Filinvest winds down venture platform for MSMEs
MANILA, Philippines — Gotianun-led Filinvest Development Corp. will soon shut down its crowdfunding affiliate, four years after launch, that was intended to support emerging small entrepreneurs at the height of the pandemic.
In a stock exchange filing on Friday, Filinvest said the dissolution of Investree Philippines Inc. had been approved by the company’s shareholders as well as Investree Singapore Pte. Ltd. and F(DEV) Digital Innovations and Ventures Inc.—each of which owns 50 percent of the fintech firm.
Investree, which has an existing permanent license from the Securities and Exchange Commission (SEC), will likewise apply for the shortening of its corporate term to Sept. 30, 2025.
READ: Crowdfunding comes to PH as Investree gets SEC nod
Under the Republic Act No. 11232, or the Securities Regulation Code, a corporation “shall have perpetual existence, unless its articles of incorporation provide otherwise.”
No material impact on Filinvest earnings
Filinvest did not explain the reason behind the shutdown, saying only that it would have “no material effect on [Filinvest’s] consolidated earnings forecast for the current year.”
“Investree [Philippines] is working diligently to facilitate a smooth transition following due process in accordance with SEC regulations,” the holding firm said.
Filinvest’s 2023 annual report showed that F(DEV), a venture studio that helps scale up startup businesses, determined its investment in Investree Philippines as “subject for impairment” considering that Investree Singapore is “no longer willing to provide additional capital infusion.”
READ: PH’s first crowdfunding portal to empower SMEs
This resulted in impairment losses totaling P106.8 million, the filing showed.
Investree Philippines was launched in 2020 as a platform that would help provide capital for micro, small, and medium enterprises (MSME) by connecting entrepreneurs to investors.
“All its stakeholders, including investors, SME partners, and employees, are being properly informed,” Filinvest said in its disclosure. “The company will continue to facilitate the payment of notes according to the terms and conditions of its agreements.”
