Arq Capital: Smart Money for Philippine SMEs

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Arq Capital: Smart Money for Philippine SMEs

By all accounts, Arq Capital isn’t your typical financier. In a market where small and medium-sized enterprises (SMEs) struggle for oxygen, Arq Capital is injecting smart capital and a jolt of ambition into the Philippine business landscape.

Founded in 2014, Arq Capital began as a bold response to a clear market gap: viable Philippine SMEs with strong growth potential, underserved by banks and overlooked by institutional investors. 

Smart Capital Meets Smart Sectors

Arq focuses on industries shaping the next chapter of national development, with a keen eye on sustainability, innovation, and inclusion. Key areas include:

  • Smart Mobility (e.g. autonomous transit, MaaS platforms)

  • PropTech & ConTech (BIM systems, digital twins, modern construction tech)

  • Smart Living & Retail Tech (connected lifestyles, digital commerce solutions)

  • Sustainability Solutions (clean energy, decarbonization projects, climate-resilient infra)

  • Fintech & Data Analytics for Infrastructure (digital tools that modernize physical assets)

This sector lens ensures Arq isn’t just chasing returns, it’s funding long-term resilience, inclusive growth, and innovation-led development.

Capital with Conviction

Arq’s investment thesis is deceptively simple:

  • Provide growth-stage capital plus strategic support to overlooked Philippine businesses.

  • Typical check sizes fall around PHP 50 million (USD ~1M), structured flexibly as debt, convertible notes, or hybrid instruments.

This approach gives founders fuel for growth, without surrendering equity or autonomy.

And Arq doesn’t just fund. It mentors. It builds. It co-strategizes.

Geographic & Stage Focus

Though proudly based in the Philippines, Arq takes inspiration—and opportunities—from global trends. It looks to adapt proven models to the Philippine context, and help local champions scale across the region.

Arq primarily backs Series A to early Series B ventures: businesses that have found product-market fit and are ready to scale operations, expand regionally, or deepen their technology stack. Whether based in Metro Manila or regional cities, Arq is laser-focused on Philippine SMEs, and on helping them cross that tricky threshold from stable to standout.

Sector-Agnostic, Impact-Oriented

While Arq invests across sectors, real estate, logistics, manufacturing, agri, tech, it is especially bullish on sustainability, healthcare, affordable housing, and digital transformation. Its SheSecure program earmarks PHP 300 million for women-led SMEs. Its early bet on a 20 MW solar project snowballed into a 1 GW pipeline with global backers.

The throughline? Backing Philippine founders with grit, vision, and untapped momentum.

Portfolio Performance

Exits & Liquidity Events

  • Solaric – Backed in early expansion; Arq’s investment helped scale it into one of the Philippines’ leading solar energy integrators. A 20 MW solar project supported by Arq triggered a joint venture with a major utility and drew in global investors for a 1 GW pipeline.

  • Healthcare services network – Several clinics and wellness centers grew into regional chains with partial exits via buybacks and bank refinancing.

Follow-on Success

  • RuralNet – A tech-enabled agri-distribution platform that scaled beyond Central Luzon after Arq’s funding and strategic support

  • MedAccess – A women-led medical distribution business supported under Arq’s SheSecure initiative, later attracting international DFI co-investment

A Growth Partner, Not Just a Lender

What sets Arq apart is its DNA. The firm acts as co-pilot, not just capital. Its team steps in with financial engineering, operational guidance, and real-world partnerships, often helping businesses qualify for traditional financing or attract later-stage investors.

Arq’s message to entrepreneurs is clear: You don’t need to give up control to scale. You need the right partner. Connect with WOWS Global today.

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