Gobi-Core Philippines Fund, the joint venture partnership co-managed by Manila-based venture capital firm Core Capital and Pan-Asian investor Gobi Partners, has invested in local internet solutions provider Rise Group.
The investment, whose amount was not disclosed, marks the eighth deal for Gobi-Core in the Philippines. Its portfolio already includes esports company Tier One, live streaming app Kumu, and cloud kitchen startup CloudEats.
Rise Group, launched in 2015, operates three key businesses: RISE, an internet service provider; OpenAccess, which helps property developers access more telecommunication options; and GetaFIX, a commercial carrier-neutral internet exchange.
It operates in Cebu, Manila, and Davao and seeks to enhance the Internet experience for businesses, telecom service providers, and property developers in the country.
In a statement, Gobi-Core said its investment in Rise Group aligns with its overall mandate to help nurture and empower the technological ecosystem growth in the country.
A report released by Google, Temasek, and Bain & Co last year showed that the Philippines’ digital economy is expected to reach a GMV of $35 billion by 2025, growing at a 20% CAGR from $20 billion last year.
The main driver will be the e-commerce sector, which is seen to hit $22 billion by 2025 at a 17% CAGR.
“If the overall digital economy in the Philippines is to hit $35 billion in GMV by 2025, we need to continue improving the quality of our internet infrastructure,” said Core Capital managing partner Jason Gaisano. “Through this partnership, we see a huge opportunity that remains
underserved in this business segment.”
The Gobi-Core Philippine Fund is a joint-venture partnership between Gobi Partners and Core Capital. Through its first fund, Gobi-Core PH fund, it aims to invest in the next wave of entrepreneurs in the Philippines.
Gobi-Core has been officially accredited as a co-investment partner (CIP) of the Philippine government’s Startup Venture Fund (SVF), one of the first since the fund’s inception in 2021.
Per the Innovative Startup Act (RA 11337), the Startup Venture Fund (SVF) shall be used to match investments by selected investors in startups of varying stages based in the Philippines.