Exclusive: Fintech firm Volopay to invest $25m in SEA, India expansion

Volopay, a Singapore-based fintech startup, will invest US$25 million to fuel its expansion into India, Indonesia, and the Philippines by the end of the third quarter this year, the company told Tech in Asia.

Volopay will invest US$15 million to make inroads into India by the end of the month, the rest of the capital will go toward the launch of its operations in Indonesia and the Philippines by the end of Q3.

Volopay co-founders Rajesh Raikwar (left) and Rajith Shaji / Photo credit: Volopay

Founded in 2019, Volopay offers expense approvals, corporate cards, bill payments, expense reimbursements, credit, cashback, and accounting automation on one platform. It offers a 2% cashback on all software subscriptions, hosting, and international travel through its corporate card for startups.

The company will use funds raised from its series A financing round led by Justin Mateen, founder of Tinder and Jam Fund, for expansion. It will also launch operations in West Asia by Q1 of 2023.

“We believe India and Indonesia will contribute 50% to 60% of our topline within the next three years,” Volopay founding member Rohit Bhageria told Tech in Asia.

While Volopay has not initiated plans for capital usage in Indonesia and the Philippines, the funds set aside for entering India will be used for product development, ramping up hiring, and sales and marketing.

See also: Series SEA: Who’s investing in the region’s fintech startups?

Currently, the firm has 180 employees across India, Singapore, Australia, the Philippines, and Indonesia. It aims to add another 20 staff members by the end of the year in product, customer support, and sales roles.

Volopay said it has “healthy” gross profit margins at its Singapore unit and positive unit economics. However, the company has not hit profitability because of heavy investment in expansion plans, it added.

Volopay has also partnered with Visa’s Fintech Fast Track Program to issue its own Visa cards to client businesses in the Asia Pacific. The program also gives the Singapore-based fintech firm access to guidance from Visa.