Technology

Indonesian fintech Xendit raises US$64.6M Series B

Indonesian fintech Xendit, which recently launched its Philippine operations, has raised US$64.6 million in a Series B round led by Accel, with added support from YCombinator. Image credit: Screenshot of Xendit site
Image credit: Screenshot of Xendit site

Indonesian fintech Xendit, which recently launched its Philippine operations, has raised US$64.6 million in a Series B round led by Accel, with added support from Y Combinator. Xendit is the first Indonesian company to go through Y Combinator’s accelerator program and was named one of Y Combinator’s top 100 companies of 2021.

“Southeast Asia is a massively complex region, with Indonesia having 17,000 different islands alone — not to mention the region’s regulatory and technological challenges. Trying to build the businesses of tomorrow on yesterday’s infrastructure is holding Southeast Asia’s businesses back. This latest investment will enable Xendit to scale our digital payments infrastructure quickly and provide millions of small and medium-sized businesses across Southeast Asia with an on-ramp to the digital economy,” said Xendit CEO and Co-Founder Moses Lo in a press statement.

Southeast Asian expansion

Altogether, the company has raised US$88 million in funding. Amid Southeast Asia’s rapid digital transformation, Xendit is quickly bolstering businesses of all sizes, processing more than 65 million transactions with US$6.5 billion in payment value annually.

The Indonesian fintech said the latest round of funding will drive, among other key initiatives, Xendit’s expansion across Southeast Asia and accelerate the growth of its recently launched operations in the Philippines.

“With more than 150 million Indonesians online and a rapidly growing middle class, Indonesia’s digital economy is on track to quadruple by 2025. Southeast Asia needs access to a reliable payments infrastructure of its own. Xendit’s platform will supercharge the region’s incredible digital economy, ensuring the next generation of businesses can soar,” said Xendit COO and Co-Founder Tessa Wijaya.

Xendit’s diverse worldwide team brings localized solutions to a global framework. Both Lo and Wijaya were born and raised in Asia, with a deep understanding of its culture and local nuances.

After pursuing higher education in the US, Wijaya honed her expertise in Southeast Asia’s market dynamics and regulations. At the same time, Lo gained insight into global tech accessibility and Silicon Valley’s startup ecosystem.

From small bazaar and Shopify/Wix sellers to large enterprises — like Grab, Cashalo, Ninja Van, kumu, and ShopBack — businesses have experienced a long battle to digitize without proper tools for Southeast Asia’s economic nuances. The Indonesian fintech aims to provide them all with payment solutions to set up and go to market quickly, including processing payments, running marketplaces, disbursing payroll and loans, and detecting fraud.

Bridging the digital gap

Xendit’s efforts dovetail perfectly with the region’s continued steps towards digitalization and financial freedom. The Association of Southeast Asian Nations joined forces to adopt its Community Vision 2025 to expand financial literacy, enhance connectivity, strengthen regional infrastructure, expand digital payments scope, raise awareness against digital fraud, and prioritize bridging the digital gap.

In the Philippines, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said last year that the Philippine government’s goal is for 50% of retail payments to be digital by 2023.

“With the support of forward-thinking regulators like the BSP, the Philippines has seen widespread adoption of digital payments over the last year,” said Xendit Philippines Managing Director Yang Yang Zhang.

“We feel strongly that Xendit is best poised to ensure that all Filipino businesses — from enterprises to SMEs — have easy access to world-class payments infrastructure to help them rapidly adapt to this shift in consumer behavior. We are so excited to play a role in the Filipino economy’s recovery from the COVID pandemic and set the stage for the next inflection point in its growth,” she said.

“Xendit has quietly built a modern digital payments infrastructure that’s transformed how Southeast Asian businesses transact. Their team’s combination of deep local expertise and global ambitions means they’re uniquely positioned to do what no other company could do in the region. We’re excited to partner with Moses, Tessa, and the founding team to help take Xendit to the next level,” said Accel Partner Ryan Sweeney.