NextPay, a digital banking platform for small businesses and entrepreneurs in the Philippines, has secured US$125,000 in pre-seed funding from Y Combinator (YC).
With this, NextPay becomes the fifth Filipino tech startup to be backed and selected by YC after Kalibrr (2013), PayMongo (2019), Avion School (2021), and Dashlabs.ai (2021).
Y Combinator is popularly known as the launchpad of many iconic startups such as Airbnb, Dropbox, Stripe and Twitch.
NextPay said in a statement that fresh funds will be used to expand its line of digital banking services for payments, credit and personal cash management.
The fintech firm is also looking to partner with human resource and accounting software companies to further streamline enterprise financial operations.
Launched in 2020, NextPay is an alternative to bank accounts for small businesses and entrepreneurs. Its platform enables companies to collect customer payments via digital invoices, manage their cash, and pay their employees, suppliers, or bills in batches to any bank or e-wallet.
Also Read: Why digital lending services for MSMEs are the next big thing in SEA
NextPay operates on a pay-per-use model and does not require any set-up fees and minimum balances.
The company disclosed it has processed more than US$2.5 million worth of transactions for over 100 businesses in the Philippines.
“Our goal is to empower smaller businesses with a spectrum of banking services that were previously unavailable to them because of the steep requirements and high fees that are typically aimed at larger, more developed companies that can afford them,” said Don Pansacola, CEO and co-founder of NextPay.
“NextPay wants to help the Philippines bounce back. We want to enable growing enterprises to maximize their capital, reach more customers, and generate more jobs and opportunities. This then stimulates economic transactions and creates a demand for stronger partnerships. It’s a domino effect,” he added.
“The opportunity to provide digital financial services to these market segments, which make up 99.5 per cent of all businesses, and are the lifeblood of the Philippine economy, is huge. Through our platform, MSMEs can conduct their transactions seamlessly and allow business owners to free up resources and focus on their operations,” noted Aldrich Tan, co-founder and Chief Experience Officer.
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Image Credit: NextPay
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