As we continue to see global travel recover as well as the continuous rise of e-commerce post-pandemic, Singapore and broadly Southeast Asia have witnessed substantial growth in multicurrency spending over the past two years.
YouTrip, a Singapore-based fintech specializing in multi-currency mobile wallets, is capitalizing on this trend by securing $50 million in a Series B funding round led by Lightspeed Venture Partners, to accelerate its expansion efforts across Southeast Asia.
The funding round comes after YouTrip's $30 million Series A in December 2021, bringing the company's total funding to over $100 million.
YouTrip, which was established in 2018, offers a user-friendly digital platform to simplify and enhance foreign currency transactions for travellers and digital-savvy consumers, all with competitive foreign exchange rates and zero transaction fees. It also provides corporate cards for SMEs through its spend management platform, YouBiz.
Possessing a remittance license issued by the Monetary Authority of Singapore (MAS), YouTrip has processed nearly $10 billion in annualized transaction volume, marking an impressive 238% growth in e-commerce payment volume in since 2021.
With its latest investment, YouTrip is strategically positioned to accelerate its expansion throughout Southeast Asia, targeting markets like Indonesia, Vietnam, the Philippines, and Malaysia. This includes the recruitment of over 100 new team members for its regional expansion.
The fresh funding will also be allocated towards the enhancement of YouTrip's product technology such as broadening its product offerings, with personal and commercial customers gaining access to additional foreign exchange options and more remittance destinations.
While YouTrip's $50 million funding round is certainly impressive and capable of giving it an edge over competitors, it's true that the company will still face stiff competition from established players like MoneyGram, WorldRemit, Skrill, and Telcoin.
These companies have large customer bases and significant resources, so YouTrip will need to offer something unique and compelling to succeed.
Additional reporting by Muhammed Adamu