Billease Raises $11M Series B to Expand 'Buy Now, Pay Later' in the Philippines

BillEase Secures $11 Million Series B Funding to Expand BNPL Services in the Philippines

The landscape of “buy now, pay later” (BNPL) companies is rapidly expanding globally, and the Philippines is witnessing significant growth in this sector. BillEase, a leading BNPL provider within the country, has recently announced the successful completion of an $11 million Series B funding round.

Investment Details and Participants

BurdaPrincipal Investments, the growth capital division of Hubert Burda Media, spearheaded the investment. Additional participation came from Centauri, a collaborative investment initiative between MDI Ventures and KB Investment, and Tamaz Georgadze, the CEO and co-founder of Raisin DS.

BillEase, operating under the umbrella of fintech firm First Digital Finance Corporation, initially launched in 2017. Its first partnership was with the prominent shopping platform, Lazada.

Expanding Merchant Network and Service Offerings

Currently, BillEase facilitates transactions with over 500 merchants. These include major retailers such as Kimstore, a consumer electronics provider, and Philippine Airlines.

The BNPL service is also integrated with several payment gateways, including Xendit, Paynamics, 2C2P, Dragonpay, and BUX.

Furthermore, BillEase offers a dedicated mobile application providing access to personal loans, digital wallet top-ups for services like GCash, PayMaya, Coins.ph, GrabPay, and Shopee Pay, alongside credits for mobile phones and gaming platforms.

Addressing Fragmentation in the Philippine Payment System

Given the fragmented nature of the payment infrastructure in the Philippines, BillEase provides customers with diverse repayment options. These encompass digital wallets, bank transfers, direct debit, linked bank accounts, and over-the-counter payments at locations like 7-Eleven.

This latest funding round elevates BillEase’s total equity raised to approximately $15 million, earmarked for customer acquisition, product development, and talent recruitment.

Differentiating Factors: Credit Building and Financial Inclusion

BillEase distinguishes itself from other BNPL services in the Philippines by enabling customers to establish formal credit histories.

Georg Steiger, co-founder and CEO of First Digital Financial Corporation, explained via email to TechCrunch that BillEase primarily targets the Philippines’ growing middle class, specifically Generation Z and millennials in the early stages of their careers.

“Around 80% of our clientele are new to the formal credit system and lack an existing credit record,” Steiger stated.

A Gateway to the Financial System

BillEase functions as an entry point into the financial system for these individuals. It is currently the sole credit application in the Philippines that is a member of TransUnion, and also participates within the state-owned Credit Information Corporation.

Proprietary Technology and Competitive Interest Rates

Another key differentiator is BillEase’s independently developed credit, fraud, and payment software stack. This allows for instant approval of over 90% of BNPL loan applications.

This streamlined process results in faster checkout experiences and enables BillEase to offer more competitive interest rates, averaging around 3.49% compared to the 7% to 12% typically charged by other BNPL providers, as noted by Steiger.

Merchants benefit from customizable installment plans, offering options ranging from 10 to 30-day repayment terms for smaller purchases, to four-installment or monthly payment options for larger purchases, with the flexibility to offer interest-free loans.

Leveraging Alternative Data for Credit Assessment

Recognizing that the majority of BillEase’s customers lack a traditional credit history, the company utilizes “a broad spectrum of alternative data sources to comprehensively assess our customers,” including telecom usage, phone metadata, network data, and behavioral data points, according to Steiger.

“We are continually refining our credit scoring methodologies,” he added. “As new data becomes available or new variables emerge, we enhance our models. We routinely conduct A/B tests to evaluate new models and process improvements.”