Philippine banking software firm Netbank closes series A funding

The busy streets of Manila / Photo credit: Shutterstock

Philippine-based fintech firm Netbank has raised an undisclosed amount in a series A funding round led by Beenext, with Kaya Founders and Oak Drive Ventures participating.

Founded by Gus Poston and David Paulo Dela Paz in 2019, Netbank claims to be the first banking-as-a-service platform of its kind in Southeast Asia. It offers businesses a range of services that simplify opening accounts, managing payments, and handling SME loans through partnerships with financial institutions.

The company said it turned profitable in March, claiming that its deposits have grown by 14x, loans by 5.5x, and assets by 16x within the past 12 months.

This series A raise is Netbank’s first VC-backed round, according to Poston.

Funding details

• Funding amount: Undisclosed
• Lead investors: Beenext
• Other investors: Kaya Founders, Oak Drive Ventures
• Stage: Series A
• Source

Poston said Netbank’s growth has been driven by the Philippines’ underdeveloped SME lending market. “The level of SME lending as a percentage of GDP in the Philippines is approximately 3%, versus 37% in Thailand,” he tells Tech in Asia. 

The executive attributes this to the high level of risk aversion within banks in the country, and the technical challenges of onboarding new clients.

The company said it currently has around 20 different financial solutions in the pipeline. In the long term, it also wants to expand outside the Philippines.

See also: Funding Societies swipes right on payments in SEA

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