Xendit Invests in Philippine Fintech Startup Dragonpay

Startups fintech Philippines, Dragonpay, announced that it has secured strategic funding from Xendit. This action follows the expansion carried out by Xendit to Philippines market since last year; this is their second base of operations after Indonesia.

Founded in 2010, Dragonpay provides payment solutions similar to those provided by Xendit, including capabilities payment gateway. In the Philippines market itself, Covid-19 is accelerating the adoption of the payment system online, because previously cash transactions still dominate.

This investment continues the series B funding that Dragonpay received in 2020. It is hoped that Xendit's support can accelerate product innovation and service expansion so that it can reach more merchants [on line] adopt digital payment services.

Indonesian Startups in the Philippines

Gojek, JavaMifi, Kredivo, Passpod Dana Cita, Investree, and Kredit Pintar are a list of local startups that have started selling their services in the Philippines.

On one occasion, Investree Co-Founder & CEO Adrian Gunadi said that the MSME market for business fintech there is still a lot of potential there. Banking has not provided comprehensive services, even though this sector accounts for 35% of the country's GDP, employing more than 60% of the local workforce.

Menurut report e-Conomy SEA 2020, the internet economy in the Philippines has posted GMV of up to $7,5 billion in 2020. It is projected to grow to $28 billion by 2025. With more than 108 million population [second largest in SEA after Indonesia], this market will be significant. Although currently in value it is still ranked 6th after Indonesia, Thailand, Vietnam, Malaysia, and Singapore.

Invest in Filipino startups

One of the venture capitalists who has started exploring the startup ecosystem in the Philippines is Venturra Discovery. Earlier this year they invested in Podcast Network Asia (PNA), startups podcast there.

To DailySocial, Partner Venturra Discovery Raditya Pramana said that the Philippines has many unique features. Not only is the population large, but demographically the population is relatively young, buying power also increasing.

Regarding the hypothesis to invest in startups podcast there, he said, Filipino culture is heavily influenced by American culture. Content podcast which are already plentiful and of good quality in America become popular in the Philippines and that is what makes the industry podcast there can develop earlier than other Southeast Asian countries.