Indonesia’s micro-retail tech startup Warung Pintar on Wednesday announced the acquisition of supply chain platform Bizzy Digital for $45 million.
The deal brings together Warung Pintar’s front-end retail digitalisation capabilities and Bizzy’s supply chain strengths in FMCG distribution.
“Having Bizzy Digital as part of the bigger Warung Pintar ecosystem will enable us to guarantee product reliability, availability, and fair pricing by working hand-in-hand with the brands’ distributors,” Warung Pintar cofounder and CEO Agung Bezharie said, on the synergy benefits of the deal.
The deal combines two entities that work with 600 brands and serve 230,000 retailers in 65 cities across Indonesia. Despite the pandemic challenge in 2020, the East Ventures and OVO-backed Warung Pintar claims to have increased the number warungs (retail kiosks) under its fold to 60,000 in November 2020. The firm plans to acquire 300,000 warungs in Q1 2021.
“As Bizzy Digital becomes part of Warung Pintar, there will be no other player as integrated up and down the supply chain. This combination will enable us to serve brands and distributors with unprecedented value-added, data-driven strategy at scale,” Bizzy Digital CEO Andrew Mawikere said in a press statement.
“As a common shareholder in both companies, we find strong synergy and efficiency by combining the two companies. Warung Pintar comes from a demand-side platform and Bizzy Digital comes from a supply-side platform. Combined they will be able to serve both consumers, retailers, and brands in the most effective way, it is really 1+1=3,” East Ventures co-founder Willson Cuaca said.
Founded in 2017, Warung Pintar has raised a total of $35.5 million in funding. Its investors include East Ventures, OVO, SMDV, Vertex Ventures, Pavilion Capital, Line Ventures, Digital Garage, Agaeti, Triputra, and Jerry Ng.
Warung Pintar had earlier in 2019 acquired another East Ventures portfolio firm Limakilo, a platform that simplifies the food supply chain by connecting farmers to food stalls and vendors.
In October 2020, Warung Pintar partnered with local accounting platform BukuWarung to develop digital solutions for accommodating the specific needs of MSMEs, such as digital bookkeeping and stock fulfillment facilities.
Meanwhile, backed by Indonesian conglomerate Sinarmas Group, Bizzy transformed itself from an e-procurement marketplace to an FMCG supply chain platform. Bizzy is said to have raised a total of $12 million in its funding rounds from SMDV, East Ventures, Ardent Capital, Maloekoe Ventures, among others.