Indonesia’s BukuKas, which offers a bookkeeping app for micro, small and medium enterprises (MSMEs), on Tuesday announced it has raised $50 million in Series B funding.
The round was backed by angel investors Gokul Rajaram and TransferWise co-founder Taavet Hinrikus, per a statement.
The funding comes four months after BukuKas’s $10 million Series A round, led by Sequoia Capital India, in January.
Starting with a digital ledger app for small business owners, BukuKas today also provides inventory management, invoicing, and analytics to its clients.
The startup will use the fresh funding to strengthen its leadership team, engineering and product capabilities at its Jakarta and Bangalore offices and expand the range of services offered to merchants.
“We are grateful for the trust from our investors–both new and existing–who believe in our team and our vision to digitise Indonesian MSMEs. We are delighted to have them on board for the next phase of our journey and this new investment round will fuel our growth as we continue to build out an all-in-one financial solution for small businesses–which we believe are the backbone of Indonesia,” said BukuKas CEO and co-founder Krishnan Menon.
BukuKas was launched in December 2019 and initially incubated by Whiteboard Capital. As of April 2021, it claims to have onboarded 6.3 million small businesses across its platforms and have 3 million monthly active users (MAU).
By the end of 2022, BukuKas aims to onboard 20 million MSMEs.
It has made a series of strategic moves to accelerate its expansion. It acquired digital ledger app Catatan Keuangan Harian in Sept 2020 to gain market share. Soon after, it launched commerce enablement platform ‘Tokko’ to help merchants sell more effectively on social commerce channels and set up online stores.
Last month, it launched a new payment feature called ‘BukuKasPay’ to enable MSMEs to pay their suppliers and collect money digitally from their customers.
Small businesses, or warungs as they are called locally, have attracted a host of startups and investors seeking to capitalise on the digitalisation opportunity they offer. According to a 2019 CLSA report, Indonesia’s 6 million warungs accounted for 65-70% of the country’s retail sales.
This year, among prominent deals in the space, B2B commerce company Ula closed a $20 million Series A round in January. The month of February saw accounting startup BukuWarung — a key BukuKuas competitor — secure an undisclosed amount of capital from Silicon Valley-based investor Rocketship.vc.
Bigger unicorns are also eyeing the space.
Bukalapak, which has made O2O a priority and has onboarded more than 6 million offline MSME partners, earlier this year rolled out a bookkeeping feature on its Mitra Bukalapak app for its partners, most of whom are warung owners. Tokopedia has also launched new features on its Mitra Tokopedia platform resembling bookkeeping services.