London and Dubai-based fintech startup Elevate recently announced raising $5 million in financing to expand its operations to the Philippines. The funding will simplify the process for freelancers in the Philippines to receive payments in US dollars, with Elevate supporting free deposits from US and international employers and popular platforms like Upwork, Fiverr, PayPal, Deel, and Toptal.
Previously, Elevate raised a total of $10 million in equity and debt from investors, including Y Combinator, Goodwater, Global Founders Capital, and VSQ.
Launched in early 2024, Elevate has over 150,000 users globally, with its services popular among freelancers and remote workers. Elevate boasts competitive foreign exchange (FX) rates made possible by its partnerships with multiple large global FX providers integrated with banks in the Philippines.
According to a 2022 report by GCash and Payoneer, 1.5 million Filipinos are now registered on international online platforms offering freelancing services. The report also points out that freelancers who serve both local and international clients also earn 57% more per hour than those who work exclusively with local clients.
“We are thrilled to bring our innovative financial solutions to the Philippines, a market with a burgeoning freelance community,” said Elevate’s CEO Khalid Keenan. “Our goal is to empower freelancers by providing them with secure, efficient services and the best USD-peso FX rates that address their unique needs.”
A key differentiator for Elevate is its partnership with Bangor Savings Bank, a 172-year-old institution in Maine with over $7 billion in assets. Unlike other electronic money accounts like Wise and Payoneer, Elevate accounts are FDIC-insured through Bangor Savings Bank, protecting funds up to $250,000. This partnership makes Elevate the only service enabling individuals in countries like the Philippines, Pakistan, and Bangladesh to open FDIC-insured U.S. bank accounts.
“The introduction of FDIC-insured accounts through our sponsor bank, Bangor Savings Bank, is set to revolutionize the financial landscape for Filipino freelancers, offering them unprecedented security and convenience in managing their international earnings,” Keenan added.
In addition to facilitating transfers, Elevate offers a Mastercard debit card that users can utilize for online spending.
Looking ahead, Elevate plans to expand its customer support, content, and compliance teams in the Philippines in Q3/Q4 of 2024. The company also expects significant demand from tech-savvy, educated workforces in Indonesia, Malaysia, Vietnam, and Thailand as remote work continues to create new opportunities across Southeast Asia.