Enstack, a Philippine-based startup that helps small and medium enterprises (SMEs) manage their businesses, has announced raising $3 million in its Series A funding round.
The round was anchored by global venture capital firm Mangrove Capital Partners, an early investor in communications giant Skype and website builder Wix. The deal also marks Mangrove Capital’s first foray in Southeast Asia.
Enstack, founded by former Shopee Philippines country head Macy Castillo and Skype co-founder Geoffrey Prentice, said the funding round was also backed by Southeast Asia’s payments unicorn Xendit and William Kim of Shinsegae International.
The startup, which came out of beta last October, operates a super app that allows SMEs to manage their businesses. The app features multiple storefronts, inventory, and integrated payment and shipping solutions. It saw 5x growth in the fourth quarter of last year and expects to grow by another 10x by the end of 2023.
“Enstack’s mission is to empower underserved SMEs with integrated tools that grant flexibility, in a business landscape that is shaping-up to be a combination of both online and offline commerce,” Castillo said.
She added that the superapp makes it simple for businesses to digitize regardless of what business they own and where they are in their entrepreneurial journey.
“We have seen small businesses embrace and transition to digital and look forward to building on this momentum to help more SMEs in the Philippines and the rest of Southeast Asia be future-ready,” Castillo stressed.
Commenting on its investment in Enstack, its first in Southeast Asia, Mangrove Capital CEO Mark Tluszcz said the firm believes in Enstack’s capacity to set the standard of how tech for SME should be done.
“This shared milestone excites us to further help empower underserved SMEs in the region,” he said.
A report released by the International Institute for Management Development said the Philippines still lags behind neighbours Singapore, Malaysia, Thailand, and Indonesia in its ability and readiness to embrace digitization.