Instant payment system startup Higala on Tuesday announced it has increased its seed funding to $2.8 million with fresh funds from venture capitalists Talino Venture Studios and 1982 Ventures.
In a news release, Higala said that since its launch last year, it has been expanding financial access by connecting more rural banks, thrift banks, commercial banks, and electronic money issuers to its network, as well as lowering the cost of real-time payments and reducing the on-ramp barrier.
In April 2024, Higala launched its services with lower transaction fees to below P1.
“This funding milestone of Higala will greatly benefit its robust ecosystem, which now includes an instant payment system, a platform bank, and an extensive network of collaborators who are all committed to improving financial system resilience and accelerating the adoption of digital banking,” said Higala CEO Winston Damarillo.
Leading the new seed funding round was 1982 Ventures — a Singapore-licensed venture capital firm that focuses on investing in fintech startups in Southeast Asia.
Among its portfolio companies are NextPay, an SME digital bank in the Philippines; Philippine-based Lista, one of the fastest-growing financial management apps; and Brick, a business payments, data aggregation, and API platform based in Indonesia, among others.
“Higala’s innovative approach to inclusive instant payments is directly aligned with our vision of using fintech to change lives,” said Scott Krivokopich, managing partner at 1982 Ventures.
Higala also announced its plan to launch its platform banking in the second quarter of this year.
The startup’s platform banking is seen to “enable smaller banks and other financial institutions to offer digital payment services, which is a gateway to their access and participation to instant payment systems.”
Last year, Higala partnered with Rizal Commercial Banking Corporation (RCBC) to digital footprint of rural banks and micro-financing institutions.
Under Higala’s network, include the initial 40 participants to RCBC’s SynerFi service and select rural banks that are part of the RCBC’s ATMGo network such as Rizal Microbank, Guagua Rural Bank, SNR Rural Bank, Lagawe Highlands Rural Bank, Rural Bank of Cadiz, Rural Bank of Cabatuan, Rural Bank of Ilog, Marayo Bank, Rural Bank of Roxas, Pangasinan Bank.
The other participants include: Money Mall Rural Bank, Rural Bank of Kapalong, Rural Bank of Solano, Rural Bank of Lebak, First Philippine Partners Bank, Rural Bank of Matag-ob, and Rural Bank of Silay. — BAP, GMA Integrated News
