Elevate, a fintech startup supported by Y Combinator, has raised $5 million in its latest funding round. The company, headquartered in London and Dubai, will use this capital to expand its services in the Philippines, a move that may significantly impact the country’s growing freelance community.
Since its inception in 2021, Elevate has garnered $10 million in equity and debt financing from investors such as Y Combinator, Goodwater, Global Founders Capital, and VSQ.
“Our goal is to empower freelancers with secure and efficient services, offering the best USD-peso FX rates tailored to their unique needs,” said Khalid Keenan, CEO of Elevate.
Elevate’s platform simplifies the process for Filipino freelancers to receive US dollar payments efficiently. It supports rapid and free deposits from US and international employers, as well as major freelancing platforms including Upwork, Fiverr, PayPal, Deel, and Toptal. For those transferring funds to Philippine-based banks, Elevate offers some of the most competitive foreign exchange (FX) rates in the market. This is achieved through strategic partnerships with major global FX providers, which integrate with local banks to ensure users get the best rates available, optimizing their earnings.
In addition to USD transfer facilitation, Elevate provides a Mastercard debit card, enabling users to make online purchases seamlessly.
FDIC-insured accounts
Elevate also partnered with Bangor Savings Bank, a long-standing institution in Maine, USA, with over $7 billion in assets. Through this partnership, Elevate offers FDIC-insured accounts, which safeguard users’ funds up to $250,000 against bank failure. This assurance allows individuals in the Philippines, Pakistan, and Bangladesh to open FDIC-insured US 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.
Since the launch of FDIC-insured accounts in early 2024, Elevate has already attracted over 150,000 users globally, demonstrating the significant demand for its services among freelancers and remote workers.
Freelancing
The Philippines, home to 1.5 million individuals registered on international freelancing platforms and another 1.3 million in business process outsourcing (BPO) roles, mostly for US companies, is a key market for Elevate. In 2023, the country surpassed India, the US, and Brazil to become the leading nation for workers on Deel, a popular remote work platform. The Asia-Pacific region, especially the Philippines, continues to be a fast-growing hub for remote work.
Elevate plans to bolster its customer support, content, and compliance teams in the Philippines by late 2024. The company also anticipates expanding into other Southeast Asian markets, including Indonesia, Malaysia, Vietnam, and Thailand, where the demand for remote work solutions is expected to grow significantly.
This latest funding round underscores the confidence investors have in Elevate’s potential to transform the financial services landscape for freelancers in Southeast Asia and beyond.
Source: Elevate offers competitive USD transfer services for freelancers – Back End News
