The Philippines’ local fintech firm SquidPay Technology has raked in PHP100m ($2.08m) in a Series A funding round to support its expansion plans.

SquidPay also secured another $2.08m line of credit, in addition to the funding round.

The funding round and the line of credit was arranged by Eastern Securities Development Corporation (ESDC).

This marks the first round of funding for SquidPay, which brings its valuation to PHP1.1bn ($22.9m).

SquidPay will use the fresh investment to expand its reach and accessibility by setting up kiosks and business centres in key areas across the Philippines by next year.

Launched in May this year, the fintech startup offers contactless payments to commuters, merchants, transport companies, and local government units (LGUs).

The free payment platform provides instant electronic payments and collections via stored value cards, QR codes, and mobile apps.

It provides users with a SquidCard to commute, shop, and enjoy local dining.

It also provides expense monitoring, and contract tracing capabilities to both private and public sectors.

SquidPay Technology CEO Marvin Cruz said: “This news surprised us too. We did not expect any funding to come until the late first quarter of next year.

“This gives us confidence that there are people who strongly believe in what SquidPay can achieve.”

SquidPay has been working with City of Baguio since November 2020, and it anticipates to onboard 35% of its population as its registered users.

By the year-end, the company aims to tap as many as 50% of Baguio residents.