Xendit, one of the fastest-growing payments infrastructure platforms for Southeast Asia, announced today it closed US$300 million in Series D funding, taking the total amount raised to US$538 million to power the world’s fastest-growing digital economy. Coatue Insight PartnersCo-led the round with additional investments from Accel, Tiger Global, Kleiner Perkins, EV Growth Amasia, Intudo, and Justin Kan’s Goat Capital.
Known as the “Stripe of Southeast Asia,” Xendit is setting the gold standard for the region’s digital economy, ensuring more startups and SMEs can confidently process payments and scale their businesses. Xendit has tripled its annualized transactions, from 65 million to 200 millions, and increased the total payments value from $6.5 million to $15 billion over the past year. The company’s rapid growth continues with a 10% monthly increase in sales since its inception back in 2016.
“We intend to keep reinvesting in new markets, enhancing our Xendit platform, and expanding our business lines so we can seize the biggest and best opportunities,” Moses Lo, Founder & CEO at Xendit, explained. “Southeast Asia’s digital economy will be worth more than US$360 billion by 2025 and we think we’ve positioned ourselves well to both drive and benefit from that growth.”
Xendit invests in strategic projects that support startups and SMEs in Southeast Asian nations. The company recently invested in Bank Sahabat Sampoerna, a private bank in Indonesia that focuses on micro and SME businesses, as well as banking-as-a-service for technology-enabled businesses. To complement its expansion into the Philippines, Xendit made a strategic investment into the leading local payment gateway, Dragonpay, doubling down on its commitment to modernizing hyperlocalized payments infrastructure in each market it enters. The company is now one of the largest payments players in the Philippines, overcoming the region’s challenging and long-standing reliability and infrastructure hurdles.
“We will continue to deliver access to Xendit’s payments products and services to enable more businesses and people in the region to participate in the digital economy,” Tessa Wijaya, co-founder and COO at Xendit, said. “Xendit will continue to expand into new markets – like Thailand, Malaysia and Vietnam – where we can identify a need that doesn’t exist, similar to what we did in the Philippines. We plan to diversify our products with value-added services, like lending programs we’ve already started in Indonesia.”
With 61% of the 670 million population under 35, Southeast Asia offers a compelling environment for innovation, disruption and investment. The next generation digital entrepreneurs are quickly moving online. This surge in growth is creating better living standards and increasing consumer demands, particularly in e-commerce and fintech.
“Payments are a crucial component for online businesses and we believe Xendit is capturing a formative opportunity in Southeast Asia,” said Luca Schmid, General Partner at Coatue. “Xendit’s deep local expertise, modern tech stack and customer-centric approach has created a digital payments platform that is helping transform how Southeast Asian businesses transact. Coatue is delighted to partner with the Xendit team for the next phase of their journey.”
“The payments infrastructure market opportunity in Southeast Asia is massive, and Xendit is capturing it with its world-class payments technology,” Nikhil Sachdev is the Managing Director of Insight Partners. “The company’s strong leadership team and excellent customer reviews, coupled with its incredible traction across Southeast Asia, have made Xendit the dominant player in the region. Insight is thrilled to partner with Moses and the team as they scale their operations.”
With more than 3,000 customers, Xendit’s competitive differentiator is its deep understanding of local customer needs combined with global technology. This allows Xendit to deliver hyper-localized products to help startups scale while also serving some of Southeast Asia’s largest merchants, including Samsung Indonesia, GrabPay, Ninja Van Philippines, Qoala, Unicef Indonesia, Cashalo and Shopback.
This Series D funding follows Xendit’s Series C funding round led by Tiger Global Management last year. Xendit is also the first Indonesian-based tech startup to have passed through the YCombinator incubator and is the number one Southeast Asian company in the YC Top 100.