Higala CEO Winston Damarillo
Higala, an inclusive banking infrastructure startup in the Philippines, has closed its seed funding round at US$4 million.
The investors include Talino Venture Studios, Chemonics International, Kadan Capital, Tenco Capital, and 1982 Ventures.
This round follows Higala’s seed extension round led by 1982 Ventures in March this year.
Also Read: Talino Venture Studios launches, invests in inclusive instant payment system Higala
The fresh capital will support the company’s push to digitise rural banks and microfinance institutions operating in underserved parts of the Philippines, where access to financial services remains limited.
“This funding will help us bring unprecedented growth to financial institutions and their customers in places bereft of digital enablement,” said Higala founder and CEO Winston Damarillo.
Higala, a registered operator of a payment system, promotes inclusion by lowering the cost of real-time payments, helping financial institutions price their instant payments reasonably. It also aims to provide inclusive financial solutions to the underbanked and rapidly enable merchants to accept digital payments.
The fintech startup’s open payments platform, SynerFi, is designed to lower entry barriers for smaller financial institutions participating in InstaPay, the Philippines’ real-time payments network. Rural banks already onboarded to SynerFi include Rural Bank of San Antonio, Rural Bank of Lipa City (Batangas), Progressive Rural Bank, Banco Abucay, Rural Bank of Hermosa (Bataan), Money Mall Rural Bank, First Philippine Partners Bank (A Rural Bank), and Lagawe Highlands Rural Bank.
A significant portion of the funds will be used to strengthen SynerFi.
Also Read: How digital banking is driving financial inclusion in SEA
“Connecting rural banks to Instapay and the wider digital ecosystem is not simply an act of digitalisation, but a deeper commitment to accelerate financial inclusion in underserved areas,” said Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer at Rizal Commercial Banking Corporation (RCBC).
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