Philippine Fintech PayMongo Raises P1.59 Billion in Series B Funding
Philippine fintech startup PayMongo has closed a $31 million (approximately P1.59 billion) deal from its Series B funding round led by Justin Mateen’s JAM Fund, Philippine VC firm ICCP-SBI Venture Partners, and Lisa Gokongwei’s Kaya Founders, together with existing investors Global Founders Capital and SOMA Capital.
European fintech unicorns and startups also participated in the round, namely Qonto, Viva Wallet, Billie, and Scalable.
With Series B in the bag, PayMongo has now raised a total of almost $46 million (P2.36 billion). The fintech raised $2.7 million (P138 million) in its seed round in 2019, followed by $12 million (P616 million) in Series A in 2020.
Since closing its Series A funding, PayMongo has experienced a 3x growth in merchant base and 4x growth in monthly transaction volumes. With 99 percent of businesses in the Philippines categorized as SMEs, PayMongo is banking its sustainable growth on serving the “underserved” SMEs class by becoming a “one-stop-shop” for Philippine entrepreneurs.
PayMongo will use its Series B funding to scale its operations with new products such as disbursements, capital lending, “buy now, pay later,” subscriptions, recurring payments, and other services.
PayMongo co-founders: Jaime Hing III, Chief Technology Officer; Francis Plaza, Chief Executive Officer; Luis Sia, Chief Commercial Officer
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“This investment is a testament to our growth and the continued growth of our merchants. With this Series B, we will invest further in our merchants’ successes by giving them more means to move money seamlessly online,” PayMongo CEO and co-founder Francis Plaza said.
Founded in 2019, PayMongo first made the news when it was accepted into Silicon Valley’s Y Combinator, one of the world’s most successful accelerator programs. It then went on to become Y Combinator’s first fintech investment in the Philippines. PayMongo leverages its easy-to-integrate API and e-commerce plugins to provide online businesses with accessible and efficient payment options.
“As one of PayMongo’s first investors, I’ve seen their path from simplifying payments for a handful of businesses to now being a company that thousands of merchants depend on for their day-to-day operations,” said returning investor and JAM Fund and Tinder founder Justin Mateen.
“We are very proud to be supporting PayMongo as our first FinTech investment in ICCP’s Fund VI,” said Miguel Encarnacion, Managing Director at ICCP-SBI Venture Partners. “As the oldest operating VC firm in the Philippines and having invested in Silicon Valley since the 90s, we see the importance of FinTech as a foundational layer for the digital economy. As PayMongo revolutionizes business-to-business payments in our country, they will expedite the growth of many more industries."
