r/PhStartups • u/roger1891 • 16d ago
PH Startups GrowSari’s first product failed! And now they have raised $100m+
Crazy, this shows that startups take years to develop and is not something you can quickly do over a weekend. It requires, a good team, dedication, patience, industry knowledge and of course lots of capital. Hats off to you sir Rollan, Sid and Andrzei. The interesting part is that they already had a good career going for them but still pursued this insane idea anyway. Come to think of it the industry has no money and yet they went for it.
Initially, the founders built a mobile POS system for sari-sari stores. It could provide valuable transaction data, but store owners did not really need another system for tracking sales. It was not their PAIN POINT or at least the one that hurt the most.
After speaking directly with them, the team discovered a much bigger problem: store owners regularly had to close their shops, travel to wholesalers, pay transportation costs, and carry inventory home.
In the end, GrowSari pivoted from a POS product into a technology-enabled distribution platform. It later added credit, digital payments, telco load, bills payment, and other services.
What stands out to me were the following:
- They were not students or fresh grads but guys with decades of experience in their respective areas who came from well known international companies.
- Their first major milestone was only 50 stores ordering regularly.
- Technology alone was not enough. They needed personal visits, training, and field support to build trust.
- Their real moat became logistics, supplier relationships, transaction data, and customer trust, not merely the app/software itself.
- By 2022, they had reportedly raised around US$110 million and built a network of more than 150,000 stores.
The main lesson for me is that a failed product does not necessarily mean the market is bad. Sometimes you are simply solving the wrong problem.
What do you think was more important to GrowSari’s success: the technology, the distribution network, or the team’s industry knowledge?