International Finance Corp. (IFC), the private-sector lending arm of the World Bank Group (WBG), has approved a financing investment of more than $10 million for Dali Discount AG (DALI) to support the expansion of its grocery network in the Philippines.

According to IFC’s latest updated disclosure on Oct. 28, its Washington-based board approved on Oct. 24 a quasi-equity financing of up to $10.07 million (over ₱595 million) for DALI to expand its grocery network in the country, with the investment’s status now pending signing.

Established at the height of the Covid-19 pandemic in 2020, DALI has quickly positioned itself as a hard-discount retailer dedicated to making everyday essentials affordable for Filipino consumers, IFC noted, adding that the grocery chain follows a no-frills, small-format model with a limited but carefully curated assortment.

DALI focuses heavily on private-label products that address basic household needs. Its offerings include staple foods such as rice, cooking oil, sauces, snacks, and beverages, as well as personal care products like soap and toothpaste, and household essentials such as detergents and cleaning supplies.

As of 2025, DALI has grown rapidly, now operating over 1,000 stores across Luzon island, IFC noted. The hard-discount format itself traces its origins to Germany, where it pioneered a stripped-down supermarket concept that emphasizes low costs and limited selections without compromising quality.

At present, DALI’s ownership is shared between its management team and a pool of financial investors, including the Manila-based multilateral lender Asian Development Bank (ADB), German development bank Deutsche Investitions- und Entwicklungsgesellschaft (DEG), and private-equity investment firms Creador, Navegar, Pavilion Capital, and Venturi Partners.

As Manila Bulletin reported in September, IFC said its investment in DALI would improve consumer access to affordable, quality household products; strengthen local suppliers through more robust supply chains; and generate wider economic benefits.

“The proposed investment aims to enhance market competitiveness by scaling up the hard-discount retail model, raising quality standards, and reinforcing supply chains,” IFC added.

The financing would also serve as an equity injection to support DALI’s growth, particularly in the Philippines, where venture capital remains relatively limited, IFC said.

IFC noted that its involvement is expected to improve the company’s fundraising prospects and strengthen its capitalization structure, helping DALI pursue sustainable expansion.

In addition to financial support, IFC will provide non-financial contributions to strengthen the company’s long-term sustainability. These include standard setting, knowledge sharing, innovation, and capacity building—by improving DALI’s environmental and social practices to ensure that growth is not only profitable but also responsible, according to IFC.

Prior to its investment commitment, IFC assessed the company’s capacity to meet performance standards, such as procedures for screening private-label manufacturers and selecting future retail and distribution sites.

As part of its due diligence, IFC conducted site visits in July to DALI’s headquarters, two distribution centers, and several stores in Cavite province.

DALI has committed to an environmental and social action plan, which is expected to be completed by February next year.

As of June this year, DALI employed a total of 7,500 people, including 15 expatriates. Part-time workers made up about 45 percent of the total headcount, whose basic salary covers a 48-hour workweek and includes up to five hours of overtime, IFC said.

While DALI stores operate daily from 6:30 a.m. to 9:30 p.m., IFC noted that the company does not employ on-site security personnel; instead, each store is monitored through security cameras and alarm systems with remote supervision.

DALI also outsources warehouse security to third-party providers, with all warehouses located within industrial parks, according to IFC.

(Ricardo M. Austria)