PH-Based First Circle Scores P410 Million Funding to Expand Loan Book for SMEs

Financial technology company First Circle has secured P410 million ($7 million) in investment from Washington-headquartered International Finance Corporation (IFC). The capital will allow the fintech to raise funds to expand its loan book for small and medium enterprises (SMEs). For IFC, the private sector arm of the World Bank Group, this is especially crucial in a country where credit penetration is among the lowest in Southeast Asia.

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SMEs are no exception to the lack of loan opportunities in the Philippines. With only nearly half of Filipinos having access to traditional banks, this latest investment in lenders like First Circle is another step aimed at promoting financial inclusion and development in the overall finance market.

“With data and technological edge as the cornerstone of First Circle’s strategy, the company is providing unsecured credit lines to SMEs with competitive rates, flexible repayment options, [and] fast digital operations,” IFC said in a statement.

The P410-million funding adds to the existing capital of First Circle—an undisclosed amount—from fintech impact investor Accion Venture Lab, institutional asset manager Fasanara Capital, technology venture capital firm Insignia Ventures, and VC Venture Capital, among others.

First Circle is a fintech company based in the Philippines. Founded in 2016, it provides financing for SMEs to empower their growth markets, specifically through business-to-business (B2B) trade transactions.

IFC, meanwhile, is the largest global development institution focused on the private sector. It invests in projects it considers “impactful” to help encourage the growth of companies in developing countries.