After onboarding 100,000 sari-sari stores in Luzon on its platform, Filipino startup Growsari has announced its plan to expand to Visayas and Mindanao with the aim of hitting its target of 300,000 store partners by 2023.
The startup will be using $77.5 million it raised from its recent Series C round of funding to finance its expansion in key cities such as Iloilo, Bacolod, Cebu, Davao, and General Santos. In total, Growsari said it will now be in 20 cities and 400 municipalities nationwide.
“We are proud to share that we are on track in fulfilling our mission of creating a positive socio-economic impact to the lives of more MSME owners and the communities they serve nationwide,” said Growsari chief executive and co-founder Reymund ‘ER’ Rollan.
According to Rollan, a crucial factor that allowed the startup to grow exponentially even during the pandemic is its ability to extend a credit line to sari-sari stores – a strategy that it copied from the unique cultural trait of sari-sari stores lending or providing credit to its own customers.
Rollan explained that aside from gaining a nationwide footprint, the expansion to Visayas and Mindanao is also strategic in terms of helping in the digital transformation of the small stores they serve.
“As we get farther out into the provinces, a lot of sari-sari store owners are underserved given the challenges of FMCG (fast-moving consumer goods) distributors to physically reach them. Digital inclusion in these areas has also been slower. So, we see this as a huge opportunity where Growsari can come in to make a difference in the lives of small physical retail store owners,” added Rollan.
Aside from sari-sari-stores, Growsari also provides supplies to small local establishments such as carinderias, eateries, pharmacies, and other roadside shops.
“300,000 small physical retail stores from different parts of the Philippines will soon be able to offer services beyond the selling of essential and basic items,” shared Rollan.
The added services that Growsari store partners can have access to through the app include telco credits, money remittance, bills payment, e-commerce, WiFi, and other e-services.
“Through our platform, store owners have access to new revenue streams which allow them to maximize their capital,” said Rollan. “In addition, we are doubling down on our capabilities to improve the overall customer experience and look to expand our ability to provide access to credit and basic financial services, which is a key pain point for MSMEs who have limited access.”
Growsari was born when Rollan and his fellow co-founders realized that the small physical retail sector is underrepresented and underserved, mainly because they are technologically-marginalized and logistically difficult to organize as a group. The startup’s leadership team, particularly Rolland and chief marketing officer Maimai Madrid-Punzalan, is acutely aware of this since most of them built their expertise from working with global corporations like P&G, Unilever, and Globe Telecom.
But despite the importance of the sari-sari store to the community as the go-to commercial center of the community and the neighborhood’s social hub, Growsari said store owners make very little margins and few receive formal training on how to run a retail business. On the other hand, FMCG companies and their main distribution networks struggle to reach these stores given their small basket sizes, distance and lack of access in smaller roads.
The startup said it bridges this gap by combining goods from multiple suppliers and applying route planning efficiencies.
Another way that digitalization impacts small store owners is through Growsari’s new financial services and partner offering — the upcoming launch of Digital Payments QR Code. The service allows owners to credit their Growcoins, Growsari’s in-app currency, directly and in real-time. which is seen to help make their lives even easier.
Ultimately, the company said it hopes to reach the more than 1.1 million sari-sari stores nationwide and become their entry point for digital transformation.
For inquiries on how to become a Growsari partner, you may get in touch with Reynaldo Rubio at reynaldo.rubio@growsari.com and 09190733255.
