Coatue, Insight lead Series D for Indonesia's Xendit
Coatue Management and Insight Partners have led a USD 300m Series D round for Indonesian payments infrastructure platform Xendit.
Tiger Global Management, Accel Partners, Kleiner Perkins, EV Growth, Amasia, Intudo Ventures, and Goat Capital also participated. The investment values the company at nearly USD 3bn, Reuters reported.
Tiger Global led a USD 150m Series C last year that also featured Accel, Amasia, and Goat. Total funding to date is USD 538m, with early investors including Convergence Ventures, East Ventures, and Golden Gate Ventures. Xendit was the first Indonesian tech start-up to pass through the Y Combinator incubator.
Xendit provides a technology platform with 24-hour service support that aims to simplify processes around payments, payroll, and marketplace operations for small and large businesses. The idea is to help companies in Southeast Asia’s fragmented payments landscape process transactions via direct debit, virtual accounts, credit cards, debit cards, e-wallets, and online instalments.
The company claims differentiation in deep local knowledge and hyper-localized products. It has more than 3,000 customers, including Samsung Indonesia, Grab, GrabPay, Qoala, Unicef Indonesia, Cashalo, Shopback, Traveloka, Transferwise, Wish, and Ninja Van Philippines.
The Philippines has been the priority expansion market to date. Following a strategic investment in Dragonpay, the leading local payments gateway, Xendit claims to be one of the largest payments players in the country. Similar entries have been planned for Thailand, Malaysia, and Vietnam.
The total value of payments processed has increased from USD 6.5bn to USD 15bn in the past year, with the number of transactions rising from 65m to 200m on an annualised basis. Sales are said to have increased 10% month-on-month since the company's inception in 2016.
The Series D capital will be used to build out the platform and diversify the product offering across geographies in new service areas such as lending, which is already being rolled out in Indonesia. Recent traction on this front includes the launch of direct debit and buy now, pay later services in the Philippines.
Nikhil Sachdev, a managing director at Insight, called Xendit the dominant payments infrastructure player in Southeast Asia, citing positive customer reviews and a strong leadership team. Moses Mo, Xendit’s founder and CEO, has experience in marketing strategy at Amazon and business support services at Boston Consulting Group.
“Payments are a crucial component for online businesses, and we believe Xendit is capturing a formative opportunity in Southeast Asia,” Luca Schmid, a general partner at Coatue, said in a statement. “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.”
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