Indonesia’s BukuWarung raises $60m led by Valar Ventures, Goodwater Capital

BukuWarung

BukuWarung, an Indonesian fintech startup that helps micro-SMEs (MSMEs) digitise their businesses, has raised $60 million in its Series A round, led by US-based VC firms Valar Ventures and Goodwater Capital, confirming an earlier story done by DealStreetAsia.

In April, we had reported about the development that marks Valar’s first funding in the archipelago. The VC fund backed by PayPal co-founder Peter Thiel earlier made headlines in March when it clocked its first investment in India, thereby backing the seed round of fintech startup Velocity.

Others who participated in BukuWarung’s oversubscribed round include its existing investors and notable angel investors such as former GoPay CEO Aldi Haryopratomo and Victor Jacobsson, founder of Europe’s most valuable startup Klarna, as well as partners from Japanese behemoth SoftBank, and Trihill Capital.

BukuWarung says the fresh capital, which brings its total funding to $80 million, will be used to ramp up its technology and product capabilities across its core accounting, digital payments, and commerce products.

Going forward, it plans to build a robust payments infrastructure to solve deeper use cases for Indonesian merchants, such as QR payments, and financial services, among others.

Founded in 2019, the Jakarta-based company entered the Indonesian market with a ledger app that helps merchants improve their bookkeeping process by tracking transactions including credit, expenses, sales, and cash flow visibility through business reports.

Its big mission, however, is to digitise Indonesia’s 60 million MSMEs which contribute over 60 per cent of the country’s GDP and employ 97 per cent of its workforce.

Since its inception, BukuWarung has added various features including inventory management, custom invoice creation, and bulk transaction features. This year, the company also launched Tokoko, a Shopify-like tool enabling merchants to create online stores and sell products through WhatsApp and other social media.

“This investment will further help us build an operating system for MSMEs, creating a positive socio-economic impact across Indonesia as the country emerges from the COVID-19 pandemic,” BukuWarung co-founder and CEO Abhinay Peddisetty said in a statement.

The company claims to have served 6.5 million merchants across its bookkeeping, payments, and e-commerce solutions. One of its main focuses now will be to enhance its online payments capabilities, which it launched last year.

BukuWarung claims it hold 90 per cent market share in the MSME online payment space and has reportedly processed around $1.4 billion annualised payments, which it expects to grow to over $10 billion by 2022.

In the long term, BukuWarung says it looks to enhance its offerings with more MSME-focused financial services such as lending, savings, and insurance.

In its efforts to provide a comprehensive fintech offering for the country’s MSMEs, BukuWarung sees stiff competition from rival bookkeeping app BukuKas, which recently announced its Series B funding round of $50 million. Interestingly, BukuKas has also rolled out a payment feature and social commerce tool, while also eyeing savings and lending capabilities for MSMEs.

Meanwhile, e-commerce unicorns Bukalapak and Tokopedia, too, are quietly foraying into the space having launched bookkeeping features in their online-to-offline (O2O) platforms for MSMEs while also offering various financial services on top of it.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.