Editor’s note: This story was updated on Aug 15 to add that Hedosophia was the round’s lead investor.
London-based venture capital firm Hedosophia has led a $10 million Series A funding for majoo, an Indonesian micro, small, and medium enterprises (MSMEs) enabler, regulatory filings showed.
The Indonesian startup had on Monday said the round was led by “an undisclosed global tech investor.” Its filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) revealed the lead investor was an entity owned by Hedosophia.
The secretive VC firm invested $5.1 million in the round, which was also backed by AC Ventures, Quona Capital, BRI Ventures, and Xendit.
In its announcement, the startup said it will utilise the fresh capital to add more strategic partnerships, as well as expand its market and customer reach.
majoo offers software-as-a-service (SaaS) solutions for MSMEs, such as online cashier systems, inventory management, accounting tools, and an all-in-one management dashboard that helps businesses sell their products across various marketplace platforms.
The startup claims to have grown 800% during the COVID-19 pandemic. To date, it has processed more than 166 million transactions worth $970 million for MSMEs in more than 600 cities in Indonesia. majoo serves various kinds of businesses ranging from F&B outlets and barbershops to laundromats and convenience stores.
“This funding round from strong, global, and prominent investors makes majoo even more excited to embark on the company’s new phase,” said CEO Adi Wahyu Rahadi. “It will help expand our technology development roadmap and form foundational, strategic partnerships that will further scale our business,” he added.
The company was founded in 2019 by former LinkAja commercial head Rahadi and Audia Rizal Harahap, a former director at PT Sentra Inti Nusa Energi.
In February, majoo had raised $5 million in a pre-Series A funding round led by AC Ventures and Quona Capital, with participation from BRI Ventures and Xendit.
Indonesia has over 64 million MSMEs, which play an important role as one of the economic drivers in the country. Platforms like majoo are expected to support small businesses to emerge stronger out of the pandemic as more businesses and consumers embrace digitalisation.
“majoo is at the forefront of technologies empowering MSMEs. In addition, its customer retention rate of over 80% shows how valuable its software platform is to users,” said Adrian Li, founder and managing partner of AC Ventures.
AC Ventures is an active investor in Indonesia. It has invested in over 100 startups, including Kitabeli, Shipper, Astro, and Stockbit.
Last month, DealStreetAsia reported that AC Ventures is raising $500 million across two venture funds. It is targeting $250 million for its early-stage Fund IV and a separate $250 million for a new ‘select fund’, according to people familiar with the matter.