Fintech Unicorn Xendit to Acquire Multifinance Company

Financial technology (fintech) startup Xendit confirmed that it would buy shares in multi-finance company PT Globalindo Multi Finance. This is related to Globalindo Multi Finance’s plan to merge with PT Emas Persada Finance.

“What is currently being announced in the media is the corporate action plan from Globalindo Multi Finance regarding the change of ownership. Xendit group will later become one of the owners of Globalindo Multi Finance,” said Xendit’s public relations department, Wednesday (13/4).

However, he has not detailed the size of the shares to be purchased or the portion of Xendit later. “We will inform you further when the administrative process is complete,” he said.

He also declined to comment on Xendit’s future product development plans from the acquisition. “However, the presence of financing products will add value to our service,” he said.

Xendit raised US$ 150 million or around Rp 2.1 trillion in a Series C funding round in September 2021. After receiving fresh funds, this payment gateway fintech startup is said to be a unicorn.

Unicorn is a term for startups with a valuation of over US$ 1 billion. While the decacorn is above US$ 10 billion. Funding for Xendit was led by Tiger Global Management. Other participating investors are Accel, Amasia, and Goat Capital.

Xendit’s Expansion

Xendit will use the fresh funds for expansion to other countries. Currently, fintech is present in Indonesia and the Philippines. “Our main focus right now is to further regionalize and expand the product range,” said Xendit Chief Operating Officer Tessa Wijaya as quoted from TechCrunch, late last year (14/9/2021).

In addition, Xendit plans to target Micro, Small and Medium Enterprises (MSMEs) this year. Head of Corporate Communications Xendit Ami Windarti said, Xendit targets MSMEs in the retail, clothing and culinary sectors.

The fintech also plans to list its initial public offering (IPO). Xendit Co-Founder and CEO Moses Lo said the company was interested in an IPO on the IDX.

“The IPO on the Indonesian stock exchange is very interesting. Its development will continue,” he said at the Wild Digital Conference, late last year (10/11/2021). However, he did not specify the exact timing of Xendit’s IPO.

Moses said that the company is still in the growth stage. Even so, he is interested in listing initial shares in Indonesia because it is supported by regulators such as the IDX and the Financial Services Authority (OJK). “Regulators are willing to support a public market for unicorns,” he said.

Been a Unicorn since the end of 2021

Xendit itself is said to have entered the ranks of unicorns around September 2021. At that time, the company received series C funding worth US$150 million or around Rp2.1 trillion. It was the capital injection that made this startup on the list of Southeast Asian unicorns.

The Series C funding round was led by Tiger Global Management with participation from long-time investors such as Accel, Amasia, and Justin Kan’s Goat Capital. Also Read: Behind the Divestment of Sido Emerging Shares (SIDO) by Affinity

The funds themselves when received are prepared to expand business expansion to certain countries in Southeast Asia. This expansion action is certainly not without reason. The reason is that by 2021, Southeast Asia’s digital economy is predicted to exceed US$100 billion and is projected to triple to more than US$300 billion by 2025.

“We are seeing a tremendous shift to digital-first. Whether the business is a small toto shop on Instagram or the largest company in Southeast Asia, it is now clear that businesses need to have a digital presence,” said Xendit Co-founder and CEO Moses Lo in an official statement.

According to him, Xendit’s digital payments infrastructure is enabling a new class of entrepreneurs in Southeast Asia to start and scale their payments faster.

“What AWS has done for Compute, Xendit has done for payments,” he explains. He adds, the company builds highly localized products in a region with more than 23,000 islands and diverse customer needs.

Xendit has been able to build the first products on the market, provide unrivaled customer service, and quickly adapt to a dynamic region.