Xendit – Indonesia’s new unicorn startup in the financial technology (fintech) industry plans to expand into markets such as Vietnam, Malaysia and Thailand in the near future.
Regarding the reporter’s question about whether there will be a new round of capital raising by Xendit, Ms. Tessa – Founder and CEO of Xendit said that the startup will not raise capital at the moment, when the business is on a stable track of operation.
Previously, in September 2021, Xendit successfully raised 150 million USD in a Series C funding round led by Tiger Global venture fund with the participation of existing investors, namely Accel, Amasia and Goat Capital is owned by Justin Kan, making the startup a rare new fintech unicorn in Indonesia.
Currently, Xendit processes more than 65 million transactions worth up to $6.5 billion annually. Founder and her team of 600 people handle online payments, market operations and financial management for businesses in Malaysia, the Philippines, Singapore and several other countries. Current Xendit customers include Grab, Wise and Traveloka.
After successfully raising capital in Series C, Xendit will innovate its products, with the goal of expanding to several countries in Southeast Asia due to the huge growth potential in this region.
The Director shared that in the coming time, Xendit will focus on expanding in the Southeast Asian market. “We are doing very well in our home market of Indonesia. Recently, Xendit has expanded in the Philippines and achieved very positive results.”
In the context of the pandemic, Xendit has recorded a growth rate of up to 200%/year. “We are very excited about our plans to expand to other markets in Southeast Asia. A lot of our customers are asking to expand into markets like Vietnam, Malaysia and Thailand. We consider this as a growth lever in the coming time”.
Regarding the difficulties in entering some markets where a low percentage of the population has a bank account, Ms. Tessa affirmed, the pandemic has partly created an opportunity for SMEs to transform. number. “Digital transformation is no longer a story of business choice, but a must-do”.
Currently, the Xendit platform is having about 7,000 registrations per month just for small and medium businesses. That is a sign that these businesses see the potential for growth. According to the representative of Xendit, the current trend is the digital economy. “We use phones all the time, from home, to when we go out, we have to use QR codes, then shop, and many other things. Digital transformation has gradually become ingrained in users’ living habits.”
Capital poured into fintech in Vietnam continues to prioritize e-wallets
In fact, in 2021, the capital “poured” into fintech in ASEAN has increased sharply again, with the total capital in the first 9 months of 2021 more than tripling compared to the whole year of 2020 at a historic high 3.5 billion USD.
According to the fintech in ASEAN report 2021 by UOB, PwC Singapore and Singapore Fintech Association (SFA) just released on 11/11, fintech funding recovery was fueled by 167 deals including 13 major funding rounds, accounting for 2 billion USD of total funding. In which, a large round is defined as a funding round of $100 million or more.
With 388 million USD in successful funding, Vietnam ranked third in fintech funding, this position has dropped compared to two years ago, but has had a strong recovery compared to last year.
The increase in capital was thanks to two large funding rounds, namely 250 million USD in VNPay, a provider of mobile payment solutions for banks and businesses, and 100 million USD in Series D funding round of MoMo.
With the growing adoption of digital payments in ASEAN, investors have placed their trust and poured the highest amount of money into late-stage fintech companies from the payments sector.
In which, Singapore-based fintech companies continue to attract the strongest capital from ASEAN, accounting for nearly half (49%) of total deals through six large funding rounds equivalent to $972 million in total funding of $1.6 billion.
Indonesia remains in second place this year, raking in $904 million in funding (26%). Fintech companies in Singapore and Indonesia have received funding in almost every category, a sign that this is a vibrant and growing industry with an active investment landscape.
Shadab Taiyabi, president of SFA, said a key driver of this resurgence is the pandemic, which has spurred digital adoption across the ASEAN region, driving the rise of digital payments and accelerating the shift to digital channels in the financial services sector.
In terms of portfolios, funds poured into investment technology and crypto companies in ASEAN posted the strongest growth in 2021, brings both categories to second and third place respectively after the payment category.
It is also the first time in six years that alternative lending has fallen out of the top three spots for investment funding as consumers’ interest in digital investments and digital currency has grown.
Compared to 2020, funding for investment technology companies has increased six times to $457 million this year. According to a survey, 6 out of 10 ASEAN consumers have used digital tools such as robot advisors and online brokerage platforms for their investment needs.
Funding for crypto companies ranks third with $356 million as they attract twice the amount received in 2020. Statistics highlight, 9 out of 10 ASEAN consumers have started or plan to use cryptocurrencies and central bank digital currencies.
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Source: Vietnam Insider