PH fintech startup PayMongo raises $12m in Stripe-led Series A

PayMongo co-founder Francis Plaza. DealStreetAsia photo.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.