ProCredit, a fintech startup specializing in lending to small and medium-sized enterprises (SMEs) in the Philippines, has successfully closed a pre-seed funding round of US$4.1 million.
The round was led by Integra Partners and saw participation from a notable lineup including the Menardo Jimenez Family Office, M Venture Partners (MVP), Cento Ventures, Gobi Partners (Gobi-Core Philippine Fund), and several local angel investors.
Founded by a team with a collective experience of over 50 years in SME lending across emerging markets and prestigious institutions such as Citigroup, Standard Chartered, ANZ, and the Asian Development Bank, ProCredit aims to revolutionize SME lending in the Philippines.
The company plans to leverage its proprietary technology to offer credit-first client engagements, a rules-based underwriting and portfolio management architecture, and flexible product offerings with risk-based pricing.
This approach is expected to not only reduce operating costs and expenses significantly but also enhance the customer experience dramatically.
ProCredit’s vision extends beyond the current funding round, with plans to expand its loan book through both organic and inorganic growth strategies and to seek additional capital.
Moreover, considering the founders’ extensive background in regulated bank lending operations across Asia, Africa, and the US, ProCredit is contemplating entering the banking sector. This move would enable the company to provide a more comprehensive suite of lending solutions to its mid-market SME clientele.
Chris Kaptein, Managing Partner at Integra Partners, expressed enthusiasm about the investment, highlighting the founding team’s experience and the significant market opportunity in addressing the credit needs of the Philippine economy’s crucial sector.
Joel Jimenez of the Menardo Jimenez Family Office emphasized the SME segment’s lending gap and ProCredit’s potential as a financial services partner of choice for SMEs.
Mayank Parekh, Founding Partner at M Venture Partners, underscored the critical need for SME financing in the Philippines, where a vast majority of formal loans are directed towards large corporations, leaving millions of SMEs and their workers with limited access to traditional financial services.
MVP’s support for ProCredit underscores its commitment to financial inclusion and the startup’s capacity to address the underserved needs of the SME sector with its focused business model and innovative underwriting technology. – PEVCJournal.com