The archive · Money & Fintech · Strategic decision · 2024–2026
Higala bets open payment rails can pull Philippines' 400 rural banks into InstaPay
Founded 2024 by Winston Damarillo, Higala's SynerFi connects rural banks to InstaPay; $4M seed closed, eight banks onboarded by late 2025.
Higala
What the business is
Higala provides real-time payment infrastructure for rural banks and microfinance institutions in the Philippines: it built the SynerFi rail to connect small and medium-sized banks to InstaPay, and offers core banking systems, license sponsorship, and fund management tools alongside it.
Starting capital：Co-founded and seed-invested in April 2024 by Talino Venture Studios and Chemonics International; in March 2025 the seed round expanded to $2.8M, and in December it closed at $4M.
How it started
Serial entrepreneur Winston Damarillo (his 14th company) partnered with Chemonics and launched Higala in Manila in April 2024, positioned as the Philippines' first 'inclusive instant payment system'; it uses the Mojaloop open-source payment framework, the first deployment of Mojaloop in Asia, and received public support from the central bank BSP.
What happened
In November 2024, it partnered with RCBC to let rural banks and microfinance institutions connect to InstaPay through SynerFi; in April 2025, DigFin reported that Higala would become the second operator of InstaPay (previously only BankNet), charging 75 centavos per transaction and a 1.5% merchant discount rate, only half that of card networks; in July 2025, the first 8 rural banks went live on SynerFi; in December 2025, the seed round expanded from a $2.8M target to close at $4M.
How it ended up
Still running: as of the end of 2025, 8 rural banks had connected to SynerFi, the seed round closed at $4M, and Damarillo said the model can be replicated across Southeast Asia; the next step is to obtain central bank approval to formally operate a second rail on InstaPay, with a long-term plan for an IPO.
Background
Higala targets a gap: only 18 of 400 rural banks connected to InstaPay by early 2024 due to high costs. In April 2024, Winston Damarillo launched Higala with Chemonics, deploying Mojaloop in Asia; BSP deputy governor supported it.
Higala builds rails, not wallets: SynerFi connects rural banks to InstaPay with zero capex, charges 75 centavos per transaction and 1.5% MDR, half of cards. It brings Pix/UPI logic, challenging GCash and PayMaya.
Progress: partnered with RCBC in Nov 2024; first 8 banks live in July 2025; seed round closed at $4M in Dec 2025. Ambition: replicate across Southeast Asia, target U.S. IPO.
What has to be true
- The gap is concrete and quantifiable: only 18 of 400 rural banks had connected to InstaPay; it is not that no one wants it, but that costs are too high.
- Borrow existing rails: rather than rebuilding a payment network, treat InstaPay as infrastructure and only fill the missing connection layer for small banks.
- Leverage price: zero capital expenditure plus fees lower than half those of card networks directly targets banks excluded by closed-loop wallets.
- Founder compounding: Damarillo's 14th company comes with resources, networks, and regulatory experience from Talino, PLDT, and Intel.
What can be applied
Avoid head-on competition with incumbents; serve excluded users. Higala leverages existing rails, fills gaps for small banks, and scales without direct battle.
Aftermath
As of 2026-09-01: Higala continues to operate SynerFi, with 8 rural banks on the network, and the $4M seed round closed in December 2025; Damarillo said the next step is to replicate the model in other Southeast Asian markets and continue advancing regulatory approval with BSP for a second rail on InstaPay. No shutdown or major pivot has been observed.
Sources
- Talino, Chemonics invest in startup Higala
- Damarillo's Higala building a 'Pix+Nubank' for Philippines
- Higala Raises $4M to Modernize Rural Bank Payments in Philippines
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