Indonesia-based payments Fintech Xendit has announced that it plans to relocate its financial hub to Malaysia.
As reported by Fintech News Malaysia, the Fintech Unicorn confirmed these plans during a speech by Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz (which took place during the launch of Malaysia’s Capital Market Plan 3).
The Indonesian Fintech company recently became a Unicorn (valued at $1 billion+) with a $150 million Series C investment round that was led by Tiger Global Management.
The relocation of Xendit’s financial hub to Malaysia has been announced after a strategic investment from the Dana PENJANA program.
Tengku Datuk Seri Zafrul Tengku Abdul Aziz stated:
“This is a testament of how an initiative such us Dana PENJANA has spurred innovation and provided risk capital to nurture new businesses and startups in Malaysia.”
The Dana PENJANA project aims to serve as a matching fund-of-funds program, which is reportedly a part of the Short-Term Economic Recovery Plan (PENJANA). The Malaysian government has agreed to match RM 600 million, on a 1:1 basis, to the capital acquired by the VC fund managers from overseas and private local investors, with a planned allocation of RM 1.2 billion.
This development has come after the Malaysian government’s recent announcement that involves establishing 5 unicorns within the next 5 years.
In July of this year, the used automobile marketplace Carsome became Malaysia’s very first unicorn, which also included investments from the Dana PENJANA Nasional program.
As covered in March 2021, Xendit, an Indonesia-based digital payment infrastructure provider, announced that it secured $64.6 million through its Series B investment round, which was led by Accel with participation from YCombinator.
Founded in 2014, Xendit is a fintech that provides payment solutions and simplifies the payment process for businesses in Indonesia, the Philippines, and Southeast Asia, from SMEs and e-commerce startups to large enterprises.
As noted by its management:
“Xendit enables businesses to accept payments, disburse payroll, run marketplaces and more. The platform is known for its speed (fast integration, builds), simplicity (easy integrations, pricing), and world-class 24/7 customer support. Amidst the fragmented payment landscape in Southeast Asia, Xendit enables businesses to accept payments from direct debit, virtual accounts, credit and debit cards, eWallets, retail outlets, and online installments.”
With Xendit, businesses can access:
- The most reliable payment solution for Indonesia, the Philippines, and Southeast Asia
- Best-in-class fraud detection with a privacy-forward approach
- API deploying in days rather than months
- 24/7 customer service