A new microfinance program concentrates on'sari-sari' retailers.

Packworks, a Philippine analytics startup, has teamed with Cebuana Lhuillier and local finance firm 1Sari Financing Corp to provide microfinance to "sari-sari" retailers in the Philippines, with the goal of reaching 270,000 of these tiny neighborhood retail shops.

Packworks, which provides a business-to-business marketplace for fast-moving consumer items for sari-sari stores, has formed a collaboration with the two financial service providers to provide affordable and accessible services to tiny retail stores.

“Sari-sari stores significantly contribute to the economic fabric of the Philippines. Our objective is to enhance financial inclusion, tap into untapped growth potential, and fortify the foundation of our retail industry,” Packworks co-founder and chief executive officer (CEO) Bing Tan said in a statement.

“We are actively pursuing these goals through strategic partnerships aimed at providing accessible and affordable financial services to empower the sari-sari store sector,” he added.

Packworks' SariSkwela initiative, which delivers microentrepreneurship learning modules to sari-sari retailers in the Philippines, gives them a credit line. The program intends to assist these stores in gaining access to vital financial services, which are sometimes restricted by rigorous standards imposed by traditional financial institutions. The company also intends to reach out to unbanked Filipinos through 'Sachet Banking'. According to the Philippine Statistics Authority, MSMEs account for 99.5 percent of all enterprises, with 90% engaged in wholesale and retail commerce, motor vehicle repair, food services, and manufacturing.