Indonesian marketplace for FMCG, GudangAda, has raised a “double digit million” funding round led by Alpha JWC Ventures and Wavemaker, with participation from private equity fund Pavilion Capital, according to an announcement.
While the exact size of the round is undisclosed, Alpha JWC managing partner Chandra Tjan says he believes it is the “largest seed round in Indonesia”, and will help GudangAda play a pivotal role in empowering the FMCG ecosystem and be the leading player in the region.
GudangAda is a B2B marketplace for all traders in the FMCG supply chain to meet and transact online, which looks to capitalize on the opportunity in the local FMCG market said to be worth over $50 billion. The platform connects various kinds of traders – from principals, distributors down to small retailers like mom-and-pop shops.
The Jakarta-based company aims to empower the entire FMCG supply chain ecosystem by bridging a technology gap, enabling every trader within the platform to become both a seller and buyer in conducting multiple transactions concurrently.
“It’s a tough industry to break into. Many similar tech players have tried yet many have failed or are struggling now. We build our business based on our experience and deep understanding in the industry to see which are important for the FMCG players, their pain points that we can touch, and how to influence them best,” says GudangAda founder Stevensang.
“It’s also worth noting that in this industry, relationship and trust are the most vital factors, and we’re fortunate that our track record before this can provide that and bring us to where we are right now.”
With over 25-year experience in the Indonesian and Southeast Asian FMCG and retail scene, Stevensang founded the GudangAda in 2018, after serving as Chief of Sales & Distribution at one of Indonesia’s leading FMCG companies and previously as President Director of Indonesia’s largest distribution company.
Within just one year since inception, GudangAda claims to have onboarded thousands of members (i.e. distributors, wholesalers and retailers) onto its platform, covered 500 cities in all Indonesia’s major islands from Sumatra to Papua, completed hundreds of thousands of transactions, and facilitated hundreds of millions of cartons of FMCG goods movement. The platform currently offers tens of thousands of SKUs ranging from F&B, personal care, cosmetics to cigarettes, and is broadening its product selection every week as new partners come onboard.
“On the surface, FMCG distribution might seem like an old industry that can be easily disrupted by technology startups. In reality, it is still largely offline and relationship-driven with habits that may not be so easy to change,” says Wavemaker Partners managing partner Paul Santos.
The fresh funding will be used to fuel the company’s continued business expansion, from expediting member onboarding, expanding service and solution offerings, to enhancing leadership and operational talents to accelerate growth. This year, GudangAda aims to broaden its member coverage across the FMCG value chain and integrate deeper into its existing supply chain networks.
GudangAda is one of a few Indonesian startups catering to the country’s FMCG industry. Its peers include KliDaily, which functions as a personal assistant platform that helps users order FMCG items, and Pomona, an adtech company, which pivoted in 2018 to focus on providing sales conversion tools that aim to help FMCG industry players receive sales data based on the marketing activities that they have launched.