MANILA — Philippine fintech startup NextPay has raised $1.6 million or over P80 million in seed funding from international and local investors, the company announced on Wednesday.
Singapore-based venture capitalist Golden Gate Ventures and the Sy family’s Gentree Fund led the oversubscribed seed financing round, NextPay said.
The Gentree Fund is a private investment vehicle of the Sy family, which owns the SM Group.
“Goodwater Capital, which has invested in Facebook, Spotify, and Twitter, also supported the funding exercise,” NextPay said.
The company’s seed funding was also backed by Kickstart Ventures of the Ayala Group, Foxmont Capital, and First Asia Ventures, as well as angel investor Lisa Gokongwei of JG Summit.
NextPay said it will use the funds to expand its suite of services, its customer base, and introduce new digital banking solutions to micro, small, and medium enterprises (MSMEs).
“We believe that business banking will continue to digitally evolve, as the Philippines accelerates its digital transformation initiatives. This investment supports our goal of putting the power of big banks in the hands of small businesses,” NextPay CEO and cofounder Don Pansacola said.
The fundraising marks a milestone for NextPay after graduating from the prestigious Y-Combinator program in April, when it received $125,000 in pre-seed investment, the company said.