E-commerce start-up GrowSari has raised a total funding amount of $110 million for the digital transformation of micro, small and medium enterprises (MSMEs) in the Philippines, the International Finance Corp. (IFC) said.
IFC said in a statement yesterday it has partnered with GrowSari for the latest funding activity, while other investors include KKR and Pavilion Capital of the Temasek Group.
The latest Series C round was able to raise $77.5 million, bringing the total funding to around $110 million, the largest amount ever in the business-to-business (B2B) and MSME space in the Philippines as well as in the region, the IFC said.
“Not only will this funding allow us to fuel our growth, but this will also help us bring top global quality talent in operations, technology, and data science into the startup ecosystem of the Philippines,” said Reymund Rollan, GrowSari chief executive officer and co-founder.
“We have deepened our partnership with those who can support this next phase of growth, on core as well as financial services. We remain open to partnering with all other local and international companies as we transform this MSME space,” he added.
Founded in 2016, GrowSari is a tech-enabled B2B platform that supports small physical retail stores in the Philippines with tools to manage and grow their business.
Currently, GrowSari offers services including telco loading and bills payment for local stores, while equipping MSMEs with credit to ease working capital constraints.
“Our investment will enable GrowSari to expand digital adoption and financial services for MSMEs, which is critical to keep them competitive, and for a resilient and inclusive recovery,” said Stephanie von Friedeburg, IFC senior vice president for operations, said.
GrowSari plans to leverage funding to accelerate its national expansion. From a base of 1,000 sari-sari stores in three cities back in 2018, GrowSari has grown to service more than 100,000 stores in over 220 municipalities across Luzon.
“We have already launched in the Visayas, with Iloilo as the first city, and we will launch in Mindanao soon. We also have the largest B2B fulfillment network and will have 50-plus fulfillment centers nationwide,” said Siddhartha Kongara, co-founder and chief technology officer.
“We have more than 10 traditional companies that are leveraging the platforms to improve their business operations,” Kongara added.
IFC is also helping GrowSari develop an accurate credit scoring model, which will accelerate access to credit for stores, spur financial inclusion and promote gender parity as more than 75 percent of its stores are female owned. – Angela Celis
