Philippines based Fintech firm SquidPay Technology Inc. has acquired Php 100 million (appr. $2.08 million) in funding through a Series A round and Php 100 Million (appr. $1.04 million) line of credit – which was arranged by the Eastern Securities Development Corporation (for the company’s first round of funding this December). SquidPay now has a post-money valuation of Php 1.1 billion (appr. $22.89 million).
Marvin Dela Cruz, CEO at SquidPay Technology Inc., noted that the company was a bit surprised because they weren’t expecting funding to come until the late first quarter of 2021. Marvin added that they’re now confident that there are people “who strongly believe in what SquidPay can achieve.”
The funds raised will be used to make the Fintech firm’s services more accessible. The firm’s management confirmed that they’ll be setting up kiosks and business centers at various locations throughout the country by 2021.
Established in May 2020, SquidPay aims to offer convenient and efficient contactless payment options to commuters, merchants, and transport groups in the Philippines.
SquidPay plans to support a cashless economy by offering a free payment platform. The Fintech firm intends to facilitate transactions through an instant electronic payments system. As first reported by MSN, the new platform will also support collections with stored value cards, QR codes, and mobile apps.
SquidPay will come with several other features such as expense monitoring. The app’s developers intend to help the private and public sectors in the country with adjusting to the “new normal” following the COVID-19 outbreak.
SquidPay has teamed up with several national agencies, local government departments, banks, private organizations, public utility vehicle operators, and other transport systems to provide a range of Fintech services.
SquidPay is working with model City Baguio and claims that around 35% of the city’s residents have signed up to use its payments platform (as of November 2020). The city government plans to transform Baguio City into the Southeast Asian country’s first ever “smart city.” SquidPay’s management noted that they expect to serve 50% of all Baguio residents by the end of 2020. Users now have the option to use their SquidCard to make payments while commuting, shopping, and dining.
Digital payments are on track to grow in the coming years, which is consistent with the Bangko Sentral ng Pilipinas’ (the nation’s central bank) goal of switching from cash to a digital economy. SquidPay plans to help with achieving this goal by serving the nation’s unbanked and financially underserved residents. The company will focus on offering everyday payments solutions so that modern financial services are accessible through its intuitive and user-friendly Fintech platform.