The Jakarta-based startup plans to use the fresh funds to accelerate growth and step up product development. The company also plans to establish sales team in Bandung, Bali, and Surabaya.
“There are 60 million SMEs in Indonesia, majority of which are still run manually using pen and paper… We are excited to work with our new round of investors to scale the business,” said Moka CEO and co-founder Haryanto Tanjo.
Moka replaces traditional cash registers with a cloud-based POS (point-of-sale) system that runs on iOS and Android devices. It provides solutions for ringing up transactions, accepting payments, and creating reports.
Moka also enables small businesses to accept credit card payments without going through the long application process at the banks. Its merchants are spread across all sectors, from food and beverages, retail, to service.
Managing partner of East Ventures, Wilson Cuaca, said, he believes that the startup will help offline retailers to grow. This is important because offline retailers, most of them small and medium sized businesses, are among the country’s main economic drivers.
“Any software that helps the SME indirectly will contribute to the country’s growth,” Cuaca said.
“Moka will streamline business processes, increase efficiency and give traditional retail owners better visibility of their business. The company is well positioned to upgrade traditional retail SME to be a better and a data driven business; a smart SME,” he further added.
East Ventures has been investing in Moka for two years. In 2014, it participated in Moka’s seed funding round for an undisclosed amount.
Moka charges a monthly subscription fee of Rp250,000 per outlet. Since its launch in early 2015, the firm has acquired over 1,000 stores, all of which are paying.
Business owners can access the POS app on iPads and Android smartphones and tablets. A web portal can also be accessed to help owners view sales reports and manage inventory across multiple outlets.
In December, Moka signed an agreement with state-owned lender PT Bank Mandiri Tbk (BMRI) as the acquiring bank. In addition to that, the company has also partnered Telkomsel – Indonesia’s largest telecom company – that will offer the bundle of the mPOS and Telkomsel data package as a business solution for users.
A May 2013 report by Timetric says mPOS terminal adoption is expected to increase from 9.5 million in 2012 to a staggering 38 million by 2017, with a forecast CAGR of 42.7 per cent, largely driven by growth in the retail sector, increased online trade and more smartphone and card users.