Y-combinator-backed fintech startup Elevate gets $5 million to expand operations

Elevatea Y-combinator-backed fintech startup based in London and Dubai, has successfully raised $5 million in funding to expand its operations in the Philippines.

Since 2021, they have raised a total of $10 million in equity and debt from investors, including Y Combinator, Goodwater, Global Founders Capital and VSQ, Elevate said in a statement Monday.

Looking ahead, Elevate plans to expand its customer service, content and compliance teams in the Philippines in Q3/Q4 2024.

The company also anticipates significant demand from other educated and tech-savvy workforces in Indonesia, Malaysia, Vietnam and Thailand, as remote working continues to provide new opportunities across Southeast Asia.

The company also launched FDIC-insured United States Dollar (USD) accounts for Filipino freelancers.

Its product launch in the Philippines aims to address the financial challenges faced by Filipino freelancers.

The innovative platform is designed to simplify the process for freelancers in the Philippines to receive payments in USD.

It supports free and fast deposits from US and international employers and popular platforms like Upwork, Fiverr, PayPal, Deel, and Toptal.

For those transferring assets from USD accounts to banks based in the Philippines, the platform offers the most competitive foreign exchange (FX) rates in the market.

Partnering with several large global FX providers integrated with banks in the Philippines, the platform ensures access to the best rates available, making it a cost-effective solution for maximizing your earnings.

In addition to facilitating USD transfers, Elevate offers a Mastercard debit card that users can use for online spending.

“We are excited to bring our innovative financial solutions to the Philippines, a market with a thriving freelance community,” said Khalid Keenan, CEO of Elevate.

“Our goal is to empower freelancers by providing them with safe, efficient services and the best USD-peso FX rates that meet their specific needs.”

A key differentiator for Elevate is the partnership with the sponsoring bank, Bangor Savings Bank, a 172-year-old institution founded in Maine, USA, with more than $7 billion in assets.

Unlike other e-money accounts like Wise and Payoneer, Elevate accounts are FDIC insured through Bangor Savings Bank, providing users with the security of knowing their funds are protected up to $250,000 in the event of a bank failure.

This partnership makes Elevate the only service that allows 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 of Filipino freelancers, offering them unprecedented security and convenience in managing their international earnings,” Keenan added .

Since its launch in early 2024, Elevate has already attracted over 150,000 users globally, highlighting the strong demand for its services among freelancers and remote workers.

With 1.5 million Filipinos registered on international online freelance platforms and another 1.3 million working in BPO, mostly for US companies, the Philippines is a hotspot for remote work.

Notably, in 2023, the Philippines surpassed India, the United States, Brazil and other countries to become the leading country for workers on Deel, a popular remote working platform.

The Asia-Pacific region, including the Philippines, has been the fastest-growing area for remote work, along with Europe, the Middle East and Africa (EMEA).

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