Growsari Secures New Funding from Temasek & Tencent

GrowSari Secures $30 Million to Digitize Philippine Sari-Sari Stores

Sari-sari stores, ubiquitous neighborhood retail outlets in the Philippines, function as vital sources for everyday goods and often serve as important community centers. GrowSari, a company focused on the digital transformation of these stores through tools for pricing, inventory control, and working capital loans, has recently announced a Series B funding round, bringing its total raised capital to $30 million.

Series B Funding Details

The company’s Series B funding is currently in a rolling close, with the final amount yet to be disclosed. The overall $30 million includes previously secured seed funding and Series A investments, which totaled $14 million according to reports.

Notable investors participating in the Series B round include Pavilion Capital (Temasek Holdings’ private equity arm), Tencent, the International Finance Corporation (IFC), ICCP SBI Venture Partners, Saison Capital, and returning investors such as Robinsons Retail Holdings (part of the Gokongwei Group), JG Digital Equity Ventures, and Wavemaker Partners.

Growth and Expansion

Established in 2016, GrowSari’s B2B platform is presently utilized by over 50,000 stores spanning more than 100 municipalities across Luzon, the largest and most densely populated island in the Philippines. The company’s long-term objective is to provide services to a total of one million sari-sari stores nationwide.

The Significance of Sari-Sari Stores

With over 1.1 million sari-sari stores operating throughout the Philippines, they represent a crucial distribution network, accounting for 60% of all fast-moving consumer goods (FMCG) sales within the country.

GrowSari offers store operators improved pricing on products from approximately 1,000 FMCG brands, including major companies like Unilever, P&G, and Nestle. This access to better pricing is projected to potentially double store earnings.

The platform also integrates additional services, such as online bill payments for telecommunications and utilities, remittance options, and access to microfinancing for working capital loans.

Founding Team and Initial Focus

The founding team of GrowSari comprises Reymund Rollan, Shiv Choudhury, Siddhartha Kongara, and Andrzej Ogonowski. They initially developed the platform as a back-end system designed to streamline logistics and inventory management for sari-sari stores.

Traditionally, individually-owned sari-sari stores operate with lower profit margins compared to larger retailers who benefit from negotiated deals with FMCG wholesalers.

GrowSari’s supplier marketplace addresses this disparity by providing access to Distributor List Prices typically reserved for larger businesses and wholesalers.

Flexible Payment Options

The marketplace operates without minimum order requirements. Stores can choose to pay via cash on delivery, GrowCoins (cash credits replenishable through GrowSari’s shippers, online transfers, banks, or convenience stores), or E-Lista, GrowSari’s seven-day loan product.

Future Plans

The newly acquired capital will be allocated to expanding the user base by 300,000 stores, particularly in the Visayas and Mindanao regions.

GrowSari also intends to broaden its supplier marketplace and introduce additional financial products tailored to the needs of sari-sari store owners. The company is positioned within a growing trend of B2B platforms in Asia that cater to micro and small-enterprises, alongside companies like BukuWarung and BukuKas in Indonesia, and Khatabook in India.