JAKARTA (TheInsiderStories) – Xendit, the fastest growing digital payments infrastructure for Indonesia, Philippines, and other Southeast Asia’ countries, has raised Series B funding worth of US$64.6 million led by Accel, the company announced on Tuesday (03/02). In years, the company has raised $88 million in funding.
Moses Lo, CEO and co-founder of the company, commented, “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.”
Amid Southeast Asia’ rapid digital transformation, the provider is quickly bolstering businesses of all sizes, processing more than 65 million transactions with $6.5 billion in payment value annually. With more than 170 million Indonesians online and a rapidly growing middle class, Indonesia’ digital economy is on track to quadruple by 2025
The company said, Accel led the round with added support from YCombinator. Xendit is the first Indonesian company to go through YCombinator’ accelerator program. Its efforts dovetail perfectly with the region’ continued steps towards digitization and financial freedom.
“Xendit has quietly built a modern digital payments infrastructure that’s transformed how Southeast Asian businesses transact. We’re excited to partner with Moses, Tessa and the founding team to help take Xendit to the next level,” said Ryan Sweeney, partner at Accel.
Southeast Asia’ digital economy soaring to $100 billion in this year, expanded 5 percent from 2019, said the Google – Temasek – Bain in the latest report. Indonesia and Vietnam continued to grow at double-digit rates, but Singapore’ internet economy contracted 24 percent to $9 billion as the pandemic choked the travel sector.
The report covered Indonesia, Malaysia, Vietnam, Singapore and the Philippines showed, over the past four years, the number of internet users in the countries has increased by 100 million, most of them are youths, aged 15 to 19. In 2020, the region added 40 million new internet users, taking the total to 400 million.
The report added, the number implies 70 percent of the region’ population is now online. The e-commerce business its expecting grow 63 percent to $62 billion in 2020. It said, the region’ online industry is poised to triple to $309 billion in gross merchandise value by 2025.
With an 11 percent increase in online users, Southeast Asia become one of the world’ fastest growing internet markets, compared to around 4.7 billion internet users worldwide. In early report, Google – Temasek estimates, Indonesia’ digital economy could increases more than four times by 2025 to $100 billion. Beside e-commerce, online transportation sector is also considered attractive.
Recently, the Association of Southeast Asian Nations (ASEAN) members expressed commitment to synchronize regulations on e-commerce on each jurisdictions as part of an effort to strengthen the digital economy development in the bloc that is home to around 700 million population.
The five member countries have linked to the ASEAN Single Window, with objective to expedite cargo clearance and promote the organization economic integration by enabling the electronic exchange of border documents among the members. in 2019, The ASEAN Economic Community ratify the completion of the Digital Integration Framework Action Plan 2019 – 2025 to advance and overcome digital integration barriers in ASEAN.
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