Ph logistics and eCommerce fertile grounds for funding

The rise of eCommerce and logistics in the Philippines has provided a fertile ground for startup communities to usher in innovations within these sectors. 

The heightened focus of venture capitalists (VCs) and angel investors or funders has fueled a growing interest in recognizing the nurturing of promising products and ventures emerging from logistics and eCommerce.

According to Carlo Chen-Delantar of Pan-Asia VC, a Gobe-Core partner, in the areas of the Business-to-Customer (B2C) market, Filipino startups can develop products that could improve the services offered by logistic companies, riding on to the rapid growth of eCommerce. Despite its potential, only 23 percent of startups are going into the B2C market, Delantar said.

“As our funding landscape matures, we hope to see dramatic improvements in the Pre-Seed to Stage A Startups turnaround times,” said Delantar referring to the growth of startup communities in the Philippines attracting funders.

Delantar who was at the recently held “Geeks on A Beach” held in Panglao Island, Bohol stressed the importance of the Philippines’ startup community to leverage in the booming eCommerce and logistics sector.

He cited that the Philippines has the highest last-mile delivery rates in product deliveries. Notably, promotional campaigns, such as enticing offers for free shipping, have propelled the widespread adoption of eCommerce throughout the country.

Pinoy startups—the new age, a new generation of digital entrepreneurs should take advantage of this development, he reiterated.

During the pandemic over 10,000 micro-small and medium entrepreneurs (MSMEs) transitioned to eCommerce, yet none of them so far became millionaires. Introducing good products to aid the growth of logistics and eCommerce is ripe, he added.

According to the Department of Trade and Industry (DTI), the Philippine eCommerce market could hit US$24 billion by 2025. The country is also poised to further eCommerce growth, with a projected annual increase of 15.8 percent in transaction value from 2022-2025.

By 2025, eCommerce transactions are estimated to reach P495.2 billion or US$9.7 billion, a substantial increase from the nearly P270 recorded in 2021.

Based on a report published by Ken Research, the logistics industry contributes 4 to 6 percent to the country’s gross domestic product (GDP). Because of this, the Philippine logistics market is expected to grow at a compound annual growth rate of 8.2 percent from 2022 to 2027, reaching a market size of P1.160 trillion by 2027.

Despite this progress, the sector still faces significant challenges that could impede its continuous growth. According to the National Economic and Development Authority (NEDA), the country must improve its infrastructure and technology adoption, especially in rural areas, to remain competitive in the global market. 

Accelerating Innovation: Government and stakeholders Unite to Supercharge the Ph Startup Ecosystem

The Department of Information and Communications Technology (DITC) has inked a memorandum of understanding (MOU) with DFNN Group of Companies, and Plug and Play Tech Center, to harness the power of startups in the Philippines.

The MOU was signed by DICT Secretary Ivan John Uy, Jojo Flores of Plug and Play Tech Center, and Ricky Banaag of DFNN Group of Companies during the recently concluded 6^th Geeks On A Beach held at Panglao Island, Bohol.

“This initiative powered by Plug & Play sets out to come up with forward-looking strategies to harness the power of startups, injecting new ideas and creativity into the startup industry as well as prompt the growth of an intellectually-based economy,” said Flores.

According to Flores, the MOU is seen to accelerate the growth of the startup community in the Philippines, taking a bigger chunk of the US$3.5 billion tech/startup industry.

“We need to protect our interests where we build the products of technology and artificial intelligence (AI) by bringing everyone to build these new tech industries to protect our local industries as well, in terms of the tech/BPO industry, electronics assembly, and the like,” Flores added.

The MOU which signifies the strong collaboration of various public and private sector initiatives, is aimed at supporting the startup industry, thereby fueling the nation’s employment, bolstering foreign exchange reserves, and technological innovation that can push forward the overall economic expansion of the Philippines.

According to the MOU, stakeholders together with the government shall establish the Horizon Philippines program to catalyze the creation of new intellectual property assets that will contribute to the growth of an IP-based economy.

This approach will not only help diversify the economic landscape but will also position the country to thrive in an increasingly knowledge-driven and competitive global economy, the agreement reads.

He further said that by creating and building local tech products, the country can also use the same products to resell to other countries. The whole idea is to leverage the service industry and create and sell these to the world market.

At present, about 100 startups are making new products for the Information, Communication Technology (ICT) industry.

“Money and funds are in the private sector. Startup support funds from the private sector over the last three years raised a billion dollars from global investors and 90 percent of that is Foreign Direct Investments (FDIs). Let’s help shape our nation’s startup growth and development,” Flores noted.

Plug and Play Tech Center provides venture capital investment services. The company specializes in technological venture capital advancement by connecting blue chip corporations in industry trends as well as provide consulting services.

DFNN, Inc. is a Philippines-based information technology (IT) solutions provider and systems integrator. The Company is engaged in the provision of information technology services to financial institutions and gaming companies. It develops, operates, and maintains Web-based and wireless applications for major corporate customers with strength in solutions for financial institutions and gaming companies and provides proprietary order routing software technology and Web-advertising services to stock brokerage firms. Through its subsidiaries and affiliates, the Company also possesses licenses for electronic gaming machines (EGMs), a sports betting exchange, and digital and pari-mutuel games with the Philippine Amusement and Gaming Corporation (PAGCOR).###

Event | GOAB Hosts Exclusive Investor's Roundtable Dinner as Prelude to Main Event

As a prelude to the highly-anticipated 6th annual Geeks On A Beach (GOAB) conference, an exclusive Investor's Roundtable Dinner is set to take place on November 22, 2023, at the Bellevue Resort Hotel in Panglao, Bohol. This intimate gathering provides a unique platform for private discussions about investment topics relevant to the region and beyond.

The dinner, themed "By Investors, For Investors," aims to foster a constructive dialogue among participants on a variety of subjects, including investment opportunities, valuations in the ASEAN ecosystem, and the creation of a robust investor community. With the presence of prominent figures from the investment sector, such as venture capitalists (VCs) and angel investors, the night ensures insightful exchange and networking. VCs are professional investors who inject substantial funds into high-growth tech startups for equity and a role in governance. Angel investors, on the other hand, are affluent individuals who provide earlier, often smaller-scale investments in exchange for equity or convertible debt, offering financial backing when the venture is at a more nascent and riskier stage.

The event boasts an impressive roster of attendees, including esteemed speakers, entrepreneurs, and investors from across the globe, such as Chris McCann, Race Capital (USA); Franco Varona, Foxmont Capital Partners (PH); Paulo Campos, Kaya Founders (PH); Katrina Rausa Chan, QBO/IdeaSpace Philippines (PH); Jeremy Au, Monk's Hill Ventures (SG); Pun Jaruthassanakul, Seedstars (TH); Jojo Flores Plug and Play Tech Center (US, PH); Adriel Yong, Ascend Angels (SG); Mohan Belani, e27 (SG); Orvel Ventures (SG); Jay Fajardo, Launchgarage (PH); Mark Sng, Gentree (SG, PH); Sohun Bae, AVV Ascend Vietnam Ventures (VN); Joon Cho, Abound Capital (SG); Martin Cu, 500 Global (PH + WW); Kickstart Ventures (PH); Patricia Sosrodjojo, Seedstars (TH); and Joseph de Leon, Manila Angels Investor Network (PH).

The evening will feature a presentation on the Philippine Venture Capital Report by Franco Varona of Foxmont Capital Partners and an open facilitated discussion led by industry veterans.

The GOAB6 Investor’s Roundtable Dinner requires an Investor's ticket for participation. This ticket grants all access to the conference's extensive lineup of activities from November 22-24, including the Pre-Conference Masterclasses and the main event, which promises deep dives into the startup landscape, enriched with insights and international perspectives.

"The Investor's Roundtable Dinner is a testament to our commitment to providing a fertile ground for investment dialogues and partnerships. It sets the tone for what will be an eventful conference, teeming with opportunities for growth, innovation, and collaboration," stated Tina Amper, Co-Founder of #geeksPh, the non-profit organization behind GOAB.

As part of the Philippine Startup Week, GOAB6 represents the pulse of the Philippine tech startup ecosystem in harmony with the global community. After a five-year hiatus, GOAB is back with a more significant and bolder vision, celebrating the growth and potential of the Philippines.

GOAB is a conference for partnerships, growth, and innovation in startups, tech, and design, unleashing opportunities to collaborate in the Philippines and beyond. With the conference featuring a selection of international speakers and a showcase of promising startups from the region, GOAB6 stands as a vanguard for tech innovation in the Philippines. Interested investors and individuals seriously interested in investing in startups are encouraged to secure their spots for an evening that promises to be both enlightening and inspiring.

To purchase tickets to the GOAB Investor’s Roundtable Dinner and the main GOAB6 conference, visit https://www.geeksonabeach.com/.