PH Financial Sector Regulation Boosts Startup Expansion
MANILA – The forward-thinking policies of Filipino regulators have prompted a Southeast Asian payments infrastructure startup to decide to further expand its domestic operations, especially after securing a capital raise from several investors.
Xendit recently received $ 150 million in Series C funding, a capital injection directly intended for the company’s core business, from investors such as Tiger Global Management, Accel, Amasia and Goat Capital.
This elevated Xendit to a unicorn, a term given to start-ups valued at over $ 1 billion, which Xendit CEO and Managing Director Yang Yang Zhang says will be of great help in developing. and further improve their products and services.
“For me, the Philippines has just presented all the right systems, the right formula for a place where innovation is respected, valued and ultimately embraced,” she said Thursday in a virtual briefing.
Zhang said that the Bangko Sentral ng Pilipinas (BSP), for its part, makes the company’s entry into the national economy more convincing due to its progressive and forward-thinking regulations.
“Anyone who wants to pitch a new idea really has an audience with BSP,” she said.
The potential of the local market is also important, she added.
“Every ingredient exists here today to contribute to a hyperbolic stage very similar to what we’ve seen in Indonesia over the past five years, with a young and mobile population, strong smartphone penetration, an early adapter mentality , tons of support for digitization, tons of financial institutions’ commitment to digitization, ”said Zhang.
Added to these factors is the existence of a large number of customers, she said.
“Knowing that the context is there, the opportunity to seize the market is there, and the guaranteed customers are there convinced us that so many other startups and traditional company (s) can benefit from our products. Regulators, customers and businesses (are) ready and open for this next step of the digital solution, ”she added.
Since the company’s launch in December 2020, it has increased its digital infrastructure in the country to help boost government-offered digital financial payment transactions.
“Xendit’s new fundraising and unicorn status will strengthen our mission to provide reliable and secure financial infrastructure to hundreds of thousands of growing businesses in the Philippines. Our dream is to accelerate the growth of the Philippine digital economy by continuing to create leading solutions for businesses and SMEs (small and medium enterprises), while introducing the global venture capital (VC) community to the growing local startup ecosystem. Zhang added. (ANP)