Filipino Startup NextPay Reaches P3.2 Billion Digital Transaction Milestone, One Step Closer to Series A

Filipino fintech startup NextPay is one step closer to Series A after its digital transactions reached P3.2 billion in 2022. The billion-peso volume is a milestone for the Y Combinator startup, which was founded in 2020.

“We take great pride in achieving this significant milestone, which not only showcases NextPay's remarkable success but also underscores the success of SMEs in the Philippines,” said Don Pansacola, co-founder and chief executive officer of NextPay.

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NextPay’s P3.2 billion milestone is expected to “pave the way for a promising Series A funding round in the second half of 2023,” said Pansacola. After securing $125,000 (approximately P6 million) from Silicon Valley-based accelerator Y Combinator in early 2021, NextPay then raised $1.6 million (approximately P80 million) in seed funding later that year.

The startup is backed by the Sy family’s Gentree Fund, Ayala Group’s Kickstart Ventures, Silicon Valley-based Y Combinator, Singapore-based VC Golden Gate Ventures, and other investors.

“The past years have given us the opportunity to grow and provide basic financial services to more Filipinos, this year we aim to push the boundaries of the services we provide for small business owners,” said Aldrich Tan, co-founder and chief experience officer of NextPay.

In 2022, NextPay experienced a record-high increase of over 200 percent in user transactions versus the previous year, and currently serves over 3,800 Filipino MSMEs, 4,200 users from fast-growing enterprises, 10,000 suppliers, and 23,000 employees. NextPay’s services grant companies easy access to digital invoicing, cash management, batch payments, and more. With a focus on MSMEs, NextPay is also rolling out virtual debit cards for employee disbursements and corporate online subscriptions, lending and advances for qualified users, and premium subscription tiers for special features.

NextPay plans to continue “empowering businesses and entrepreneurs so they can focus on doing what's next,” according to Artie Lopez, co-founder and COO of NextPay.