Indonesian fintech startup Xendit has achieved unicorn status, with a recent $150 million funding round led by Tiger Global. The funding round was backed by participation from existing investors Sequoia India, Stripe, and others. This marks Tiger Global’s first major investment in an Indonesian fintech company and speaks to the country’s potential for fintech growth.
Let’s take a closer look at why Tiger Global decided to invest in Xendit.
Overview of Xendit
Xendit is an Indonesian fintech company focused on creating electronic payment solutions. Its payment services make it easier for merchants to accept different types of payments, such as credit card, debit card and digital wallet payments, online or in-store. Xendit also offers e-commerce solutions to help merchants set up online shops quickly and easily.
Indonesian fintech has emerged as a major player in the Southeast Asian market, providing mobile money and digital payment solutions for individuals and businesses. More than 45 million regional merchants have used its services.
On June 18 2020, Xendit announced that it has received $150M in fresh funding led by Tiger Global Management, a leading global venture capital fund. This makes Xendit the latest ‘unicorn’ company – technology startups with US$1 billion valuation or more – in Southeast Asia.
This marks Tiger Global’s first investment into an Indonesian company since it entered the
market in 2011 with its investment into Tokopedia. The Series C funding will be used to further accelerate Xendits growth plans both within Indonesia and overseas markets; boost financial inclusion through innovative merchant onboarding strategies; partner with traditional financial institutions to provide access to banking products; invest further into growth areas such as analytics capabilities; enhance service offerings for corporate customers across verticals; upload backend infrastructure; and expand its diversity initiatives among other things.
Overview of Tiger Global
Tiger Global Management, LLC is an American hedge fund founded in 2001 and based in New York City. Founded by Chase Coleman and Feroz Dewan, the firm primarily invests in private companies worldwide. Tiger Global invests mainly in internet and software companies, focusing on developing markets such as India, Southeast Asia and Latin America. The firm has a long history of successful investments into some of the largest tech companies such as Facebook Inc., LinkedIn Corp., Flipkart Online Services Pvt Ltd., Spotify Holding AB and many more.
Tiger Global’s latest investment is a $150M venture capital round into Indonesian fintech Xendit with existing investors Sequoia Capital, Openspace Ventures and B Capital also participating. This funding round makes Xendit’s valuation more than $1B, making it one of Indonesia’s startups to enter the Unicorn Club category with billion dollar market capitalizations. With this investment from Tiger Global Management, Xendit is well placed to transition from a challenger to an established payments provider across Southeast Asia’s biggest commerce markets (Indonesia).
Market Analysis
Recently, Indonesian fintech Xendit has become a unicorn, with $150M in fresh funding led by Tiger Global.
This begs the question – why has Tiger Global decided to invest in Xendit? It is important to analyze the market and its dynamics to answer this. Such an analysis can help to shed light on the reasons behind the Tiger Global investment in Xendit.
Overview of the Indonesian Fintech Market
The Indonesian financial technology (fintech) market is fast developing, with numerous opportunities for digital disruption and a large consumer base for innovative products and services. In 2020, the market size of fintech in Indonesia was valued at USD 750 million and is expected to grow at a compound annual growth rate (CAGR) of 32.3% over the next five years.
Indonesian fintech companies are leveraging technology to provide payment services across retail banking, e-commerce, investments and insurance sectors. Fintech companies in Indonesia are focusing on launching innovative products in the payments space and investment solutions that cater to customers’ evolving needs. This has enabled them to become a major player in the country’s digital transformation. Some popular fintech services are digital wallets, mobile banking apps, real-time payments and peer-to-peer (P2P) payments.
The Indonesian government has supported fintech firms by providing regulatory incentives such as tax breaks, exemption from certain business rules and revised industry standards that allow increased number of transactions per second with better fraud detection capabilities.
Additionally, various venture capital firms are investing in Indonesian fintech startups for their rapid growth potential. One such example is Tiger Global — one of the world’s most influential venture capital firms which recently invested $150 million into Indonesia’s leading fintech firm Xendit taking its valuation to more than a billion dollars (unicorn status). This indicates a clear demand for innovative solutions within not only this region but around the world.
Overview of the Global Fintech Market
The global fintech market is estimated to be worth over $125 billion and will reach over $500 billion by 2025. This represents an annual growth rate of around 28% and highlights the growing demand for innovative financial services from consumers, businesses, and governments.
The global fintech market can be segmented into payment solutions, personal financial management (PFM), cryptocurrency, data analytics solutions, robo-advisory services, online/digital banking solutions, insurtech solutions, and other related services. The demand for these innovative solutions has been driven largely by the rise in internet and mobile penetration worldwide and local advancements in regulatory frameworks that have made offering financial services online or via mobile devices easier. As part of this growing ecosystem, some platforms now allow users to sell crypto with credit card, providing a convenient and accessible way to convert digital assets into traditional currency.
From a regional perspective, North America accounts for the largest share of the global fintech market due to its well-developed economy and early adoption of payments technology. However, Europe holds the highest growth potential due to its well-regulated banking environment and stringent consumer protection laws. In addition, emerging regions such as Asia-Pacific (especially India) are also expected to witness a high investment in fintech companies shortly due to large unaddressed customer segments willing to access financial services online or through digital channels quickly becoming available.
Indonesia’s thriving fintech sector has seen numerous investments from international investors such as Alibaba Group’s Ant Financial Services group; Tencent Holdings; Foxconn Technology Group; Chinese investment firm Sequoia Capital China; GIC Pte Ltd (Temasek Holdings); China Investment Corp.; Goldman Sachs; Summit Partners; Morgan Stanley Expansion Capital ; JPMorgan Chase & Co’s electronic trading platform Tradeweb Markets LLC.; iCarbonX Investment Pte Ltd., PayPal among others thus making it one of Asia’s most sought after destinations of investment amongst Fintech startups. In addition, Tiger Global recently led a $150M funding round in Indonesian payment fintech startup Xendit making it a unicorn valuing at over USD 1 Billion according Techcrunch News making it a prime example why Fintech Investment Companies have been turning their heads towards this region.
Xendit’s Growth
Xendit, an Indonesian fintech startup, has recently seen tremendous growth. Its new status exemplifies this as a $1.3 billion-valued unicorn, following a $150M Series C funding round led by Tiger Global Management. This investment has allowed Xendit to expand its digital payments solutions to the Indonesian market, with ambitions to extend its services to Southeast Asia.
Let’s take a look at how Xendit’s growth and partnership with Tiger Global can benefit its users.
Xendit’s Expansion into Indonesia
Launched in 2016, Xendit has continued to grow rapidly in Indonesia and has quickly become the leader in digital payments. Its services include payment processing, invoicing, business loans and cross-border payments. The company’s mission is to make it easier for consumers to access and use financial services.
Xendit’s engineers have created a suite of smart products that leverage advanced technologies including machine learning, big data analytics, open APIs and automated fraud detection. This makes it easy for partners to integrate seamlessly with Xendit’s platform without worrying about security risks or financial fraud.
Recent investments from venture capital firm Tiger Global Management have further propelled the company’s success. The investment will help Xendit expand into new markets and strengthen its position as a leader in the Indonesian fintech sector. Their success can be accredited not just to their breakthrough technology but also their focus on customer service and user experience; as evidenced by the recognition they have received by organizations such as TechInAsia: “Best Indonesia Fintech Startup 2018”, along with other prestigious awards in 2019 such as “Favorite Fintech Company” at ASEAN Rice Bowl Awards 2019.
Xendit’s dedication to customer service has been key in securing more repeat customers and gaining the trust of more potential users both domestically and abroad. It is this commitment which Tiger Global recognised when investing in them late last year, taking them to Unicorn status – making Xendit one of the greatest success stories from Indonesia’s fintech sector so far; proving there is a great deal of potential for companies operating within Southeast Asia if they provide reliable service coupled with great user experience.
Xendit’s Expansion into Global Markets
Based on the Indonesian fintech Xendit’s recent success, the company is now officially a unicorn, having raised $150M in fresh funding led by Tiger Global. This marks the next step in Xendit’s growth into global markets to help more people access financial services securely and easily through technology.
This investment is part of Xendit’s broader plans to expand its presence in key markets, beginning with Asia-Pacific countries in Indonesia, Philippines, Vietnam and Australia. The additional $150M will accelerate product development by building on existing platforms, creating new ones for further market penetration and offering users an even wider range of services. Xendit will also use the funds to evolve their omnichannel payment infrastructure capabilities and build international collection networks across different countries.
Xendit hopes this investment will help them become a leader in Southeast Asia’s fintech industry while providing innovative payment solutions and excellent customer support worldwide. By leveraging powerful technology and Investor Tiger Global’s backing, they are poised to become a major player in both global fintech and emerging markets.
Indonesian fintech Xendit is now a unicorn, with $150M in fresh funding led by Tiger Global
Indonesian fintech Xendit recently announced a $150M investment led by Tiger Global. This investment has made Xendit a unicorn, joining the ranks of many prestigious tech companies that were once privately held. In addition, the investment has been seen as a signal of Tiger Global’s confidence in Xendit’s growth and potential.
Let’s examine why Tiger Global decided to invest in Xendit.
Reasons for the Investment
Tiger Global, a New York-based private equity firm, has led an investment into Xendit, a fintech startup based in Indonesia. The amount of funding was not disclosed, but the company described it as “a significant growth round”. This investment brings Xendit’s valuation to $1.2 billion, making it the first unicron in Indonesia and one of the few global unicorns outside of China and the U.S.
The reasons for Tiger Global’s investment in Xendit include:
- The growth potential in Indonesia’s fintech sector.
- Market penetration of Xendit’s payment infrastructure platform.
- Alignment with Tiger Global’s aggressive approach to investing in startups.
Tiger Global has noted that they were impressed by Xendit’s rapid customer acquisition and its technical capabilities. This unique combination piqued their interest, leading them to invest money into the fintech startup. With a population of 270 million, Indonesia boasts tremendous potential for tech companies like Xendit to grow their user base and solidify their market position. Furthermore, many people are yet to enter into formal banking systems and digital payments enable inclusion which can increase financial literacy among Indonesians while providing convenience at an affordable cost.
Xendit already enjoys high customer trust due to its partnerships with well established banks such as BCA (Bank Central Asia). Moreover, its ability to process millions of transactions daily stands out — especially compared to other B2B providers — making it attractive for online merchants or businesses who wish to join the Indonesian digital economy. As various industries across Indonesia modernize their operations, there is no doubt that companies like Xendit present ample opportunities for Tiger Global and other investors alike.
Benefits to Tiger Global
Tiger Global’s investment in Indonesian fintech Xendit marks another step towards the venture firm’s expansion into global markets. The investment provides Tiger Global with a range of benefits, including:
– Access to a dynamic and rapidly growing market – Indonesia is one of the fastest-growing economies in the world, with a young and digitally-savvy population. Xendit provides Tiger Global access to the Indonesian market, which is expected to become an important hub for international capital.
– Diversified portfolio – Adding Xendit to its portfolio provides Tiger Global access to a wider range of technologies and markets beyond its traditional focus on technology investments.
– Expected returns – By investing in Xendit, Tiger Global can expect increased returns as the company matures. As a result, this investment benefits the venture firm and its investors in the long run.
– Increased public awareness – As part of the unicorn club, Xendit now enjoys greater public visibility which can help create further opportunities for Tiger Global’s other investments.
Conclusion
Tiger Global’s investment in Indonesian fintech Xendit is a testament to their commitment to the digital economy in Southeast Asia. With a total of $150 million in fresh funding, Xendit has now become a unicorn.
This investment is a major milestone in advancing the digital economy in Southeast Asia, and Tiger Global’s commitment to it is a positive sign.
The Future of Xendit
The Indonesian fintech Xendit is now a unicorn, with $150M in fresh funding led by Tiger Global. The investment marks a huge milestone for the company, which has made great strides since its launch in 2016.
Xendit brings great promise to the digital payments industry and is well-positioned to continue its rapid growth trajectory. Its strengths lies in its focus on providing a range of payment solutions including online payments, digital wallets and bank transfers that are both cost effective and secure. Additionally its payment platform supports multiple local currencies making it ideal for businesses looking to expand into new countries.
As Xendit grows, it will benefit from access to Tiger Global’s resources and support as it scales operations in multiple markets worldwide. With this new partnership, Xendit is poised to become an industry leader in customer service, driving ease of use with seamless payments solutions at every corner of the globe.
Through its cutting-edge technology, smart products and customer-centric approach, Xendit is sure to spark innovation within the ecommerce space providing customers with more convenient ways of paying for goods and services online; ultimately setting a standard that others will strive towards.
The Future of Tiger Global
The recent investment of Tiger Global in Indonesian fintech Xendit shows that the venture capital firm has a keen eye for potential deals in emerging markets. This decision confirms Tiger Global’s current strategy of investing in highly valued internet companies and lesser-known startups across different industries.
Tiger Global’s focus on innovative and high-growth startups, rather than just established tech giants, is expected to further strengthen its status as one of the leading venture capital firms in terms of investing in Southeast Asia. Its strong presence will be a key factor in helping fuel the digital transformation that is currently underway.
Since its first investment more than two decades ago, Tiger Global has shown tremendous growth and success by leading investments into various sectors such as e-commerce, media & entertainment, machine learning and health technology. As it continues to make sizable investments into startups across multiple tech industries, it can be expected that Tiger Global will remain one of the leaders for venture capital firms for years to come. The upcoming months should bring even more opportunities for further investments and notable successes ranging from Indonesian fintech companies to international tech unicorns.
tags = Indonesian fintech, Xendit, unicorn, $150M, Tiger Global, xendit indonesian series accelann azevedotechcrunch, Jakarta-based, founded in 2015, Moses Lo
