Philippines-based payments processing startup PayMongo has secured $12 million in a Series A funding round backed by Silicon Valley investors, led by online payment processing firm Stripe, the company said in a statement.
PayMongo’s filing with the US Securities and Exchange Commission showed that it raised $14.7 million from 23 investors but its co-founder and CEO, Francis Plaza, told DealStreetAsia the filing included the amount converted from the convertibles during the $2.7-million seed round.
The company’s existing investors Y Combinator and Global Founders Capital, and a new investor, Bedrock Capital, also participated in the funding round, which is one of the biggest investments to date among Philippine fintech startups. Global Founders Capital is a Berlin-based investor that has backed companies such as Facebook and Slack.
The fresh investment brings PayMongo’s total funding to almost $15 million, just a little over a year since the company launched in June 2019 by four co-founders – Plaza, an MIT engineer; software engineer Jamie Hing II; business entrepreneur Luis Sia; and former Philippine Cabinet official Edwin Lacierda.
“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,” Plaza said.
The fresh funding, Plaza added, will be used to accelerate the rollout of PayMongo’s new features and products as well as build up its product, design, and engineering teams to further address the payments processing needs of startup businesses in the country.
Data released by PayMongo showed that Philippine digital transactions surged by 42 per cent in value between January and April this year, driven by the rise in online transactions due to the strict community quarantine measures.
The startup’s transaction volume soared 15 times since the year started, Plaza said. PayMongo’s payment platform allows businesses to quickly transition to digital, continue operating online, as well as accept digital payments such as credit and debit cards and e-wallets.
“Given the disruption caused by COVID-19, a service like theirs is simply vital for the country’s businesses and economic future,” ”Noah Pepper, Stripe’s APAC Business Lead, said.
PayMongo is the first Filipino-owned fintech start-up incubated by Silicon Valley-based Y Combinator, the premier seed accelerator in the world. Y Combinator participated in PayMongo’s seed round, along with Stripe; venture capital firm Founders Fund; entrepreneur and venture capitalist Peter Thiel; investment group Global Founders Capital; as well as several other angel investors.
