Xendit closes 2021 on a high, achieving record milestones in its first year of operations in the Philippines. A key accomplishment is becoming a Southeast Asian unicorn after securing $150 million in Series C funding. The payments infrastructure startup is now one of 35 unicorns in the region, with a current valuation of $1 billion.
“We are on track with our goal of creating a seamless digital infrastructure for the Philippines. Many have embraced the benefits of cashless payments and we expect continued demand even after the pandemic. When this is combined with regulators being open to innovation and the Philippine economy on the cusp of hypergrowth, digital transformation will happen sooner rather than later,” says Yang Yang Zhang, managing director, Xendit Philippines.
A year of growth
Xendit has grown 25% month on month, with a 200% increase in total payments volume year on year. In less than 12 months, it has processed more than two million debit transactions worth $10 billion from more than 350,000 linked bank accounts.
The startup has also achieved a series of firsts in the Philippines. A month after launching, Xendit became the first Philippine payment gateway to offer all 3 of the top e-wallets: GCash, GrabPay, and PayMaya.
The startup is also the first to launch a Direct Debit solution in partnership with the country’s top banks, including Bank of the Philippine Islands, UnionBank, Banco de Oro, and Rizal Commercial Banking Corporation. Lastly, it is the first to provide a Buy Now, Pay Later solution with BillEase.
To meet the growing demand for fast, simple, and secure digital transactions, the Philippine team has grown tenfold, with an aim to hire more specialized roles such as product specialists and engineers.
Apart from offering Filipinos more convenience with digital transactions, Xendit aims to empower businesses of all sizes to send and accept payments. In 2021, the startup launched the Level Up Grant, a campaign built specifically for small and medium enterprises (SMEs). This eliminates cost barriers by waiving two months of transaction fees across all channels.
Additionally, Xendit has forged partnerships with other platforms. In August, it placed a strategic investment in Dragonpay, a pioneering Filipino financial technology company that enables businesses to accept digital payments. The partnership is anchored on a shared mission of empowering Philippine SMEs through secure and cost-effective digital payment methods. Just a few months later, Xendit also partnered with the global software as a service (SaaS) e-commerce platform ECWID by Lightspeed.
Xendit’s success allows the company to expand its reach and make its payments infrastructure available to more entrepreneurs in the country and in other regional markets. This will also enable Xendit to innovate its product suite and improve its services.
By 2022, the startup will introduce new business solutions to help contribute to e-commerce growth.
The first is xenCapital, a lending solution with flexible financing options. This will serve as an alternative to traditional financial institutions, grounded on simplicity, speed, and service. Xendit promises minimal requirements so businesses can quickly scale.
Another is Illuma, a value-added service that lets businesses leverage data and strengthen business processes. This will grant SMEs the ability to validate contacts, accounts, and identity documents, and screen for fraud. Lastly, xenRemit aims to accelerate innovation within the remittance field.
“We are happy with the warm welcome that we received from our customers in our first year of operations in the Philippines, but what truly excites us is our role in shaping the country’s digital infrastructure. We aim to continue innovating and expanding our services so we can help more businesses and more Filipinos,” shares Christian Reyes, chief operating officer, Xendit Philippines.