Accel, Y Combinator pour $64.6m into Indonesian payment gateway Xendit

Xendit, a payment gateway company headquartered in Jakarta, has secured US$64.6 million in a series B round led by Accel.

Y Combinator also participated in this fundraise, which has increased the startup’s total capital to US$88 million.

Xendit enables businesses and merchants to accept payments from credit and debit cards, e-wallets, retail outlets, and virtual accounts, eliminating the need to do integrations with each provider.

Since it was established in 2015, the company has expanded its services to include fraud detection, lending, and tax management.

It plans to use the newly raised funds to scale its digital payments infrastructure to small and medium-sized businesses across Southeast Asia, where it currently operates in two markets: Indonesia and the Philippines.

The region is “massively complex” and has diverse regulatory and technological challenges, said Xendit CEO and and co-founder Moses Lo. “Trying to build the businesses of tomorrow on yesterday’s infrastructure is holding Southeast Asia’s businesses back,” he added.

Tech in Asia has reached out to Xendit for comment, but the company declined to disclose its current valuation.

Xendit says it processes more than 65 million transactions with US$6.5 billion in payment value annually, serving clients that include major companies like Traveloka, TransferWise, and Grab.

Soon after it was founded, Xendit was accepted to Y Combinator, the first from Indonesia to join the accelerator. This year, it was named as one of Y Combinator’s top 100 companies globally.