Asialink Finance Corp, a provider of financial solutions to small and medium enterprises (SMEs) in the Philippines, has announced secured P4 billion (about $71 million) from Malaysian private equity firm Creador.
This strategic infusion of funds will see Creador acquiring an 18% stake in Asialink, along with a seat on its board of directors, marking a significant milestone in the finance company’s efforts to expand its lending capacity and support SME growth in the country.
Founded in June 1997, Asialink has played a pivotal role in the Philippine economy by catering to the financing needs of SMEs, which are recognized as the country’s economic backbone and a key source of employment.
With over 700 personnel and thousands of independent loan consultants across its 80 nationwide branches, Asialink is committed to providing accessible, fast, and convenient financing solutions with competitive rates and swift processing times.
This latest round of funding from Creador, which is currently in the market for its sixth flagship fund, will bolster Asialink’s resources, previously augmented by P1.8 billion raised in 2022 from various banks to support its “sangla” (pawn) business, leveraging cars and trucks as collateral.
The list of lenders includes notable institutions such as the Development Bank of the Philippines, Philippine Business Bank, and UnionBank, among others.
Creador’s investment is expected to extend beyond financial support, aiming to enhance Asialink’s operational efficiency, forge international banking partnerships, and foster innovation and automation within the business.
Omar Mahmoud, managing director and country head of the Philippines at Creador Private Equity, emphasized the investment’s role in facilitating business owners’ access to financial systems, geographical expansion, product diversification, and digital transformation.
With a presence in Indonesia, Singapore, Vietnam, and the Philippines, Creador’s investment in Asialink underscores the private equity firm’s commitment to fostering economic growth and development across Southeast Asia.
This move is timely, considering that MSMEs constitute more than 99% of business establishments in the Philippines, employ 63% of the workforce, and contribute 40% to the national GDP.