Abhinay Peddisetty, co-founder of BukuWarung
BukuWarung, a fintech firm that helps Indonesia’s micro SMEs digitise their business, has raised US$60 million in Series A funding.
American VC firm Valar Ventures led the round, along with fintech unicorns Wise, N26, and Goodwater Capital.
Former GoPay CEO Aldi Haryopratomo and Klarna founder Victor Jacobsson, as well as partners from SoftBank and Trihill Capital, also participated.
This brings the two-year-old company’s total funding raised so far to US$80 million.
The fresh capital will be used to enhance the company’s tech and product capabilities across its core accounting, digital payments, and commerce products. They include building a robust payments infrastructure to solve deeper use cases for Indonesian merchants such as QR payments and financial services.
Furthermore, it plans to double its team size to 300 and triple its engineering and product teams across Indonesia, Singapore, and India, as well as remote teams in other locations.
A customer using BukuWarung app
Chinmay Chauhan and Abhinay Peddisetty (former executives at Carousell and Grab) founded BukuWarung with the vision to digitalise Indonesia’s 60 million MSMEs.
They launched an app for micro-businesses that could help them improve the bookkeeping process by tracking daily transactions, including cash flow, credit, expense, and sales.
The company also recently launched a Shopify-equivalent, called Tokoko, which allows MSMEs to create online storefronts and sell their products.
Over the last six months, BukuWarung claims to have recorded over US$15 billion worth of transactions and US$500 million in payments. The team size grew 5x to around 150 people over this period.
“BukuWarung is already a market leader in MSME digital payments growing in a cost-effective and sustainable manner since its inception. This investment will further help us build an operating system for MSMEs, creating a positive socio-economic impact across Indonesia as the country emerges from the COVID-19 pandemic,” said Peddisetty.
“COVID-19 continues to expose the vulnerabilities of Indonesian MSMEs who remain a linchpin of the national economy. We have since seen the ecosystem rally between stakeholders — big and small – to accelerate the MSMEs’ digitalization by improving their operational resilience and market reach. From my experience, BukuWarung is not only building on such efforts but also emerged as one of the key actors accelerating this much-needed transformation,” added Aldi Haryopratomo, former CEO of
GoPay.
The company most recently secured an undisclosed amount of financing from Rocketship.
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Image Credit: BukuWarung
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