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Despite the global rise of Generative AI, small businesses in emerging markets remain largely excluded from its benefits. While smartphone access has increased, there is still a significant gap between ownership and active use of digital tools for business management. Widespread adoption of B2B distribution or trade finance platforms in these markets has been challenging for technology providers, largely due to thin margins and limited technological savviness among small retailers. This presents a major opportunity to leverage AI to support small businesses, particularly those led by women.
The &frnds solution is a digital B2B platform that transforms the distribution landscape across the value chain of fast-moving consumer goods (FMCGS). It enables large enterprises to digitalize their sales while equipping micro and small retailers with the AI technology they need to access targeted offers, a wider range of FMCG goods, embedded financial services, and bespoke business analytics—all through a simple, chat-based interface.
Leveraging insights from 150,000 retailers and strategic partnerships with Mastercard Strive and Microsoft, and the use of Azure OpenAI and Copilot, &frnds developed an AI Agent designed to serve small retailers. Their asset-light, human-centered model enhances distribution and trade finance by improving accessibility, efficiency, and productivity across the value chain.
The AI Agent simplifies order placements for both the supplier’s sales teams and small retailers using natural language processing, making the process as easy as sending a chat message.
Functioning like a 'Super App,' it generates vast amounts of data that fuel the platform’s analytics, which supports FMCG and financial services partners to boost sales, offer targeted promotions, and provide tailored embedded financing for small retailers.
&frnds AI-driven solution will unlock small businesses’ access to finance, improve their operational efficiency, and boost their sales and competitiveness. Through further strategic partnerships, &frnds aims to support women-led retailers in other emerging markets to leapfrog directly into the AI era.
“If we do not invest in building the infrastructure and developing the use-cases for AI’s application to the 500 million micro and small businesses in emerging markets, the majority of which are led by women, we risk only furthering both the gender gap and digital divide. We are working to address this need and make the benefits of AI accessible to all.”
Dorron Mattes
Founder and CEO of &frnds
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The 2023 List of Establishments (LE) of the Philippine Statistics Authority (PSA) recorded a total of 1,246,373 business enterprises operating in the country. Of these, 1,241,733 (99.63%) are MSMEs and 4,640 (0.37%) are large enterprises. Micro enterprises constitute 90.43% (1,127,058) of total establishments, followed by small enterprises at 8.82% (109,912) and medium enterprises at 0.38% (4,763).
Like its Southeast Asian counterparts, the Philippines relies on micro, small- and medium-sized enterprises to act as the lifeblood of the national economy. The MSME sector accounts for 36% of gross domestic product and employs 63% of workers in the country. Despite their importance, MSMEs have remained largely underfinanced and constrained in their ability to grow.
As regulators encourage new players to enter the digital financial services sector, firms that take the initiative can gain an early advantage in one of the world’s largest greenfield markets.
