BukuWarung, a fintech focused on Indonesian micro, small and medium enterprises (MSMEs), today announced that it has raised a Series A of $ 60 million. The oversubscribed funding round was led by Valar Ventures, marking the company’s first investment in Indonesia, and Goodwater Capital. The Jakarta-based startup claims this is the largest Series A cycle ever lifted by a startup focused on services for MSMEs. BukuWarung has not disclosed its valuation, but sources tell TechCrunch that it is estimated to be between $ 225 million and $ 250 million.
Other attendees included returning funders and angel investors like Aldi Haryopratomo, former CEO of payment gateway GoPay, Klarna co-founder Victor Jacobsson, and partners from SoftBank and Trihill Capital.
Founded in 2019, BukuWarung’s target market is over 60 million MSMEs in Indonesia, according to the data of the Ministry of Cooperatives and SMEs. These companies to contribute about 61% of the country’s gross domestic product and employs 97% of its workforce.
BukuWarung’s services, including digital payments, inventory management, wholesale transactions, and a Shopify-like e-commerce platform called Tokoko, are designed to digitize merchants who previously did most of their business offline. (many of its customers have started taking online orders during the COVID-19 pandemic). It is building what it describes as an “operating system” for MSMEs and currently boasts over 6.5 million registered traders in 750 Indonesian cities, most of them in Tier 2 and Tier 3 areas. have processed about $ 1.4 billion in annualized payments so far and is on track to process more than $ 10 billion in annualized payments by 2022.
BukuWarung’s new round brings its total funding to $ 80 million. The company says its growth in user numbers and payment volumes has been capital efficient, and more than 90% of its funds raised have not been spent. It plans to add more MSME-focused financial services to its platform, including loans, savings and insurance.
BukuWarung’s new funding announcement comes four months after its previous, and less than a month after competitor BukuKas revealed he had raised a Series B of $ 50 million. Both started as digital accounting applications for MSMEs before expanding into financial services and e-commerce tools.
When asked how BukuWarung plans to continue to differentiate itself from BukuKas, co-founder and CEO Abhinay Peddisetty told TechCrunch: About our payments and accounting, as evidenced by the massive growth in POS payments, as we are 10 times bigger than the closest actor in this space.
He added, “We have already had successful lending experiences with fintech and banking partners and are on track to monetize our merchants through our deep payments, accounting and other data we collect.
BukuWarung’s new funding will be used to double its current workforce of 150, located in Indonesia, Singapore and India, to 300 and expand BukuWarung’s accounting, digital payments and commerce products, including payment infrastructure. which will include QR payments and other services.