NextPay, a fintech startup company from the Philippines, has big ambitions in becoming a digital bank.

The startup has just raised $125,000 in pre-seed funding from Silicon Valley’s Y Combinator, making it among the first 5 Philippine-based tech companies to be funded by the world renown accelerator.

The funds will be used to further expand the company’s digital banking services primarily for small and growth-stage startups in the Philippines.

NextPay wants to become the banking platform for SMEs

Founded by Don Pansacola and Aldrich Tan, the NextPay serves as a digital banking platform that provides emerging firms access to financial services.

“NextPay seeks to introduce more payment acceptance methods, virtual credit cards, and other digital solutions for businesses to manage their cash flow better,” says NextPay CEO, Pansacola.

According to the founders, the company has already processed over $2.5 million in digital transactions for more than 100 businesses since its launch in 2020.

Y Combinator is a US startup accelerator

Launched in 2005, Y Combinator is a seed money startup accelerator based in the US that has invested in more than 2,000 companies.

Among some of them include unicorn companies such as Dropbox, Twitch, Airbnb, Reddit, DoorDash, and Stripe.

With the new funds provided by Y Combinator, the firm announced that NextPay will also provide a smooth transactions for MSMEs in order to help them focus more on their operations.