Filipino Startup NextPay Banks P6 Million from Silicon Valley Accelerator
Filipino fintech startup NextPay announced that it has received a pre-seed investment of $125,000 (about P6 million) from Silicon Valley-based startup accelerator Y Combinator.
Y Combinator is best-known for investing in some of the best-known and most successful startups, including Stripe, Airbnb, DoorDash, Dropbox, Twitch, and Reddit.
In a news release, NextPay said the investment is to help the company “expand its services further and address the growing problem of financially underserved businesses in the Philippines.” It’s also to leverage the company’s previous experience working in “unicorn” companies to expand its line of digital banking services. This includes plans to include new digital solutions for payments, credit, and personal cash management.
“Our goal is to empower smaller businesses with a spectrum of banking services that were previously unavailable to them because of the steep requirements and high fees that are typically aimed at larger, more developed companies that can afford them,” NextPay CEO and co-founder Don Pansacola said. “This funding round from Y Combinator allows us to scale even faster to bring digital financial services closer to MSMEs.”
NextPay co-founders Aldrich Tan and Don Pansacola
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. It now joins other Filipino startups that have received funding from Y Combinator, including Kalibrr (2013), PayMongo (2019), Avion School (2021), and Dashlabs.ai (2021).
“We plan to introduce more payment acceptance methods, virtual credit cards, and other digital solutions that enable businesses to manage their cash flow and alleviate the bottlenecks of the Philippine financial landscape. We will also partner with human resource and accounting software companies to further streamline the financial operations of a growing company,” Pansacola added.
Launched just last year, NextPay has quickly grown to be one of the most promising fintech startups in the country. It has reportedly processed over $2.5 million (P120 million) in digital transactions for more than 100 businesses—and the number is still growing. The company businesses, entrepreneurs, and freelancers to centralize all their financial requirements through one easy-to-use, affordable, and inclusive platform.
“The opportunity to provide digital financial services to these market segments, which make up 99.5% of all businesses, and are the lifeblood of the Philippine economy, is huge,” NextPay chief experience officer and co-founder Aldrich Tan said. “Through our platform, MSMEs can conduct their transactions seamlessly and allow business owners to free up resources and focus on their operations. This optimization and focus are vital in supporting and strengthening the country’s efforts towards economic recovery.”
“NextPay wants to help the Philippines bounce back. We want to enable growing enterprises to maximize their capital, reach more customers, and generate more jobs and opportunities,” Pansacola added. “This then stimulates economic transactions and creates demand for stronger partnerships. It’s a domino effect, but it starts from having a digital platform like NextPay who empowers MSMEs to thrive and do more.”