- Technology start-up Packworks has raised US$2M to expand its sari-sari stores platform
- Group wins support from logistics firm Fast Group, CVC as well as ADB Ventures, Arise, Techstarts and IdeaSpace Foundation
- Now helping 150,000 sari-sari stores, the group wants to grow its network to 500,000 by the end of 2023
A local technology start-up seeking to expand its sari-sari stores (neighbourhood variety store) platform has raised US$2 million (P112 million) in a seed funding round led by logistics firm Fast Group and global private equity group CVC Capital Partners.
Packworks, keen to link its fast-growing retailers’ network with relevant financial institutions and brands, did gain enthusiastic support from Fast, CVC as well as ADB Ventures, Arise, Techstarts and IdeaSpace Foundation.
“We bootstrapped our way to helping 150,000 sari-sari stores,” Packworks co-founder and chief marketing officer Ibba Bernardo was quoted as saying in an Inquirer report.
“We’re helping communities all over the Philippines to grow and become more resilient. Imagine how many more we can help with all these awesome partners.”
In a typical Asian country where densely populated villages are far from public markets and supermarkets, sari-sari stores are the convenient shops nearby where one can pick up any food item, grocery or other miscellaneous stuff in a jiffy.
The important role these grassroots stores play in the community was proven during the COVID-19 lockdowns that restricted the movement of people. Where travelling to the market was prohibited, sari-sari stores had the staple people needed.
Packworks saw usage of its app grow beyond the founders’ expectations when sari-sari store operators adopted the technology for better business.
“We have raised funds to help us expand our talent pool and boost our bandwidth to provide more to these store owners. We believe that our product offers and excellent upside,” the Inquirer quoted Bing Tan, Packwords co-founder and CEO, as saying.
Through Packworks’ The Pack:SuperStore app, the group also plans to create a department that will directly engage sari-sari stores and provide additional services with partners.
With the app, store owners can process their inventory, do bookkeeping and data collection in addition to availing themselves of financial products and ordering supplies at lower prices.
The app requires low bandwidth and light footprint to ensure accessibility even in remote areas. It also aims to bring down interest cost and boost access to e-payment channels, thus addressing poverty in the Philippines, the company said.
Packworks began in 2018 as a solution for multinational firms to link with neighborhood stores. From just five initial sari-sari store partners, it has grown its network to 150,000 and now targets to serve 220,000 stores by end-2022 and more than double that to 500,000 by end-2023.
