bukuwarung, a fintech focused on Indonesia’s Micro, Small and Medium Enterprises (MSMEs), today announced that it has raised a $60 million Series A. The oversubscribe round was led by Velar Ventures, marking the firm’s first investment in Indonesia, and Goodwater Capital. The Jakarta-based startup claims that this is the largest ever Series A round raised by a startup focused on services for MSMEs. Bukuwarung did not disclose its valuation, but sources told Nerdshala it is estimated to be between $225 million and $250 million.
Other participants included returning backers and angel investors such as Aldi Haryopratomo, former CEO of payment gateway GoPay, Klarna co-founder Victor Jacobson, and partners from SoftBank and Trihill Capital.
Established in 2019, BukuWarung’s target market is over 60 million MSMEs in Indonesia, according to statistics from Ministry of Co-operation and SME. this business Contribution It employs about 61% of the country’s GDP and 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 lost their lives due to COVID-19). Started taking online orders during – 19 pandemic). It is described as an “operating system” for MSMEs and currently boasts of over 6.5 million registered merchants in 750 Indonesian cities, most of them in Tier 2 and Tier 3 areas. It says it has processed about $1.4 billion in annual payments so far, and is on track to process more than $10 billion in annual payments by 2022.
BukuWarung’s new round brings its total funding to $80 million. The company says its growth in users and payment volume has been capital efficient, and that more than 90% of its funds have not been spent. It plans to add more MSME-centric financial services, including loans, savings and insurance, on its platform.
Bukuwarung’s new funding announcement comes four months after its previous one, and less than a month after competitor Bukucas revealed it had raised a $50 million Series B. The duo started out as digital bookkeeping apps for MSMEs before expanding into financial services and e-commerce tools.
When asked how Bukuvarung plans to remain separate from Bukucas, co-founder and CEO Abhinay Pedisetti told Nerdshala, “We don’t see this space as a winner, our focus is on the best for MSMEs. on manufacturing products as evidenced by our performance. On our payments and accounting, payments are shown by a massive increase in TPV as we are 10x bigger than the nearest player in this space.”
He adds, “We have already run successful lending experiments with partners in fintech and banks and are on track to monetize our merchants backed by our deep payments, accounting and other data that we collect.”
BukuWarung’s new funding will be used to double its current workforce of 150 to 300 based in Indonesia, Singapore and India and to develop BukuWarung’s accounting, digital payments and commerce products, which will include a payments infrastructure QR payments and other services will be included.