Not long ago, we wrote about our Manila Founder Institute Graduate Mario Jordan Fetalino III and his growing company, Acudeen, a platform that gives small to medium-sized businesses faster access to cash when they need it. They accomplish this by letting SMEs finance their receivables ahead of time.
When we last wrote about Fetalino and his company, they were just on the cusp of becoming a major success in the Philippines. Since then, they've projected a huge growth trend this year, achieving more than most companies do in that region, or in any region around the world. And what makes this achievement all the more impressive is that they’ve only been around for about two years.
When looking at Fetalino’s professional and educational experience, it’s easy to see how he could build such a promising company. Fetalino completed a B.S. in Entrepreneurship at the University of Santo Thomas, and has created award-winning business strategies for top-notch business firms in both Philippines and Hong Kong. He is also a member of the Indus Entrepreneurs (TiE) Hong Kong and the Public Relations Society of the Philippines (PRSP). Although he is a part of the 15th batch of the Masters in Entrepreneurship program at the Ateneo Graduate School of Business, he later dropped out to pursue what he calls his "brain child", which later became Acudeen.
Fetalino's company comes from his own personal challenges dealing with maintaining cash flow in a medium-sized business. His work with his aunt in a medical publishing business five years ago proved daunting due to late payments from big company clients. They'd often face up to 90 days or more before they'd receive any money, hence making them essentially cash poor.
As Fetalino notes, small businesses are often asset rich, yet poor in cash because of being at the mercy of bigger companies who don't pay on time. In fact, according to Fetalino, only about 11 percent of large companies pay on time, a number that has gotten worse, decreasing to 8 percent in 2017.
However, it was this problem that led Fetalino to join the Manila Founder Institute, where he met co-founder Mario Salazar, whose background in banking technology perfectly complemented Fetalino’s small business experience, and Acudeen was born.
Acudeen was the answer to fighting off loan sharks who often prey on vulnerable businesses needing immediate cash. The company buys the receivables from SMEs and takes 5% out of the money given. It's a fair system many companies in the Philippines have already used to much success. For more information on how Acudeen works, check out the article, “How Blockchain Technology Can Become The Catalyst For Global Financial Inclusion — An In-Depth Analysis of The ACU Token”.
Since launching, the company is already tapping into major South Asia markets where businesses still suffer from cash flow issues.
After starting Acudeen, Fetalino managed to save many businesses in the Philippines by giving them financial inclusion. He also proved SMEs and MSMEs are very much alike by suffering from inaccessible and expensive means for financing that only stifle operations.
It's a powerful financing concept that has enabled Acudeen to become the fastest growing company in all of Asia. In just one year, they managed to strengthen ties with various financial institutions and enterprise corporations to fulfill the above financial inclusion goal.
In just under two years, Fetalino’s company managed to land a $6 million financing deal with Rizal MicroBank, a major bank in the Philippines. These investments and partnerships have already pushed Acudeen into new territory that could soon make them an international powerhouse. Also, Fetalino and Acudeen have experienced considerable success in other areas, the company won the US$500,000 equity prize at the 2017 Seedstars World competition, and have garnered numerous press mentions for their unique services.
These investments and partnerships have already pushed Acudeen into new territory that could soon make them an international powerhouse.
As the title of this blog notes, 2018 is likely going to become golden for Fetalino's company. It's reported they're estimating growth to $30 million this year after making $3 million in 2017.
This ten-fold increase is truly an eye-opener to any entrepreneur, despite Acudeen finding a vastly underfilled niche. The ability for small businesses to liquidate their assets for use in business operations is going to keep more small companies in Asia solvent. It's already working well there, but it can work in any business experiencing cash flow issues.
While Acudeen is currently focusing its efforts on helping companies in Southeast Asia, at this rate, it's only a matter of time before small businesses from around the world will benefit from their service.
