Indonesian accounting app for small enterprises BukuWarung has raised an undisclosed sum in its seed funding round led by East Ventures, per a statement.
The round is joined by a host of other investors including AC Ventures (previously Agaeti Ventures & Convergence Ventures), Golden Gate Ventures and Tanglin Venture Partners. Indonesian tycoon Michael Sampoerna joined the round with strategic angel investors from Grab, Gojek, Flipkart, PayPal, Xendit, Rapyd, Alterra, ZEN Rooms and others.
The company says it will use the funds to strengthen its market leadership and expand its team to grow further across engineering, product, design, growth and partnerships based out of Jakarta.
BukuWarung was founded in late 2019 by Abhinay Peddisetty and Chinmay Chauhan, both of whom worked together at Carousell. Both founders come with a strong experience of building and scaling product, growth, and revenue teams across early to late-stage internet companies like Grab, Carousell, Belong, and Near.
Within a few months of launching, BukuWarung claims that millions of credit and cash transactions have been recorded on its app by over 250,000 MSMEs across more than 500 cities and small towns in Indonesia.
“Despite the strong initial traction, we are still less than 1% done as there are over 60 million MSMEs in Indonesia who rely on outdated methods of bookkeeping, or don’t do bookkeeping at all. These merchants have limited visibility into their cash flow or the credit that they give to customers and suppliers,” says co-founder Peddisetty.
The company, adds fellow co-founder Chauhan, is confident it will have the technical know-how to develop products that drive the most utility for micro-merchants given the founders’ experience of creating products for drivers and merchants at Grab and Carousell.
Solid product development will be much needed as BukuWarung enters a vertical that is already occupied by several startups such as Jurnal (under Mekari), as well as Paper.id, which interestingly also has Golden Gate as a backer.
Though Jurnal and Paper.id offer cloud accounting services, they mainly target small and medium-sized enterprises. BukuWarung, meanwhile, is focused on the micro-businesses segment, which will give it a much larger target market.
“MSMEs are the backbone of Indonesian economy and we really believe the next wave of innovative startups will come from digitising this segment, so it was an instant fit when we met BukuWarung”, said Willson Cuaca, Co-founder and Managing Partner from East Ventures.
For East Ventures, BukuWarung becomes the firm’s latest portfolio company that aims to empower the MSME market. Other East Ventures-backed startups targeting the same market segment are Warung Pintar and Wahyoo, while Tokopedia, one of the VC firm’s earliest and most successful bets, has also launched an online-to-offline service which also involves MSMEs as partners.