Plentina Raises $2.2M Seed Round

Plentina Secures $2.2 Million Seed Funding to Expand BNPL in the Philippines

The Philippines is witnessing a surge in the adoption of e-wallets, surpassing the usage of credit cards, which currently have a penetration rate of under 10%. Fintech company Plentina is capitalizing on this shift by providing buy now, pay later (BNPL) installment loans accessible and manageable through these popular e-wallets.

Seed Round Details

Plentina recently announced the successful completion of a $2.2 million seed funding round. This round was co-led by Andrew Vigneault, previously an executive at Tableau and currently CEO of ClearGraph, alongside Unpopular Ventures and DV Collective.

Additional investors participating in this round included JG Digital Equity Ventures (JGDEV), Amino Capital, Canaan Partners Scout Fund, and Ignite Impact Fund.

Previous Funding and Accelerator Programs

Prior to this, Plentina secured a $750,000 pre-seed round last year. Investors in that round included Techstars, Emergent Ventures, and the 500 Startups Vietnam Fund.

The company has also actively participated in prestigious accelerator programs, including Techstars Western Union and Stanford’s StartX.

Growth and Partnerships

Launched in the Philippines in October 2020, Plentina’s application has been downloaded over 30,000 times. Key merchant partnerships have been established with 7-Eleven Philippines and Smart Communications, a telecommunications provider serving more than 70 million prepaid subscribers.

The newly acquired seed funding will be strategically allocated to expand Plentina’s network of merchant partners within the Philippines. Future plans include extending operations throughout Southeast Asia and into other regions.

Leveraging Data Science for Credit Assessment

Plentina employs machine learning models to evaluate the creditworthiness of loan applicants. This approach is rooted in the data science expertise of co-founders Kevin Gabayan and Earl Valencia.

Gabayan previously held the position of data science lead at Bump Technologies and subsequently spent five years at Google following its acquisition of the startup. Valencia brings experience as a managing director of digital transformation at Charles Schwab.

Addressing Challenges in Emerging Markets

“We are focused on making BNPL viable in emerging markets where traditional credit scores are scarce and merchants often lack the infrastructure for seamless technology integration,” explained Valencia, Plentina’s chief business officer, in a statement to TechCrunch.

Beyond alternative credit scoring, the startup prioritizes compatibility with merchants’ existing operational systems.

Building Credit Profiles

To date, Plentina has generated 10 million credit scores utilizing alternative data sources. These sources include mobile data, obtained with explicit user consent, and data from retail loyalty programs. The company intends to refine these models as its partnerships and customer base continue to grow.

Customers who demonstrate responsible credit behavior through Plentina are eligible for increased credit limits and access to exclusive offers.

Loan Terms and Availability

Plentina’s loans are subject to a flat 5% service fee, with no additional interest charges. Both 7-Eleven and Smart Communications currently offer 14-day loan terms. Valencia indicated that more flexible loan durations will be introduced in the future.

These loans can be utilized for purchases at all 3,000 7-Eleven stores across the Philippines and for the purchase of prepaid mobile airtime from Smart Communications.

Competitive Landscape

The Philippine market features other installment loan services, including BillEase, Tendopay, and Cashalo. Plentina differentiates itself by aiming to become a comprehensive financial services partner for its customers.

“Our goal is to support customers throughout their financial journey. We begin by providing closed-loop store credit for essential purchases, enabling consumers to establish a financial identity. As their financial health improves, we can offer them access to a wider range of financial services,” Valencia stated.

Investor Confidence

Andrew Vigneault, commenting on his investment, noted, “Throughout my experience with numerous early-stage fintech companies, I have rarely encountered founders as capable as Kevin and Earl. Their ability to achieve significant success with customers, partners, and product development at this early stage is truly remarkable.”