e-commerce payment Omise

Thailand-based online payment gateway company Omise.co has announced that it has raised “a new expansion round of financing” from Golden Gate Ventures.

While the size of the funding has not been disclosed, Golden Gate’s Managing Partner Vinnie Lauria told e27 that “it’s in the seven digits and our second-largest investment to date by check size”.

The capital will be used for expansion as well as to hire new talent to facilitate growth. Currently, Omise is running a closed beta test in Japan and Indonesia.

The firm plans to expand to Singapore, Malaysia, the Philippines and Hong Kong by mid-2016.

Omise previously raised US$2.6 million in May this year.

Founded in June 2013, Omise is an online payment company that facilitates e-commerce sites with a “plug-and-play interface built for software developers” to quickly accept credit card payments.

The firm claims to have 2,000 customers that include TRUE, the largest cable TV and Internet provider in Thailand.

Omise had initially hoped to become a traditional e-commerce platform but, because of the difficulties it faced with the payment platform, it decided to pivot towards that pain point.

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“We are optimistic about the e-commerce market in Thailand and the Asia Pacific region. In 2013, Thailand’s e-commerce market was worth approximately US$900 million, and according to research, it is expected to reach US$15 billion within the next four years,” said Omise CEO and Founder Jun Hasegawa.

A major reason Golden Gate Ventures cites for the investment is the growth trends of Omise. Between Q1 and Q2 2015, the payment gateway startup grew by 56 per cent and saw an impressive 269 per cent growth in Q3.

“Our investment thesis is that in order to create a massive success in Southeast Asia, companies need to expand beyond their home country to reach the half billion people that are coming online and rapidly adopting mobile internet and e-commerce. Expanding out from your home country is what separates the winners from the losers in this region,” said Lauria in an official statement.

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Omise is working in a fast-growing industry with multiple players across the region. Ayannah, a Philippine company, claims more than 10 million customers. Singapore’s fastacash said today its XOPO service is the first to allow international payments via social media platforms such as Facebook. And, of course, Paypal’s Braintree is a global player in the e-commerce payment space.

Golden Gate’s portfolio has raised US$150 million since 2011 and includes 25 companies across seven countries in Asia.

We’ll be connecting the Mekong region through Bangkok, Thailand come November 26 – 27. Join us in two action-packed days where tech heavyweights from across the region discuss ecosystem hot topics. Learn more about Echelon Thailand 2015 here.

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