x faster, dispute resolution management tools for merchants, multiple customer authentication methods for merchants’ benefit and customer analytics reports for data analysis for businesses. In 2020 alone, PayMongo processed over PHP 10bn ($201m) in transaction volume from over 50k sellers across industries ranging from healthcare retailers to ecommerce platforms.
With the continued success of their payment processing business model, PayMongo is poised for rapid growth and international expansion in the coming years ahead.
Services offered
PayMongo is a Philippines-based payment processing startup that enables businesses to accept payments from customers using mobile and internet banking, debit or credit cards, and PayMaya wallets. The platform also provides other value-added services such as dynamic currency conversion, transaction tracking, fraud protection and digital receipts.
The Philippine startup recently raised $12 million in Series A funding from its strategic investor Stripe. PayMongo intends to use the new funds to expand its product functionalities further into Southeast Asia and beyond. This includes expanding into regional countries like Indonesia, Singapore, Thailand and Vietnam. It also intends to develop deeper commerce capabilities such as integrated financing options for eCommerce businesses.
In addition to its existing payment processing services, PayMongo will be using part of the fund to develop new services such as subscription payments for customers with setup fees or recurrent charges and a split-payments provider that enables merchants to charge customers’ wallets up front. The company also looks forward to introducing new dashboards to help merchants analyse sales trends better and make faster decisions that can improve their business operations.
Series A Funding
Series A funding is the first round of venture capital financing that a company typically receives. In this round, investors will provide a company with a large sum in exchange for an equity stake.
Philippines-based payment processing startup PayMongo is the latest company to receive Series A funding, recently closing a $12 million deal led by Stripe. Let’s look at what this funding round means for the company.
Investment partners
Stripe, a global payments platform headquartered in San Francisco, was the main investor. Accompanying Stripe as investors were a mix of Venture Capital Firms and Angel Investors. The complete list includes Y Combinator Continuity, Global Founders Capital, Go-Ventures, 500 Startups, Wavemaker Pacific and Momentum6.
This investment adds to PayMongo’s existing $2.7 million seed funding round in June 2019 and was led by InVent and Haste Ventures. Executive Director Hugh Mason of JFDI Asia explained that the investments are “evidence of their commitment to supporting the fintech sector in Southeast Asia” and their curiosity for what the Philippine startup ecosystem offers with innovative payment solutions like PayMongo. The statement also emphasised “the potential for innovation across fintech via payments from Southeast Asia showing up globally” as part of this round.
Breakdown of the funding
Stripe, a global payment processor, led the Series A funding. Other investors in the round include venture capital firms such as Y Combinator, Founders Fund, Amplify.la, and Wavemaker Partners, alongside angel investors such as Jocelyn Tan.
PayMongo announced the completion of the transaction on their website. According to the startup’s statement, the new funds will be used to create more reliable payment solutions for merchants in Southeast Asia while also deepening its reach in the Philippines. The money will also further PayMongo’s global goal of becoming a global top-notch financial technology firm.
Series A funding is typically for early-stage startups who require additional capital for growth and expansion plans beyond what can be provided by seed funding and accelerator programs. The investment typically consists of cash or virtual currency. It is used to nurture promising businesses with potential for high returns in future rounds of investments or an eventual exit through acquisition or a public offering.
Impact of Series A Funding
The Philippines-based payment processing startup, PayMongo, has just raised $12 million in Series A funding led by Stripe, a major validation of their vision.
This funding will allow PayMongo to expand their domestic and global reach as they look to become the go-to payment processing solution for the Philippines and the region.
This article will explore the impact of this Series A funding.
Expansion of services
The Series A funding for the Philippines-based payment processing startup PayMongo has opened up new opportunities for the company, allowing it to expand its services beyond domestic markets. With this influx of capital, PayMongo can now build out its infrastructure to become a global provider of fintech solutions. By being supported by tech giant Stripe, who led the $12 million Series A round, PayMongo has access to Stripe’s powerful network connections and resources which will enable them to better serve international markets.
Additionally, with more funds, the startup can expand into newer segments and use cases such as online loans and consumer finance. This funding round is also expected to precede partnerships with various banks, telcos and businesses that rely heavily on digital payments for their customers and operations. With this funding injection, PayMongo aims to solidify its position as an established player in the Philippine fintech space.
Expansion of customer base
The Series A funding round for PayMongo will go a long way towards expanding their customer base and reach. This is because start-ups at this stage often require additional capital to hire more personnel, make technological advancements, and increase marketing efforts.
With the $12 million that PayMongo has raised through its Series A funding, it will be able to acquire more customers in its home market of the Philippines. It can also use some of the new funds to venture into new markets and access fresh customers who were previously inaccessible due to lack of financial resources. This can translate into higher sales by reaching out to a larger mass audience that was not within the company’s focal range. All this can ultimately lead to increased profitability of the company over time.
Moreover, having such a highly-reputed firm as Stripe on board with the Series A round will significantly benefit PayMongo’s business dealings and boost its image as it looks for new customers in other parts of Southeast Asia in addition to its home country of the Philippines. Having such a large financial player as one of its primary investors also sends out a strong signal that PayMongo is serious about delivering payment processing solutions and helping businesses gain access to secure transaction services they need.
PayMongo’s recent $12 million raise in Series A funding is a significant milestone for the Philippines-based payment processing startup.
The proceeds of the funding round will help the company accelerate innovation and expansion. The recent funding round was led by Stripe, a technology company that helps online businesses accept payments and manage their businesses globally.
This funding round is an affirmation of the success of PayMongo and a testament to the trust placed in them by their investors.
Summary of PayMongo and Series A funding
PayMongo is a Philippines-based payment processing startup that has recently raised $12 million in Series A funding. The investment was led by Stripe, a U.S.-based payments and software company, and supported by Y Combinator, Reddit’s first investor Sam Altman, and Founders Fund, Signia Venture Partners, among others.
This Series A funding will help PayMongo expand beyond its current base of over 6 million customers nationwide, allowing it to offer more user-friendly features such as card acceptance and fraud prevention to small businesses. It also plans to launch merchant lending tools enabling merchants working with the platform to access low-interest loans backed by their payment data.
The funds will be used to grow the team in the Philippines from 20 people to 80 people in 2021 and build a strong value chain for customers that include sales reps in key markets, customer success teams for both merchants and buyers and integrated visibility for expansion into other countries in Southeast Asia. The new infusion of capital is helping PayMongo further its mission of making online payments simpler, faster, secure, and affordable for everyone involved.
Implications of Series A funding
The $12 million Series A funding led by Stripe is a significant milestone for PayMongo, marking the payment processing startup’s headway into the venture capital investment space. This successful fundraise further brings attention to the Philippines’ burgeoning tech industry and affirms investor confidence in emerging markets.
The infusion of capital will give PayMongo the resources it needs to pursue its mission of bringing secure and convenient payment solutions to businesses in the Philippines. It may also signal a heightened competition between other local payment platforms as they look to capitalise on new opportunities presented by e-commerce and digital-first services. By partnering with Stripe, PayMongo also gains access to its global network, allowing them to leverage their technology and establish international pathways for merchants who wish to participate in cross-border commerce.
Moreover, this Series A funding could help improve financial literacy in the country through more innovative education initiatives via digital platforms. This could provide invaluable opportunities for customers seeking alternative asset management options beyond traditional banking institutions and widen their worldwide access to affordable online payments.
This investment is likely one of many future investments in Southeast Asian markets that will fuel growth within other digital enterprises aiming for regional success. By leveraging technology as a powerful tool for financial inclusion, more opportunities will be created from entrepreneurs with feasible business models that can better cater to a growing number of netizens and increase digital payments adoption rate within emerging markets such as the Philippines’.
