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Philippine-based fintech firm Peddlr has raised US$4.3 million in its seed funding round led by Patamar Capital and Crestone Venture Capital. Existing investors, including Foxmont Capital Partners and Kaya Founders, also participated in the financing, along with several angel investors such as Antler co-founder Jussi Salovaara, Antler Indonesia partner Subir Lohani, and Antler Southeast Asia associate partner Markus Bruderer.

Addressing the Digital Gap for MSMEs

Inanc Balci, co-founder of Crestone Venture Capital, said, “MSMEs have been the driving force behind the Philippines’ economy. However, the lack of digitalization of their businesses, data, and access to credit limited their growth.” Tech in Asia reports that the new capital will fuel Peddlr’s user growth, helping it reach 1 million MSMEs by the end of 2022. The funds will also be used to speed up the rollout of new app features and digital products to help neighborhood stores and micro-entrepreneurs earn more.

Peddlr’s Origins and Impact

Peddlr, which was conceived and launched in July 2021 during the pandemic, aims to digitalize the inventories and operations of the Philippines’ 1.3 million tiny corner shops (known as sari-sari stores) and the country’s approximately 20 million micro and small enterprises. The company, founded by two entrepreneurs from the Philippine countryside, has raised roughly $5 million in seed and pre-seed funding, with backers such as 500 Global and Nordstar.

Overcoming Barriers to Digitalization

Peddlr overcomes the attachment to pen-and-paper methods by offering a free app that works offline and can be used for inventory and accounting. The basic features are free, and the app doesn’t require a strong internet connection. Peddlr has 2.1 million downloads and currently supports around 1 million registered merchants on the platform.

Future Plans

Peddlr is focusing on pushing digitalization for now, with revenue generation planned for a later stage of the startup. The company also plans to roll out financial services this year 2023 to further support MSMEs.