The path that led to PayMongo’s crisis

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It’s a common saying that hindsight is 20/20. When things go wrong, it’s easy to look back and see all the warning signs and red flags. But when you’re in the thick of it, it can be hard to figure out whether what’s going on is something to worry about or just a growing pain you’ve got to push through.

This certainly seems applicable to PayMongo. The Philippine fintech startup backed by Y Combinator and Stripe is currently facing some difficult issues, with its future looking uncertain. The firm seemed like it was on the up, but things have taken a turn – and according to several ex-employees, this was the culmination of several factors.

Today we look at:

• What led to the crisis at PayMongo, according to insiders
• A Malaysian fintech startup that’s raised some funds
• Other newsy highlights such as Ninja Van’s automation goals and Animoca Brands’ latest fundraise

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What happened at PayMongo?

Image credit: Timmy Loen

A few weeks ago, we reported on how PayMongo’s future looks uncertain in the face of a board investigation against CEO Francis Plaza, a falling out among its leadership team, the ousting of two of the firm’s four co-founders, and allegations of questionable spending and employee harassment against senior leaders.

Here’s what led to this crisis, according to some insiders.

• Personal and professional: Those who found themselves in the PayMongo co-founders’ “inner circles,” such as early employees or those who the leaders personally hired, often had their careers fast-tracked, according to several former staff members. Two of the firm’s co-founders were also romantically involved with employees, sources say.
• A lack of balance: The lack of accountability in PayMongo became more apparent after co-founder Edwin Lacierda, who was also the startup’s COO, left the firm in 2021. He was the one co-founder who instilled and demanded accountability from employees, and with his departure, his absence as a “counterbalance” was felt, according to a former staff member.
• Indecisiveness and uncertainty: Compared to the other co-founders, Plaza and former chief commercial officer Luis Sia were relatively “hands off” from the firm’s day-to-day operations, according to ex-employees. The former’s indecision impacted product strategy, allocation of engineering resources, and the speed of product development, says another source.

Read more: What caused PayMongo’s crisis? Insiders tell us

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