Packworks, a B2B marketplace for fast-moving consumer goods (FMCG) targetting sari-sari stores (neighbourhood mom-and-pop stores) in the Philippines, has received US$60,000 in research funding from the Department of Science and Technology (DOST).
The funding was channelled through the DOST-Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) Startup Grant Fund (SGF) Program.
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The money will help Packworks develop a machine-learning-powered precision marketing model. This model will offer sari-sari stores customised recommendations on sellable items and promotions from its FMCG partners. The feature will be launched as an in-app service on the startup’s Sari.PH Pro app and is expected to benefit its network of over 270,000 stores nationwide.
The aim is to equip over 1.3 million micro-retail stores in the country with data-driven inventory management tools to enhance business growth. “Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion,” said Packworks Chief Data Officer Andoy Montiel.
Sari-sari stores are part of micro, small, and medium-sized enterprises (MSMEs) in the Philippines, which account for an overwhelming 99.5 per cent of all business establishments. Around 500,000 are in the wholesale and retail industry.
Despite serving as the primary source of daily essentials for around 94 per cent of Filipinos, Sari-sari stores often face challenges such as inadequate financial management, lack of actionable customer insights, and ineffective promotional campaigns.
Furthermore, the lack of a streamlined approach to receiving high-quality promotions, such as discounts or personalised item packages from FMCG manufacturers, restricts store owners from effectively enticing and retaining customers.
Launched in 2018 as a solution for multinational companies with only a handful of sari-sari store partners, Packworks has expanded as a B2B platform that enables growth and success throughout all stakeholders in the supply chain ecosystem, from small sari-sari store owners to wholesalers, distributors, and renowned FMCG companies and brands. Through the Sari.PH Pro app, sari-sari store owners can access pricing tools, inventory management, sales and revenue tracking, and working capital loans.
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In July 2022, Packworks raised US$2 million in seed investment led by Fast Group and global PE firm CVC Capital Partners, with participation from ADB Ventures, Arise, Techstars, and IdeaSpace Foundation.
In 2022, the startup launched Sari IQ, a business intelligence tool offering real-time and historical consumer expenditure data to help retailers and brands gain visibility into sari-sari stores and expand their reach to more customers. Analysis through the platform also helps them make data-driven decisions to boost the sales of sari-sari store owners by understanding and predicting consumer demand within their area.
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Image Credit: Packworks.
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