KKR injects $45 million into Mla-based fintech for MSMEs

MANILA, Philippines — Global investment firm KKR is injecting $45 million in fresh funding into Manila-based fintech GrowSari to support its expansion in the Visayas and Mindanao.

The local technology platform for micro, small and medium enterprises (MSMEs) including sari-sari stores, inked definitive agreements with KKR as part of its Series C funding round to bankroll its nationwide expansion.

GrowSari CEO and co-founder Reymund Rollan said the startup is accelerating its presence in more municipalities and cities in the Philippines.

“Our investments will be focused towards expanding in Visayas and Mindanao this 2022,”.Rollan said.

Currently, GrowSari is present in 220 municipalities across the regions of Luzon.

GrowSari, which started in 2016, is helping small retailers including sari-sari stores, carinderias, and pharmacies by providing access to a wider range of products and value-adding services.

Stores nationwide are able to expand their offerings through GrowSari’s services including bill payments, telco reloads, and wallet top-ups, as well as procurement services for common retail goods and pharmaceutical medicines.

Apart from expanding to other areas, GrowSari is augmenting its ability to provide sari-sari stores access to credit and basic financial services.

“The industry, operational and financial expertise and network of KKR will be a great complement to the passion, dedication and strong culture of excellence that GrowSari has built over the years,” Rollan added.

GrowSari grew its gross merchandise value by 6.5 times and its revenues by 2.5 times since 2019 on the back of growing digital adoption, proximity shopping, as well as the country’s economic growth.

Ashish Shastry, co-head of Asia Pacific Private Equity and head of Southeast Asia at KKR, said the capital infusion aims to support GrowSari’s presence nationwide.

“We are pleased to invest in GrowSari, an innovative company with tremendous potential to digitally transform the operations of Filipino MSMEs, who are crucial contributors to the country’s economy and a pillar of the business community. We are excited to support the GrowSari team to achieve their expansion ambitions,” Shastry said.

GrowSari’s Series C funding round was oversubscribed and its final composition is currently being finalized.

Prior to KKR’s investment, GrowSari raised funding from investors including Temasek-affiliated Pavilion Capital, Tencent, the International Finance Corp., Gokongwei-led JG Summit, Robinsons Retail Holdings Inc., Wavemaker Partners, Saison Capital, and the Investment & Capital Corporation of the Philippines.