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Filipino startup Nextpay has raised $1.6 million (around P80.6 million) in a seed round funding, the company announced Wednesday. The funding was led by Singapore-based venture capital firm Golden Gate Ventures and Gentree Fund, the private investment vehicle of the Sy family of the SM Group.
The funding comes about four months after Nextpay received a pre-seed investment of $125,000 (about P6 million) from Silicon Valley startup accelerator Y Combinator. The company has now raised a total of $1.725 million (P87 million).
Among other foreign investors that participated in the seed funding round are Tribe Capital, Broadhaven Ventures, 1982 Ventures, Saison Capital, and Razorpay, Rohit Mulani of GoTrade, and Abhinay Peddisetty and Chinmay Chauhan of BukuWarung, as well as Goodwater Capital, a company that has invested in Facebook, Spotify, and Twitter.
Locally, NextPay’s seed funding was backed by Kickstart Ventures of the Ayala Group, Foxmont Capital, and First Asia Ventures, as well as angel investor Lisa Gokongwei of JG Summit, among others.
NextPay is a startup that grants growing companies access to easy and affordable financial services such as digital invoicing, cash management, and batch payments to any bank or e-wallet in the Philippines. Its focuses mostly on MSMEs and other underserved customers.
According to the company, proceeds of this latest seed funding round will be used “to grow NextPay’s suite of services, expand its strong customer base, and introduce new digital banking solutions to micro, small, and medium enterprises (MSMEs).”
Launched just last year, NextPay claims to have processed over $9.1 million (over P457.5 million) in digital transactions for more than 100 businesses with over 3,500 employees.
“The success of our seed funding exercise will help us accelerate our plans of introducing more meaningful digital banking solutions, including, but not limited to, corporate cards, loans, and integrations with other platforms focused on MSMEs,” NextPay Chief Experience Officer and Co-Founder Aldrich Tan said. “We will also be hiring more talent to make the NextPay platform more comprehensive, simple, and easier to use and avail of. We aim to provide the best service and experience so that our customers can focus more on growing their businesses.”
“We believe that business banking will continue to digitally evolve, as the Philippines accelerates its digital transformation initiatives,” NextPay Chief Executive Officer and Co-Founder Don Pansacola said. “This investment supports our goal of putting the power of big banks in the hands of small businesses.”
“Managing your businesses' finances efficiently and confidently is mission-critical to success, and NextPay is building industry-leading digital banking solutions for SMEs to better manage their finances: from payroll, to collections, to invoicing,” Golden Gate Ventures Partner Justin Hall said. “Golden Gate Ventures' decision to invest in NextPay was ultimately a very easy one: businesses need better banking services, and NextPay was building the best banking platform for Filipino SMEs.”
To learn more about NextPay, please visit https://nextpay.ph.
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