Filipino fintech firm SquidPay banks $2m in series A funding

Filipino fintech startup SquidPay Technology said it has raised 100 million pesos (roughly US$2 million) in its series A round and a separate line of credit worth 100 million pesos, arranged by Eastern Securities Development Corporation.

The round gave SquidPay a post-money valuation of 1.1 billion pesos (US$22.9 million), according to a company statement.

Photo credit: Squidpay

Launched just this May, the startup provides contactless payments services for Filipinos through stored value cards, QR codes, and a mobile app. SquidPay has partnered with national agencies, local government units, banks, and transport systems to offer its suite of fintech offerings.

The company is owned by local entrepreneur Marvin Dela Cruz. Prior to SquidPay, he co-founded U-Hop, which provides on-demand transport services to corporations and hotels as well as ride-sharing and food delivery.

As of last month, SquidPay said it has been working closely with the municipality of Baguio and estimates that 35% of the model city’s population are registered users. It aims to bump that number up to 50% of all Baguio residents by the end of 2020.

The company said it plans to use the new funds to quickly widen its reach by establishing kiosks and business centers in key areas around the Philippines next year.

In November, it was reported that SquidPay is acquiring a 55% stake in local investment holding company Premiere Horizon Alliance for roughly US$20.7 million. SquidPay aims to use the firm as a vehicle for a backdoor listing at the Philippine Stock Exchange, according to a report.