PH's biz tycoons pitch in for fintech startup's $1.6M funding

enablePagination: false
maxItemsPerPage: 10
totalITemsFound:
maxPaginationLinks: 10
maxPossiblePages:
startIndex:
endIndex:

NextPay founders Don Pansacola (right) and Aldrich Tan.

Metro Manila (CNN Philippines, July 29) — Filipino billionaires have backed homegrown financial technology startup NextPay in its $1.6-million (₱80.7 million) investment round.

The Sy Family, which runs SM Investments Corp., led the oversubscribed seed financing round through its private investment vehicle Gentree Fund, together with Singapore-based venture capitalist Golden Gate Ventures.

Local investors, including Ayala Group's Kickstart Ventures and Lisa Gokongwei of JG Summit, also participated in the financing round.

Other investors were Tribe Capital, Broadhaven Ventures, 1982 Ventures, Saison Capital, and Razorpay, Rohit Mulani of GoTrade, and Abhinay Peddisetty, and Chinmay Chauhan of BukuWarung.

Goodwater Capital — which has invested in Facebook, Spotify, and Twitter — also supported the funding exercise.

NextPay provides digital invoicing, cash management, and batch payments to any bank or e-wallet in the Philippines.

The company — which has already processed over $9.1 million in digital transactions despite launching in the market just last year — said proceeds will finance its target of developing new digital financial solutions for micro, small, and medium enterprises.

NextPay's portfolio is expected to be boosted with digital banking solutions such as corporate cards, loans, and integration with other platforms focused on MSMEs, NextPay chief experience officer and co-founder Aldrich Tan said.

Its chief executive officer and co-founder Don Pansacola is optimistic about the group's growth prospects, as efforts of Philippine companies to ramp up digital transformation got the coronavirus push.

"We believe that business banking will continue to digitally evolve, as the Philippines accelerates its digital transformation initiatives," Pansacola was quoted as saying in a statement issued Wednesday.

"This investment supports our goal of putting the power of big banks in the hands of small businesses," he added.