MANILA, Philippines–(BUSINESS WIRE)–KKR, a number one international funding agency, and GrowSari (the “Firm”), a B2B e-commerce platform serving micro, small and medium-sized enterprises (“MSMEs”) within the Philippines, right now introduced the signing of definitive agreements beneath which KKR will make investments US$45 million to guide GrowSari’s Collection C funding spherical. KKR’s funding in GrowSari will assist the Firm’s enlargement into extra areas throughout the Philippines and strengthen its monetary providers capabilities.
Based in 2016, GrowSari is a number one tech-enabled B2B platform that helps the Philippines’ small bodily retail shops, together with neighborhood retail outlets (sari-sari shops), roadside and market outlets (carinderia), and pharmacies, improve their service ranges and entry a wider vary of merchandise and value-adding providers. This permits the shops to offer native communities with extra complete choices, together with digital providers.
At the moment, GrowSari is current in 220 municipalities throughout the areas of Luzon and provides over 100 sorts of completely different providers together with making invoice funds, telco reloads, and pockets top-ups, in addition to procurement providers for widespread retail items and pharmaceutical medicines. Robust tailwinds round digital adoption, proximity procuring, and financial progress within the Philippines have additionally contributed to a 6.5x improve in gross merchandise worth for GrowSari since 2019 and a 2.5x improve in income over the identical interval. In 2021, the Singapore Enterprise Capital & Non-public Fairness Affiliation named GrowSari as ‘Enterprise Capital Deal of the 12 months.’
Ashish Shastry, Co-Head of Asia Pacific Non-public Fairness and Head of Southeast Asia at KKR, stated, “We’re happy to spend money on GrowSari, an revolutionary firm with large potential to digitally remodel the operations of Filipino MSMEs, who’re essential contributors to the nation’s economic system and a pillar of the enterprise neighborhood. We’re excited to assist the GrowSari staff to realize their enlargement ambitions.”
Talking on the newest funding, Reymund ‘ER’ Rollan, CEO and Co-Founding father of GrowSari, stated, “We will likely be accelerating our presence nationally to extra municipalities and cities within the Philippines. Our investments will likely be targeted in direction of increasing in Visayas and Mindanao this 2022. This can convey us a step nearer to our mission of making a optimistic socio-economic affect to the lives of extra MSME homeowners and the communities they serve. As well as, we’re doubling down on our capabilities to enhance the general buyer expertise and look to broaden our capacity to offer sari-sari shops entry to credit score and primary monetary providers, which is a key ache level for MSMEs who’ve restricted entry. The business, operational and monetary experience and community of KKR will likely be an amazing complement to the eagerness, dedication and powerful tradition of excellence that GrowSari has constructed through the years.”
Louis Casey, KKR’s progress expertise lead in Southeast Asia, added, “GrowSari is aligned with one in every of our core expertise funding themes in Southeast Asia, which is supporting MSMEs with software program and monetary providers. Reymund and the staff at GrowSari are wonderful operators who’ve constructed a powerful flywheel that’s powered by plenty of proprietary functions. They’ve additionally constructed a really environment friendly and repeatable go-to-market movement that’s underpinning their spectacular progress. We glance to leverage our international expertise, regional connectivity and versatile capital to assist GrowSari obtain its formidable progress targets.”
Previous to KKR’s funding, GrowSari had raised funding from international monetary and strategic traders, together with Temasek-affiliated Pavilion Capital, Tencent, the Worldwide Finance Company, the Gokongwei family-controlled JG Summit, Robinsons Retail Holdings Inc., Wavemaker Companions, Saison Capital, and the Funding & Capital Company of the Philippines.
The continued Collection C spherical is considerably oversubscribed, having drawn eager curiosity from new and current traders. The spherical’s last composition is presently being finalized.
KKR is making its funding in GrowSari from its Asia subsequent technology expertise technique. GrowSari is KKR’s newest funding into firms that increase the digital transformation of MSMEs by way of software program and monetary expertise. KKR’s international investments within the sector embody KiotViet, a service provider platform for MSMEs in Vietnam, Yayoi, a software program developer, distributor, and assist service supplier for small and medium-sized enterprises (“SMEs”) in Japan, MYOB, a number one Australian on-line enterprise administration firm, NetStars, the operator of Japan’s largest QR code cost gateway, Qonto, a number one European enterprise finance answer for freelances and SMEs in France, Cegid, one of many largest European suppliers of enterprise software program headquartered in France, and Precise Software program, a supplier of enterprise and accounting software program within the Netherlands. Extra particulars of the transaction will not be disclosed.
KKR is a number one international funding agency that gives different asset administration and capital markets and insurance coverage options. KKR goals to generate engaging funding returns by following a affected person and disciplined funding strategy, using world-class folks, and supporting progress in its portfolio firms and communities. KKR sponsors funding funds that spend money on personal fairness, credit score and actual property and has strategic companions that handle hedge funds. KKR’s insurance coverage subsidiaries supply retirement, life, and reinsurance merchandise beneath the administration of The World Atlantic Monetary Group. References to KKR’s investments could embody the actions of its sponsored funds and insurance coverage subsidiaries. For extra details about KKR & Co. Inc. (NYSE: KKR), please go to KKR’s web site at www.kkr.com and on Twitter @KKR_Co.
GrowSari began in 2016 as an ordering platform servicing roughly sari-sari shops in three cities. At the moment, GrowSari powers the administration, progress, and analytics infrastructure throughout 220 municipalities and is now additional increasing. Along with offering credit score and inexpensive, on-demand stock, GrowSari’s platform additionally generates essential information & insights into the operations of those shops for producers and distributors to construct their methods and campaigns upon. GrowSari has additionally built-in multiple-microservices comparable to telco load, payments pay, e-commerce, Wi-Fi and different eservices, permitting store-owners to maximise their capital in a single pockets and simply broaden their enterprise.
GrowSari is licensed as a Nice Place To Work® within the Philippines. The GrowSari management staff consists of younger and dynamic business leaders who constructed their experience from working with international companies and consultancies together with P&G, Unilever, J&J, and Boston Consulting Group in addition to Uber, Globe Telecom, and GCash.