BukuWarung, a fintech focused on Indonesian micro, small and medium enterprises (MSMEs), announced today 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 biggest Series A round ever lifted by a service-focused startup 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 the GoPay payment gateway, 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 data from the Ministry of Cooperatives and SMEs. These companies contribute about 61% of the country’s gross domestic product and employ 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 level 2 and level 3 areas. have processed approximately $ 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 the previous one, and less than a month after competitor BukuKas revealed it had raised a $ 50 million Series B round. 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: On 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 financial technology partners and banks, and we are on track to monetize our merchants through our deep payments, accounting, and other data we provide. let’s 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.