Plentina Raises $2.2M to Expand 'Buy Now, Pay Later' in Emerging Markets

Plentina Secures $2.2 Million Funding to Expand BNPL Services

Philippines-based Plentina, a buy now, pay later (BNPL) startup concentrating on developing markets, has recently announced a successful funding round of $2.2 million. This investment increases the total funding received by the fintech company since its establishment in 2019 to $5.7 million, including a previously announced seed round in April.

The latest investment round was spearheaded by TMV, with significant participation from Global Founders Capital and returning investors such as AV Ventures, Techstars, and Unpopular Ventures.

Strategic Use of Funds and Future Plans

The newly acquired capital will primarily be allocated to accelerate Plentina’s growth within the Philippines. Furthermore, the company intends to broaden its product offerings and initiate explorations for potential launches in other countries, with Vietnam being a key target.

A Series A funding round is anticipated in the coming year, and the company plans to onboard experienced senior personnel prior to this event.

Leveraging Data Science Expertise

Beyond its core BNPL platform, Plentina is also prioritizing the development of other data-driven financial services. This strategic direction is driven by the backgrounds of its co-founders, Kevin Gabayan and Earl Valencia, both accomplished data scientists with prior experience at companies like Google and Charles Schwab.

The founders highlight that despite the Philippines having a population exceeding 100 million, access to credit cards remains limited to less than 5% of the population.

Significant User Growth and Platform Expansion

Plentina has experienced substantial growth in user acquisition. In 2021 alone, downloads of the company’s Android application increased by 500%, expanding the user base from 30,000 to over 150,000.

The company is preparing to launch an iOS application in the early stages of next year.

Partnerships and Merchant Network

Upon its initial launch in the Philippines last October, Plentina initially focused on providing BNPL options for everyday necessities, establishing partnerships with retailers such as 7-Eleven and the telecom provider Smart Communications.

Since then, the platform has expanded to include over 20 brands and a wider range of product categories.

These categories now encompass essential items like food, groceries, and educational supplies, as well as more discretionary purchases such as airline tickets, gaming products, and general e-commerce items.

Plentina’s merchant network includes both e-commerce platforms and brick-and-mortar retailers, including Isetann Supermarket, Lazada, Zalora, Shopee, Agoda, McDonald’s, Philippine Airlines, Razer E-Pins, and National Bookstores.

Currently, the company reports a waitlist of over 20 brands eager to integrate with its platform.

Extended Loan Terms

Plentina has adjusted its loan terms to offer greater flexibility. Previously, repayment was required within 14 days, as reported by TechCrunch in April.

Now, the company provides BNPL options extending up to three months, accommodating larger-value purchases like airline tickets and e-commerce transactions.

International Expansion to Vietnam

The company is preparing to initiate its international expansion efforts in the coming year.

“Guided by our commitment to democratizing financial services in emerging markets, we are planning to expand into Vietnam in 2022,” stated Valencia to TechCrunch. “We will leverage the insights gained from launching and scaling our operations in the Philippines.”

Plentina has already assembled a leadership team in Vietnam to facilitate the launch of operations.

Investor Confidence

Soraya Darabi, founder and general partner at TMV, expressed strong confidence in the company’s leadership and vision. “Kevin and Earl embody the qualities we seek in entrepreneurs – a focused approach to a significant opportunity and the determination to achieve success,” she stated.

“We are excited to partner with them in bringing robust financial services to the Philippines and beyond.”

Source: https://techcrunch.com/2021/09/10/buy-now-pay-later-boom-bnpl/