Small neighborhood stores in the Philippines that are run on pen and paper ledgers are called sari-saris. Packworks is on a mission to change that, with a mobile enterprise resource planning platform that just raised $2 million led by Fast Group and CVC Capital Partners, with participation from Arise, Techstars and Ideaspace Foundation.
The startup will use its new funding to increase its platform offerings, including funding access for businesses, and order management across the entire supply chain. An open platform for financial institutions and brands to connect directly with sari-sari owners is one of the things it plans to build.
Packworks worked with 150,000 sari-sari stores before it raised money. Five sari-sari store partners were the initial clients for it. Packworks wants to have 220,000 stores by the end of 2022, and 500,000 by the end of the following year.
sari-sari owners can use the Pack SuperStore app to manage their business. It provides access to financial products and supply ordering at a lower price. Store owners often pay higher interest rates and pay more for consumer goods, which is why the app is low bandwidth. It would like to bring down interest costs and handle money through e-payments.
A sari owner uses Packworks.
After taking a motorcycle journey to rural communities, Packworks began. They came up with the idea of working with sari-sari after taking a motorcycle journey to bring solar panels to isolated communities. They saw how sari-sari have a hard time getting supplies for their stores in the Philippines.
While doing our hobby, we also initiate advocacy activities such as bringing solar panels to isolated communities. They usually stop by sari-sari stores to eat or rest. The stores have a hard time keeping track of their inventories and getting supplies for their stores in the provinces. The three decided to make a single app. He said that they promised to share their technical know-how and inspire sari-sari owners to shift from analog processes to using technology.
Multinational companies wanted to connect with neighborhood stores. It had 220 stores by the end of the year and a valuation of $400,000. As of last year, it had reached 130,000 stores with a valuation of $139 million, and after a year it had increased to 27,828 stores.
Packworks built a suite of apps for different kinds of sari-sari stores. It created a full suite of business tools for successful people. It created an app that helps new sari-sari stores and connects them to mentors. He said that they could order from the platform. Micro-support groups help each other out
sari-sari owners can use the SuperStore app to get financial products and supplies at a lower price. Bernando wants to bring down interest costs and handle money through e-payment.
He said that there are more than one type of sari-sari stores. They have a rainbow of them. We are currently working with those that move consumer packaged goods and fast moving consumer goods, but are also working with sidewalk restaurants, agritypes, and rice vendor types. The selection of goods is what matters. We aim to have 220,000 users by the end of the year and 550,000 stores by the end of the next year.
Bernando said this year is crucial for Packworks. The transactional value of our 150,000 store network will allow us to expand our revenue model from project billing to performance billing.
Brice Cu, senior managing director and country head of Philippines for CVC Capital and a board member of Fast Group, said that they constantly search for ways to improve their country's supply chain. An immense opportunity exists to build a digital layer to connect these stores with customers and suppliers, as they are a critical component of this chain. Combining the experience and national scale of Fast with Packworks digital fabric has exciting prospects for creating supply chain efficiency.
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