TLDR:
ProCredit, a Philippine tech-enabled SME lender, has raised $4.1 million in its pre-seed funding round led by Integra Partners. The funding will help the startup expand its loan book and raise additional capital. ProCredit aims to become one of the largest SME lenders in the Philippines and plans to expand into the banking sector.
ProCredit, a Philippine tech-enabled SME lender, has announced raising $4.1 million in its pre-seed funding round.
- The funding round was anchored by Singapore-based venture capital investor Integra Partners and backed by several investors including Gobi-Core Philippine Fund.
- The funding will help ProCredit expand its loan book through organic and inorganic growth and raise additional capital.
The founder of ProCredit, Adnan Agha, stated that the funding is the first step towards the goal of building a scalable financing business to improve access to credit for SMEs in the Philippines. The startup was started by a senior founding team with extensive experience in SME lending in emerging markets.
The funding will also allow ProCredit to offer a fuller suite of lending solutions to its mid-market SME customers. The company employs a credit-first client engagement approach and uses proprietary technology for underwriting and portfolio management.
Investors who participated in the funding round were aware of the SME financing gap in the Philippines, where the banking sector has been mandated to provide loans to micro and small businesses, but allocation remains low.
ProCredit aims to play a significant role in providing improved access to credit to the country’s SME sector. The company plans to raise both debt and equity later in the year to support its expansion plans.
Early this month, Singapore-based UNOAsia, the incorporator of UNO Digital Bank in the Philippines, raised $32.1 million in its pre-Series B funding round, bringing the company’s total funding raised to date to about $75 million.
The fundraising for UNOAsia was a mix of debt and equity and was backed by investors including Gateway Partners and Creador Private Equity.
DealStreetAsia’s DATA VANTAGE earlier reported that UNOAsia allotted shares worth $12.5 million to investors. The company’s fundraising efforts indicate a growing interest in financial technology and digital banking in the Philippines.
