IDEA
Aimed at solving the problem of expensive credit and interest in emerging countries, PawnHero has
launched the first pawnshop operating in Southeast Asia that doesn’t have an actual physical outlet.
In the Philippines, over 70% of the population has visited a pawnshop when falling short of cash. In
the country, over 17,500 pawnshops are serving around 1 million customers on a daily basis; an
appealing market that had yet to be brought online.
BUSINESS MODEL
Aside from regularly pawnable items such as jewelry and precious metals, PawnHero also accepts
personal items as collateral. These can be luxury goods, designer apparels, mobile phones, gadgets,
musical instruments, as well as equipment such as glassware, furniture, dermatologist equipment,
and more.
According to David Margendorff, founder of PawnHero, users can benefit from PawnHero in two ways:
by pawning items to request a loan and redeem their valuables once the loan has been repaid; or by
selling their items to PawnHero.
PawnHero earns revenue from the interest on the loans and by selling pawned items on its online
store in case the borrower defaults. According to Margendorff, the company manages to make a
profit by recovering 114% of the loan on average.
Post-getcash-payloan
TEAM
PawnHero was founded by David Margendorff, Nix Nolledo, and Manny Ayala.
FUNDING
PawnHero received strategic seed funding from Sulficio Tagud, CEO of 2GO, the biggest premier
logistics company in the Philippines. In addition, PawnHero also received funding from 500
Startups, IMJ Investment Partners, Kaikaku Fund (Softbank and Alibaba), and angel investors such as
Paul V. Rivera.
TIME
FOUNDED 2015 and still working until now.