Southeast Asia-born Paypal competitor 2C2P secures $2 million funding

2C2P, an online payment processing company, has concluded a $2 million Series B financing round, led by $1.5 million from an undisclosed investor and $500,000 from Japan-based GMO Payment Gateway, Tech in Asia has learned. The deal was closed six months ago but wasn’t covered by any media.

Founded in 2003 and headquartered in Singapore, the company aims to solve online payment problems in Southeast Asia, a tough market for e-commerce since many consumers don’t own credit cards.

It’s sometimes referred to as a startup that’s putting up a fight against Paypal. 2C2P began as a B2B focused platform but over time expanded its product line to B2C with payment processing services such as 123 service, allowing people without credit or debit cards to pay on e-commerce sites.

As of today, 2C2P is valued at $16 million, Aung Kyaw Moe, founder and Group CEO of 2C2P, tells Tech in Asia. The startup has processed over $500 million worth of online payments in 2013, with annual revenue of roughly over $2 million. 2C2P’s goal is to maintain a 30 to 50 percent growth in yearly transactions.

With offices in nine countries – Cambodia, Hong Kong, Indonesia, Laos, Malaysia, Myanmar, The Philippine, Singapore, Thailand – 2C2P currently has 56 staff and is adding an average of two to four new members monthly.

Aung says that the investment will be used for market expansion, strengthening the company in existing markets and adding more products.

2C2P had previously secured seed funding from Expara IDM Ventures under the i.JAM Microfunding Scheme, and a $1 million Series A round from Digital Media Partners.

(Editing by Terence Lee)