warehouse payA Jakarta-based market, which brings wholesalers closer to retail stores and other buyers, announced that it has closed a Series B worth more than $100 million. The company says the round was oversubscribed, exceeding its initial target of $75 million. The funding was led by Asia Partners and Falcon Edge, with participation from Sequoia Capital India, Alpha JWC and Wavemaker Partners.
This brings GudangAda’s total to date to approximately $135 million. Its last funding was a $25.4 million Series A last year, led by Sequoia Capital India and JWC Alpha Ventures.
Established in January 2019, GudangAdda is now used by half a million SMEs and covers 500 cities in Indonesia. Before raising its Series B, it had already grown to $6 billion in net trading value on a $35 million funding. Major manufacturers and distributors on the platform chain include food products company Sido Munkul, spice maker Sasa and British multinational consumer goods conglomerate Reckitt Benckiser.
Prior to starting GudangAda, founder and CEO Stevensang spent more than 25 years in Indonesia’s rapidly growing consumer goods and retail industries. Over the past 10 years, Stevensang told Nerdshala that logistics costs in Indonesia have become among the highest in the world, affecting the entire supply chain, especially SME buyers.
GudangAda helps reduce operating costs by connecting major manufacturers, distributors and retailers, and handling almost all aspects of B2B shopping, including delivery. Its mobile app includes a point-of-sale system and can also be used to manage orders, track logistics, and make payments.
Stevensang said Gudangeda focuses on several things to make inventory easier for SMEs. One is optimizing inventory turnover to increase working capital for businesses on the platform. The company also provides market research and data for the products and gives retailers a large selection of goods. Being linked to multiple suppliers on a single platform, even small retail stores sell a large number of items, but do not have the purchasing volume to order directly from distributors to purchase inventory at competitive prices.
To keep logistics costs down, Gudangeda has partnered with third party vehicle and warehouse providers to build out its coverage throughout Indonesia. For its logistics partners, it provides transportation and warehouse management systems to help them digitize their operations.
Gudangada also partners with banks to provide working capital for SMEs, allowing them to apply for loans using their data on the platform.
The funding will be used to expand GudangEda’s product categories, which now include fast-moving consumer goods, pharmaceuticals, packaging, homeware and stationery. It also plans to develop an AI-based tool that can provide personalized recommendations for merchant customers. For example, during COVID-19, the platform suggested how much disinfectant a store should stock.
In a statement, Navroz D. Udwadia, Co-Founder, Falcon Edge, said, “GudangAda is certainly the largest SME e-commerce marketplace in Indonesia with best-in-class metrics. Our research and stakeholders (principals, wholesalers) and retailers) has given us confidence in GudangAdda’s unique ROI and value addition across the ecosystem.”