Spenmo Financial Technology Corporation, a Singapore-based payments software startup, is reportedly shutting down its services in the Philippines, barely 17 months after it secured a payments license in the country.
The move, which was first reported by DealStreetAsia, baffled many local users, who said they did not see signs of the shutdown until Spenmo sent an email to its subscribers.
In the email dated September 29, 2023, Spenmo informed its subscribers that the company “has decided to terminate the services offered to all clients and will close all accounts related thereto”.
The termination and the corresponding account closures shall take effect 14 calendar days from date, or on October 13, 2023. The company did not provide the reason for the termination of its services.
“You are also given the same fourteen (14) calendar days from date to either totally utilize all remaining amounts reflected in your respective dashboards through Cash Reimbursement or Bills Payment feature; or request for refund,” the company said in the email.
A Spenmo user has confirmed to The Independent Investor (TII) that he received the email. TII has reached out to Spenmo for confirmation.
Spenmo received a license to operate in the Philippines in April last year, allowing it to offer its bill payments and employee spending management software locally. It entered the Philippine market in late 2021.
The startup last raised $85.35 million in its Series B funding round in January 2022. The round was led by global tech investor Tiger Global and backed by Insight Partners, Alpha JWC Ventures, Salesforce Ventures, Rocket Internet, and Addition.
Spenmo also operates in Singapore, its home base, and Indonesia. According to sources, the company has more than 15,000 customers in the Philippines, mostly business owners who used the platform for cash disbursements.
In the Philippines, the total transaction value in the digital payments market is projected to reach $32.8 billion this year and is expected to hit $56.2 billion by 2027, according to data and research provider Statista.
A McKinsey & Company report in June showed that 44% of the country’s bankable population – those aged 15 and older – is considered unbanked.