Philippine SME Lender Secures $4.1 Million in Pre-Seed Funding to Expand Loan Offerings

In the Philippines, small and medium-sized enterprises (SMEs) form the backbone of the economy, comprising a staggering 99.5% of all businesses. However, despite their significant presence, many local SMEs face challenges accessing credit, with 67% grappling with credit constraints as of last year. For numerous business owners, the cumbersome process associated with traditional bank loans proves to be too much of a hassle.

Addressing this pressing issue is ProCredit, a Filipino lending firm that is revolutionizing the lending landscape by engaging business owners directly with its senior decision-makers from the outset. By streamlining the lending process and eliminating the need for layered decision-making procedures, ProCredit offers a more efficient and personalized approach to business financing.

In a testament to its potential impact, ProCredit recently raised an impressive US$4.1 million in a pre-seed round led by Integra Partners, with participation from notable investors such as the Menardo Jimenez Family Office, M Venture Partners (MVP), Cento Ventures, Gobi-Core Philippine Fund, and angel investors.

One of the key differentiators of ProCredit's business model is its commitment to conducting physical visits to customers' places of business. By engaging directly with borrowers and gaining firsthand insights into their operations, ProCredit is able to mitigate the risk of bad loans and tailor its lending solutions to meet the unique needs of each business.

Looking ahead, ProCredit has ambitious plans for expansion. With the aim of raising additional capital, the company intends to grow its loan book and enter the banking sector. Leveraging the extensive experience of its founders, who hail from esteemed financial institutions such as Citigroup, Standard Chartered, ANZ, and the Asian Development Bank, ProCredit seeks to offer a comprehensive suite of lending solutions to its customers.

Founded in 2023, ProCredit has quickly garnered attention for its innovative approach to SME financing. With a seasoned founding team at the helm and strong backing from investors, the company is well-positioned to drive meaningful change in the Philippine lending landscape and empower SMEs to thrive and grow.