The International Finance Corporation (IFC) has invested USD7 million into First Circle to expand digital financial services for small and medium-sized enterprises (SMEs) in the Philippines.

Aside from the IFC, the investments in First Circle were backed by other investors which included the Endeavor Catalyst, Fasanara Capital, Insignia Ventures Partners, and Accion.

“We are proud to be a part of this funding round for First Circle and help the company expand its operations to support more Filipino businesses, especially those accessing credit for the first time,” said IFC country manager for the Philippines Jean-Marc Arbogast said in a statement on Thursday.

“Through this strategic investment, we aim to catalyze First Circle’s development of new products for which will help to foster better financial inclusion in the country,” Arbogast added.

Founded in 2016, First Circle has already funded over 3,000 customers, of which over two-thirds are SMEs accessing credit for the first time.

The firm’s credit systems provide SMEs with higher credit limits, flexible repayment options, and the low unsecured pricing in the market.

First Circle recently expanded its services to include fee-free business banking and payment solutions.

“We are thrilled to welcome IFC, the pre-eminent investor in emerging market financial services, as new shareholders at this terrific inflection point in our company’s expansion,” said First Circle chief executive officer Patrick Lynch.

“We are particularly excited by IFC’s deep technical expertise in helping fintech companies expand their services, allowing us to serve more SMEs in the country,” Lynch added.

According to Lynch, lack of access to financial services continues to hold back smaller businesses, particularly in the Philippines.

“First Circle’s customers are growing trading, manufacturing, and services businesses who are the center of their own ecosystem of employees & trading partners, and all the livelihoods they support,” said Lynch.

Since 2018, First Circle has been an official partner of the Department of Trade and Industry, helping the agency foster SME competitiveness and growth. (PNA)