Thailand and Japan-based online payment gateway, Omise.co has raised its third round of financing from Singapore-based venture capital firm Golden Gate Ventures (GGV), to drive its expansion in South East Asia and Japan.
This round of funding will be used to hire new talent and help the company extend beyond its existing borders, by first instilling secured resources including a Singapore-based business development team, as well as a support team to contribute to internal expansion and advance its growth, it said in a statement.
The startup had raised a $2.6 million Series A in May 2015, and a seed funding of $300,000 in August 2014, according to AngelList.
Its previous fundraising round was led by Indonesian venture capital (VC) firm Sinar Mas Digital Ventures, with participation from East Ventures, 500 Tuktuks – 500 Startups’ dedicated fund for Thailand – and Thailand-based mobile operator True Incube.
In an interaction with DEALSTREETASIA, co-founder and chief operating officer Ezra Don Harinsut said the amount raised would not be undisclosed.
“But this is GGV’s second largest investment by cheque size. We have also been approached by quite a lot of VCs lately,” he said over email.
GGV made its largest investment of $3.32 million in Singapore’s HipVan, three weeks ago.
Founded in June 2013 in Thailand, Omise kicked off as an e-commerce platform initially but quickly pivoted to create a convenient one-stop payment solution, simplified for both developers and merchants to work with.
Omise allows e-commerce sites in Southeast Asia to quickly accept credit card payments with a simple plug-and-play interface built for software developers, the statement read.
The startup now serves more than 2,000 merchants of both national and international repute including one of the largest e-commerce sites in the country, renowned banks in the region, a local airline, and a telco.
Their flagship customer TRUE is Thailand’s largest cable TV and Internet provider.
Over this year, the company has made remarkable progress, growing 56 percent between the first quarter (Q1) and Q2 this year, and spiking up to 269 percent quarterly growth in Q3.
The number of financial transactions occurring on the platform is estimated to accelerate by 50 percent into the hundreds-of-thousands transactions monthly.
GGV said it had been tracking Omise for over a year, as much of their portfolio, including e-commerce startups, face difficulty with credit card payment providers around the region.
Many existing incumbents don’t support the advanced functionality their portfolio needs, such as a simple user interface on mobile, nor recurring payments, it said in its statement.
GGV managing partner Vinnie Lauria said the firm was keen on helping Omise expand in the region.
“Our investment thesis is that in order to create a massive success in Southeast Asia, companies need to expand beyond their home country to reach the half billion people that are coming online and rapidly adopting mobile internet and e-commerce. Expanding out from your home country is what separates the winners from the losers in this region. We’re excited to partner with Omise to aid in their expansion.” Lauria commented.
Omise now functions in Thailand and is currently running a closed beta test in Japan and Indonesia. In an earlier interview with TechCrunch, Harinsut and founder Jun Hasegawa said they had “big plans” for Indonesia.
Harinsut said Indonesia is naturally part of Omise’s growth strategy, considering the growth of e-commerce in 2015 at approximately $50 billion, which is five times bigger than Thailand, as well as the high mobile penetration rate.
This fast-expanding startup expects to achieve its next milestone by pushing through to Singapore, Malaysia, Philippines and Hong Kong by the middle of next year.
“We are optimistic about the e-commerce market in Thailand and the Asia Pacific region. In 2013, Thailand’s e-commerce market was worth approximately $900 million, and according to research, it is expected to reach $15 billion within the next four years.” chief executive officer and founder Hasegawa noted.
“Our primary goal is to deliver a service that is secure, well documented, all with simple implementation whether on mobile or web platform. Our endeavour is to create a full-featured online payment gateway easily accessible and available to everyone.”
The company had expressed before that it may also expand into offline payments, looking into point-of-sale and in-store hardware.
Harinsut replied to DEALSTREETASIA follow-up on the new business stream, noting that the plans are already on Omise’s roadmap.
“But prior to that, we look forward to launching our blockchain product,” he said.