Hong Kong’s KPay Raises $55M to Drive Growth and Innovation in SME Financial Management

KPay Group, a financial management platform headquartered in Hong Kong, has raised $55 million in its Series A funding round, setting a new record for the largest investment in the global payments sector in 2024. The round was led by Apis Growth Markets Fund III and Apis Global Growth Fund III, both managed by Apis Partners LLP.

Founded by Davis Chan and his team, KPay emerged from a key insight gained while helping small and medium-sized businesses in Asia optimize their revenue and traffic. Recognizing the inefficiency in managing payments and finances, the founders sought to create a streamlined solution to address these challenges for their customers.

Apis Partners manages $2.3 billion in assets and has committed to supporting KPay’s aggressive expansion across Emerging Asia. This investment comes at a time when fintech funding in the Asia-Pacific region has hit a six-year low, highlighting the growing confidence in KPay’s proven growth strategy.

KPay intends to use the funds to further develop its product offerings and broaden its footprint in important Asian markets such as Thailand, Malaysia, the Philippines, and Indonesia. The company plans to achieve this through a combination of organic growth and strategic acquisitions. This partnership reflects the shared vision between KPay and Apis to support SME growth, a crucial driver of economic progress in the region, where SMEs contribute to more than 55% of total employment.

Since its inception just over three years ago, KPay has seen impressive growth, achieving a 166% revenue compound annual growth rate (CAGR). The company operates across Hong Kong, Singapore, and Japan, serving over 45,000 merchants. KPay provides a comprehensive solution to meet businesses’ financial and operational needs, enabling them to better manage payments, payroll, bill settlements, and local and international remittances on a unified platform.

The company’s open-architecture ecosystem supports partnerships with more than 150 SaaS providers, banks, and financial services firms. KPay plans to double this number in the coming years to strengthen its offerings further and support more businesses in their digital and financial transformation. In addition, KPay is exploring the integration of AI to enhance merchant experiences, improve operational efficiency, and drive revenue growth.

Christopher Yu, President and CFO of KPay, emphasized that securing this funding provides the company with the financial flexibility needed to accelerate product innovation, enhance market expansion, improve customer experience, and achieve operational excellence. He highlighted that the capital will play a crucial role in supporting KPay’s ongoing growth trajectory and ability to scale across the region.

Matteo Stefanel, Co-Founder and Managing Partner at Apis Partners, expressed excitement about the partnership, noting that Apis is one of the most active global investors in fintech growth-stage companies.