Manila-based fintech startup PayMongo, backed by PayPal co-founder Peter Thiel, has acquired a $31 million Series B funding round, increasing its total capital to roughly $46 million.
Also known as the “Stripe for the Philippines,” PayMongo provides businesses with integration tools to accept a variety of digital payment options, including credit cards and e-wallets.
As the firm aims to lower the barriers to entry for small and medium-sized Filipino businesses into the digital economy which accounts for 99% of firms, PayMongo tripled growth in merchant base and quadrupled growth in monthly transaction volumes since its Series A funding round in 2020.
“This investment is a testament to our growth and the continued growth of our merchants,” said PayMongo cofounder and CEO Francis Plaza, a Forbes 30 Under 30 Asia alum from 2020, in a statement. “With this Series B, we will invest further in our merchants’ successes by giving them more means to move money seamlessly online.”
The Philippines was Southeast Asia’s fastest-growing digital market in 2021, according to a report by Google, Singaporean state investment company Temasek and consulting firm Bain & Company.
According to the report, the country’s internet economy is predicted to rise from $17 billion in 2021 to $40 billion in 2025, owing to a rapid increase in the adoption of digital services.
As consumers and merchants in the Philippines embrace digital platforms as a result of the Covid-19 outbreak, the report claims that deal activity is on course to hit a new high, as investors adjust to the “new normal” in dealmaking and fund digital services.