KPay, a financial technology startup, has secured $55 million in Series A funding led by London-based investment firm Apis Partners. The fresh capital will be utilized to accelerate product development, enhance go-to-market speed, and expand into new Asian markets.

The company, founded by Davis Chan and his co-founders, initially focused on helping small and medium-sized merchants optimize their revenue and traffic in Asia. However, they soon realized that traditional financial solutions for merchants and SMBs were inefficient, resulting in higher costs and a lack of actionable business insights. This insight led them to create KPay, a one-stop financial management platform designed to cater to the modern needs of business agility, integration, and data-informed decision-making.

Since its inception three years ago, KPay has seen significant traction, serving 45,000 merchants in Hong Kong, Singapore, and Japan, and partnering with over 150 SaaS providers, banks, and financial service firms. The company aims to increase its partnerships to serve more businesses in Asia, with a goal of enabling 1 million merchants within the next five years.

According to Christopher Yu, CFO of KPay, the Series A funding will also be used to improve customer experience through organic growth and support inorganic growth strategies such as strategic mergers and acquisitions. Additionally, the startup is exploring how artificial intelligence can improve the merchant experience, increase operational efficiency, and boost revenues.

While Yu did not provide specific details about KPay's revenue and profitability, he revealed that the company's revenue has achieved a compound annual growth rate of 166% since its inception. This impressive growth rate is a testament to the demand for KPay's services, which offer greater flexibility, speed, and security to merchants.

KPay's platform supports payroll, bill settlement, and both local and global remittance, making it a unified financial management platform for merchants and SMBs. The company's focus on innovation and customer experience has resonated with investors, who see the potential for KPay to create an inclusive digital economy where neighborhood businesses have the same opportunities as major brands.

With a staff of around 440 people across its bases in Hong Kong and Singapore, KPay is well-positioned to continue its growth trajectory and make a significant impact on the financial management landscape in Asia.

The Series A funding is a significant milestone for KPay, and it will be interesting to see how the company utilizes this capital to drive innovation and expansion in the region. As the fintech landscape continues to evolve, KPay's focus on serving the underserved merchant community could lead to a significant shift in the way businesses manage their finances.