BukuWarung, a fintech for Indonesian MSMEs, receives $ 60 million Series A under the leadership of Valar and Goodwater – TechCrunch

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BukuWarung, a fintech focused on Indonesian micro, small and medium-sized enterprises (MSMEs), announced today that it has raised a Series A of $ 60 million. The oversubscribed round was led by Valar Ventures, the company’s first investment in Indonesia, and Goodwater Capital. The Jakarta-based startup claims this is the largest Series A round ever held by a startup focused on services to MSMEs. BukuWarung did not disclose its valuation, but sources tell TechCrunch that it is valued between $ 225 million and $ 250 million.

Other attendees included returning financiers and angel investors such as Aldi Haryopratomo, former Chief Executive Officer of Payment Gateway GoPay, Klarna co-founder Victor Jacobsson, and partner at SoftBank and Trihill Capital.

The target market of BukuWarung, which was founded in 2019, is the more than 60 million MSMEs in Indonesia, according to the Ministry of Cooperatives and SMEs. These companies contribute about 61% of the country’s gross domestic product and employ 97% of the workforce.

BukuWarung’s services, including digital payments, inventory management, bulk transactions, and a Shopify-like e-commerce platform called Tokoko, were designed to digitize merchants who previously did most of their business offline (many of its customers took part during the COVID 19 pandemic opposed to online orders. 19 pandemic). It builds what is known as an “operating system” for MSMEs and currently uses more than 6.5 million registered dealers in 750 Indonesian cities, most of them in tier 2 and tier 3 areas. It says it has processed about $ 1.4 billion in annualized payments to date and is on track to process more than $ 10 billion in annualized payments by 2022.

The new round of BukuWarung increases total funding to $ 80 million. The company says its growth has been capital efficient in terms of users and payment volumes, and that more than 90% of the funds raised have not been spent. It plans to add more MSME-focused financial services, including lending, savings and insurance, to its platform.

BukuWarung’s new funding announcement comes four months after the previous one and less than a month after competitor BukuKas announced that it had raised a Series B worth $ 50 million. Both started out as digital accounting apps for MSMEs before expanding into financial services and e-commerce tools.

When asked how BukuWarung would like to continue to differentiate itself from BukuKas, Co-Founder and CEO Abhinay Peddisetty told TechCrunch: “We don’t see this area as a winner. Our focus is on developing the best products for MSMEs, as evidenced by our execution on our payments and accounting, which shows in a massive growth of the TPV in payments as we are 10x bigger than the next player in this area. “

He added, “We have already conducted successful lending experiments with fintech and banking partners and are well on the way to monetizing our merchants backed by our extensive payment, accounting and other data we collect.”

BukuWarung’s new funding will be used to double the current workforce from 150 in Indonesia, Singapore and India to 300 and to develop BukuWarung’s accounting, digital payments and commerce products, including payment infrastructure, QR payments and other services includes.

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