Startup secures P3.5 million to develop AI-powered sari-sari stores 

A local startup has secured P3.5 million in funding from the Department of Science and Technology (DOST) to help sari-sari stores compete in the digital space.

Of the P3.5 million in research funding, Packworks will allocate P1.5 million to developing a machine-learning-powered precision marketing model that will offer sari-sari stores customized recommendations on sellable items and promotions.

“Through this AI-powered model we will develop in partnership with DOST, we aim to equip small entrepreneurs with data-driven insights and targeted strategies for enhanced business success and expansion," said Packworks chief data officer and project lead Andoy Montiel.

The company, which provides a business-to-business platform that is easy to use, said the AI-powered innovation will be launched as an in-app service on Packworks’ Sari.PH Pro app and is expected to benefit over 270,000 sari-sari stores across the country.

Through the Sari.PH Pro app, the company said that sari-sari store owners can access pricing tools, inventory management, sales and revenue tracking, and working capital loans.

Inadequate financial management, a lack of actionable customer insights, and ineffective promotional campaigns are among the challenges facing sari-sari stores in the country, Packworks said.

“Furthermore, the current absence of a streamlined approach for receiving high-quality promotions, such as discounts or personalized item packages from FMCG (fast-moving consumer goods) manufacturers, restricts store owners from enticing and retaining customers effectively,” the company said.

Meanwhile, DOST Philippine Council for Industry, Energy and Emerging Technology Research and Development (DOST-PCIEERD) executive director Dr. Enrico Paringit said the partnership with Packworks will help the sari-sari store sector, which is a “vital pillar of the Philippine economy.”

“This collaboration exemplifies the government’s commitment to fostering technological advancement and economic growth through strategic public-private partnerships, as outlined in the Innovative Startup Act. We look forward to witnessing the transformative impact of this partnership on the grassroots retail industry towards driving inclusive growth and innovation across the Philippines," he said.

The partnership between the DOST and Packworks will run for 18 months. —VBL, GMA Integrated News