Higala, a Philippine inclusive banking infrastructure startup, has closed its seed round at $4 million to accelerate the digital transformation of rural banks and microfinance institutions. The company focuses on regions where access to formal financial services remains limited and costly. This latest raise positions Higala to scale technology that helps smaller institutions compete in a rapidly modernizing payments landscape.
Funding round and investor backing
The seed round was backed by Talino Venture Studios, Chemonics International, Kadan Capital, TENCO Capital, and 1982 Ventures. It follows a seed extension completed in March, which was led by 1982 Ventures and signaled early confidence in Higala’s model. According to Higala Chairman and Chemonics President and CEO Jamey Butcher, investor interest was strong enough for the company to increase the round from an initial US$2.8 million target to $4 million.
Driving digital transformation for rural banks
Higala is registered as an operator of a payment system and focuses on lowering the cost of real-time payments for smaller financial institutions. By helping banks price instant transfers more efficiently, the startup aims to enable rural lenders to offer digital services that are competitive with larger players. Founder and CEO Winston Damarillo described the fundraise as a pivotal step that will support both institutional growth and improved access to financial tools for customers in underserved communities.
SynerFi’s role in expanding real-time payments
A significant share of the new capital will go into strengthening SynerFi, Higala’s open payments platform. SynerFi is designed to cut entry barriers for smaller institutions that want to join InstaPay, the Philippines’ real-time payments network, and to broaden acceptance of digital payments among merchants. By connecting more banks to InstaPay through SynerFi, Higala aims to accelerate financial inclusion and support the wider adoption of cashless transactions across provincial and rural markets.
Expanding network of rural banking partners
Several rural banks have already been onboarded to SynerFi, including Rural Bank of San Antonio, Rural Bank of Lipa City in Batangas, Progressive Rural Bank, Banco Abucay, Rural Bank of Hermosa in Bataan, Money Mall Rural Bank, First Philippine Partners Bank, and Lagawe Highlands Rural Bank. These partnerships demonstrate how the platform can integrate a diverse set of community lenders into the digital payments infrastructure. As more institutions join, Higala expects network effects to improve customer options and lower the cost of digital transactions in areas that have traditionally lagged behind major cities.
Strategic partners and leadership perspectives
SynerFi is commercially deployed with Rizal Commercial Banking Corporation through the initiative SynerFi by RCBC powered by Higala. RCBC Executive Vice President and Chief Innovation and Inclusion Officer Lito Villanueva has framed the collaboration as a commitment to extend digital finance beyond urban centers, while supporting broader national goals around sustainability and inclusion. Chemonics, which has worked in the Philippines for nearly four decades and operates in more than 160 countries, views Higala’s platform as part of a broader global shift toward technology that serves underbanked populations.
With its $4 million seed round complete, Higala is positioned to deepen its role in the modernization of rural banking and microfinance across the Philippines. The company’s combination of regulatory status, inclusive payments infrastructure, and strategic partnerships provides a foundation for scaling digital access in underserved communities. As SynerFi brings more institutions onto InstaPay and into the wider digital ecosystem, Higala aims to help redefine how everyday customers in remote areas interact with financial services.