The startup was last valued at about $1 billion in a funding round in October 2020, the person said. The Mumbai-based company plans to use the fresh capital for expansion in the domestic market, said the person who asked not to be identified as the information is private. The company also is planning to expand its markets to Thailand, Malaysia and Vietnam.(Bloomberg) - Tiger Global has agreed to invest an additional $125 million in Infra.Market in a deal that values the Indian technology startup at about $2.5 billion, according to a person familiar with the matter. Next it plans to expand support of not only large and technology-focused companies, but small businesses as well. Customers include Grab, Wise, Traveloka, Samsung Indonesia and ShopBack, in addition to Indonesia’s national post office and national airline, Tiket. Xendit’s customers include fintech startups in the lending, remittance and crypto sectors as well as enterprise SaaS, e-commerce and logistics. Southeast Asia has some of the fastest-growing economies along with a younger tech savvy population. We built direct debit with Grab ride-sharing as a first customer,” Lo said of the company’s intention to not just replicate what exists in a market, but to bring something new. In 2020, Xendit launched in the Philippines, its second market.“We built something that didn’t exist. The ability to reconcile payments proved extremely popular with merchants.
So we brought to market this idea of a virtual account where it’s a unique identifier,” said Lo. “If a thousand people send you $10 for your stickers that you’re selling, it’s hard to reconcile. Most payments are done via bank transfers which is very cumbersome. In Indonesia and the Philippines, credit card penetration is extremely low, around 3 percent. Some companies underestimate “how important it is to understand payment behaviors in the market to be able to succeed,” said Wijaya. “We released some APIs and we’ve had customers on this kind of payments infrastructure ever since” said Lo on the company’s accidental journey to becoming a payment infrastructure company. The company built its own payment infrastructure, partnering with banks. “We take that for granted in the U.S., but that didn’t exist in Indonesia.” “There was no way for dispersing money, sending out money at scale 24/7, sending unlimited amounts to any bank account,” said Lo. Whilst at YC it pivoted to peer-to-peer payments, a consumer Venmo -type service. The company, which started out in Bitcoin remittance payments, was one of the first companies from Southeast Asia to join Y Combinator in 2015. In 2022, Xendit is on track to process $15 billion in payment value, showing more than 100 percent growth from 2021 at $6.5 billion, according to the company. “We’ve often been called Stripe for Southeast Asia.”Ī generation of entrepreneurs “can launch businesses at scale with hundreds of thousands of users in a couple of days,” a real situation a customer faced, said Lo. “We help merchants all over the region accept payments, send payments and then also hold funds” said Lo. We spoke with co-founders Moses Lo, Xendit’s CEO, and Tessa Wijaya its COO.
Xendit co-founders, COO Tessa Wijaya and CEO Moses Lo Existing investors who participated include prior leads Accel, Tiger Global and Kleiner Perkins (who led the Series A), as well as EV Growth, Amasia, Intudo Ventures and Twitch founder and ex- Y Combinator partner Justin Kan ’s Goat Capital.
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