Filinvest Development Corp. (FDC) decided to close down pioneering crowdfunding unit Investree Philippines after its foreign partner failed to provide further capital support, forcing the Gotianun family conglomerate to absorb over P100 million in losses in 2023.
In a recent financial filing, FDC disclosed a P64 million impairment in Investree Philippines, a promising financial technology (fintech) platform.
On top of this, it also impaired P42.8 million in advances to the crowdfunding company, a 50-50 venture between Investree Singapore and FDC subsidiary f(dev) Digital Innovations and Ventures Inc. (FDEV).
“In 2023, FDEV determined that its investment in Investree Philippines is subject for impairment since the operating partner is no longer willing to provide additional capital infusion,” FDC said in the filing.
No major impact to FDC earnings
On Friday, the P50 billion property, banking, and power conglomerate announced the winding down of Investree Philippines after three years of operations.
“This matter will have no material effect on FDC’s consolidated earnings forecast for the current year,” FDC said in a stock exchange filing, adding that it will honor agreements and continue with the payment of notes.
Multi-awarded fintech
FDC had high hopes for Investree Philippines, which provides a digital platform for startups and small to medium-sized enterprises easier access to financing from a pool of investors.
Investree Philippines is a pioneer in the space, being the first company to secure a permanent crowdfunding license from the Securities and Exchange Commission.
“Since then, the platform has grown the number of notes in the system and has served nearly 150+ SMEs with their financing needs,” according to FDC.
On its first year of operations, Investree Philippine was recognized as one of the top 5 finalists for “Pandemic Growth Warriors for Startup Leaders of the Year by the ORIGIN Innovation Awards 2022”, FDC added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
