Philippine-based B2B platform Packworks has secured P3.5 million (about $60,000) in funding from the Department of Science and Technology (DOST) to support its AI research efforts.
DOST said the research funding will support the startup’s plan to develop a machine-learning-powered precision marketing model. The aim is to offer sari-sari stores (convenience stores) customized recommendations on sellable items from Packworks’ partner suppliers.
The funding comes from the DOST-Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD) Startup Grant Fund Program.
Packworks has already allocated P1.5 towards the efforts and the DOST-PCIEERD funding will support the research program. The result of the research will be launched as an AI-powered in-app service on Packworks’ Sari.PH Pro app.
The Startup Grant Fund Program aims to support technology-based startups by transforming early-stage technologies into market-ready products.
and accessible technology to them
“Our mission at DOST is to build an integrated, inclusive, and sustainable startup ecosystem. We hope to support startups at every stage of development – from formation to validation until growth,” said DOST Secretary Renato U. Solidum Jr.
Since July 2022, DOST has supported 123 startups in the country through the Startup Grant Program.
The DOST-Packworks collaboration, which will run for 18 months, aims to reach more micro-retail stores in the country to enhance their digital capabilities and foster growth, DOST said.
“This public-private partnership will be instrumental in addressing the unique challenges faced by sari-sari stores, providing them with the tools and insights needed to thrive in a competitive and increasingly digitized market,” Packworks CEO Bing Tan stressed.
Packworks provides a B2B platform that allows sari-sari store owners to become more efficient in managing their business. It started out as a solution for multinational companies in the Philippines to connect with neighborhood stores in 2018.
In 2022, the startup raised $2 million in its seed funding round co-led by Fast Group and private equity firm CVC Capital Partners.
Before raising the seed fund, the company bootstrapped its way to helping 150,000 sari-sari stores, co-founder and chief marketing officer Ibba Bernardo earlier said.