The Irish-established loan platform, First Circle, has garnered $7 million (£5.1 million) in investment to further its digital financial services for small to medium-sized businesses in the Philippines. International Finance Corporation (IFC), Endeavor Catalyst, Fasanara Capital, as well as Insignia Ventures Partners and Accion, current investors, all contributed funding. Focussing predominantly in the Philippines, First Circle employs technology and its unique software and credit scoring system to hasten and expand access to financial aids for businesses.
Founded in 2016, First Circle has funded over 3,000 individual customers including two-thirds of SMEs availing credit for the initial time. Through new investment from IFC, the company can now increase its credit lines and deliver innovative banking solutions to these entities.
Expressing pride in being part of the financial round for First Circle, Jean-Marc Arbogast, IFC’s Country Manager for the Philippines, also conveyed intentions to aid First Circle in the creation of new products, leading to improved financial inclusion within the nation.
The company’s CEO, Patrick Lynch, expressed that they’re on the way to profitability. He also indicated that the investment from IFC, a dominant figure in emerging financial services, would lend more credibility and ensure good governance. For now, their focus is on broadening the services provided to clients and growing in the Philippines.
First Circle is currently addressing the issue of undersupply of short-term working capital and trade finance for SMEs in the Philippines by being in the early stages of introducing a bank account and payment product. They’re also providing salary advances to employees of SMEs for further development and training. With credit penetration in these SMEs standing at just 2.2% of the nation’s GDP as of 2023, this development stands as a significant step forward.