9.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	9.0

* These investment figures are indicative

As part of this Project, IFC seeks to support the acceleration of Growsari’s growth plans throughout the Philippines and anticipates that the Project Outcomes are Very Strong, derived from increased access to supply chain for informal retailers, with the potential to result in improved efficiency. Most retailers on the platform are expected to be informal and run by women, qualifying the Project as an Inclusive and Gender Business. Beyond the Project, the Contribution to Market Creation is Strong, aiming to substantially strengthen the integration of the retail value chain in the Philippines through digitalization, via demonstration and replication channels. A successful expansion by the Company is expected to demonstrate the viability of this business model, thereby triggering replication by new entrants and traditional players, and therefore promoting faster digitalization of retail supply chains, beyond the Company. Integration – (i) Increased integration of the retail value chain in the Philippines through digitalization, via demonstration and replication channels. The Philippine retail value chain, which entails a B2B segment from manufacturers, distributors, and wholesalers to retailers; and a B2C segment from retailers to consumers, remains underdeveloped due to significant frictions in the B2B segment arising from the presence of multiple middlemen and fragmentation.

Financial Additionality: (i) own account equity: IFC committed US$1.5 million from its own account to support the Company’s expansion and is now looking to invest up to US$10 million. The Philippines experiences limited availability of venture capital, as the 5-year average penetration of venture capital was 0.01 percent, substantially below the emerging markets average (0.04 percent, excluding China and India). Furthermore, most VC investment in Filipino startups involved e-commerce and SaaS technologies, while supply chain ventures founded in the Philippines, other than the Company, have raised limited venture capital funding since 2010. Non-Financial Additionality (i) Knowledge, innovation, and capacity building. The current Project involves the acceleration of the Company’s growth plans by introducing its core business, B2B FMCG supply chain distribution for small retailers, within and beyond Metro Manila, as well as by expanding its offering of additional value-add services. IFC will leverage its expertise to enhance the capacity of the Company to develop financial products for retailers. Furthermore, through educational campaigns and marketing materials, the Project is expected to enhance the Company’s retailer retention rate and formalize the onboarding experience, especially for women. Finally, IFC will leverage its inhouse expertise on artificial intelligence and machine learning to advise on potential technology improvements.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.