BukuKas, an Indonesian fintech serving small and medium-sized enterprises’ (SMEs) digital and accounting wants, landed a $10 million Collection A led by Sequoia Capital’s Indian arm.
Present buyers additionally participated within the spherical. These embrace former PayU boss Amrish Rau, in addition to Saison Capital, January Capital, Founderbank Capital, Cambium Grove, and Endeavor Catalyst. Complete capital raised thus far stands at $22 million.
Launched in December 2019, BukuKas says it already serves some 3.5 million small service provider and retail customers from throughout Indonesia. That’s spectacular development in lower than a yr.
Starting as a digital bookkeeping app, the start-up has since diversified its product strains. One such route has seen it develop an “end-to-end software program stack” for small companies.
Within the longer-term, it intends to launch an SME-focused digital financial institution.
“The Jakarta bubble”
BukuKas’ CEO, Krishnan Menon, who beforehand labored at Alibaba-owned e-commerce agency Lazada Indonesia, explains why he and Lorenzo Peracchione – BukuKas’ chief working officer – determined to arrange the fintech
“One of many issues that stood out was how completely different the Jakarta bubble is from the remainder of Indonesia,” Menon tells TechCrunch. “All the best way from the penetration of software program to monetary companies.”
He says that regardless of SMEs’ massive presence in Indonesia, corporations weren’t constructing merchandise with them on the middle.
SMEs account for 60% of Indonesia’s gross home product (GDP), in accordance with research cited by The Jakarta Publish.
Apparently, as early as 2016, women-owned SMEs made up virtually half of Indonesia’s SME market, as per Worldwide Finance Company (IFC) information.
Indonesia’s authorities is making an attempt to encourage corporations to serve this sector with digital merchandise. Final yr, it stated it needed some ten million micro SMEs (MSMEs) to go digital by the tip of 2020.
In July 2020, solely eight million MSMEs in Indonesia had a web-based presence. There are 63 million MSMEs in whole, in accordance with the most recent Statista information.
With 3.5 million clients in whole, round half (1.8 million) of BukuKas’ customers are energetic. The platform transacts round $17.4 billion every year, which is greater than 1% of the nation’s whole GDP.
In addition to working a web-based bookkeeping resolution, BukuKas additionally offers SMEs with information. This information helps to tell different monetary companies.
Earlier than lengthy, the start-up realised the worth in an entire software program resolution which helped SMEs digitise extra areas of their operations. These embrace fee reminders for consumers by way of WhatsApp, routinely generated invoices and instruments to analyse expense patterns.
This E2E providing foreshadows the eventual improvement of a digital financial institution. Earlier than this, the fintech intends to introduce extra payment-focused merchandise.
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