Singapore based alternative payments startup Coda Payments has raised $2m in new funding from previous investors GMO Global Payment Fund, Skype co-founder Toivo Annus and Golden Gate Ventures. Coda operates Codapay, an alternative payment gateway serving Indonesia, Philippines, Malaysia, Thailand, Singapore, Vietnam, and Taiwan.
Relying on credit cards doesn’t work in Southeast Asia, where less than 10 percent of the 600 million population are estimated to own plastic. That makes alternative payments, like bank transfer or over-the-counter, critical for anyone doing business in the region, where online spending is tipped to race to $200 million in the next 10 years. The Singapore-based startup last raised a $2.3 million Series A back in December 2013, and it isn’t calling this round its Series B. Neil Davidson, co-founder and CEO of the company, said that it simply raised a sum deemed necessary for progress and then will go from there. “We’re relatively capital efficient,” he explained in an interview with TechCrunch. “That lets us take the money we need to build to the next level, which for us means profitability, and then see where we at.”