Indonesian B2B marketplace GudangAda raises more than $100M in new funding

A photo of GudangAda founder and chief executive officer Stevensang

GudangAda founder and chief executive officer Stevensang

GudangAda, a Jakarta-based marketplace that brings wholesalers closer to retail stores and other buyers, announced it has closed a Series B of more than $100 million. The company says the round was oversubscribed, passing its initial target of $75 million. The funding was led by Asia Partners and Falcon Edge, with participation from Sequoia Capital India, Alpha JWC and Wavemaker Partners.

This brings GudangAda’s total raised so far to about $135 million. Its last funding was a $25.4 million Series A last year, led by Sequoia Capital India and Alpha JWC.

Founded in January 2019, GudangAda is now used by half a million SMEs and covers 500 cities in Indonesia. Before raising its Series B, it had already grown to $6 billion in net merchandise value on $35 million of funding. Principal manufacturers and distributors on the platform range include food products company Sido Muncul, seasoning maker Sasa and British multinational consumer goods group Reckitt Benckiser.

Founder and chief executive officer Stevensang spent more than 25 years in Indonesia’s fast-moving consumer goods and retail industries before starting GudangAda. Over the past 10 years, Stevensang told TechCrunch that logistics costs in Indonesia have increased to among the highest in the world, impacting the whole supply chain, especially SME buyers.

GudangAda helps lower operational costs by connecting principal manufacturers, distributors and retailers, and handling almost all aspects of B2B buying, including deliveries. Its mobile app includes a point-of-sale system and it can also be used to manage orders, track logistics and make payments.

Stevensang said GudangAda focuses on several things to make buying inventory easier for SMEs. One is optimizing inventory turnover to increase working capital for businesses on the platform. The company also provides market research and data for products and gives retailers a large selection of goods. Being connected to multiple suppliers on the same platform also lets small retail stores that sell a large selection of items, but don’t have the buying volume to order directly from distributors, to purchase inventory at competitive costs.

To keep logistics costs down, GudangAda partners with third-party vehicle and warehouse providers to build its coverage throughout Indonesia. For its logistics partners, it provides transportation and warehouse management systems to help them digitize their operations.

GudangAda also partners with banks to provide working capital for SMEs, enabling them to apply for loans using their data on the platform.

The funding will be used to expand GudangAda’s product categories, which now include fast-moving consumer goods, pharmaceuticals, packaging, homeware and stationery. It also plans to develop AI-based tools that can provide personalized recommendations for merchant customers. For example, during COVID-19, the platform suggested how much disinfectants a store should stock.

In a statement, Falcon Edge co-founder Navroz D. Udwadia said, “GudangAda is definitively the largest SME e-commerce marketplace in Indonesia with best-in-class metrics. Our research and conversations with stakeholders (principals, wholesalers and retailers) has given us confidence on GudangAda’s distinctive ROI and value addition to the entire ecosystem.”

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Australian fintech Zeller lands $50M AUD led by Spark Capital at a $400M AUD valuation

Zeller, a Melbourne-based fintech founded by former Square executives to serve small- to mid-sized businesses, has raised $50 million AUD (about $37.5 million USD) led by Spark Capital, the investment firm whose portfolio also includes Twitter, Slack and Coinbase. Zeller’s valuation is now $400 million AUD (about $301 million USD).

The funding included participation from returning investors Square Peg, Apex Capital Partners and Addition, and brings Zeller’s total raised in under a year to $81 million AUD. This amount includes a pre-launch Series A led by Addition, the investment firm started by Lee Fixel, and seed funding.

Zeller was founded last year by Ben Pfisterer, Square’s former Asia Pacific and Australia head, and Dominic Yap, the fintech’s former strategy and growth lead. The company launched its first products for small businesses on May 4, including EFTPOS (electronic funds transfer at point of sale) terminals, business accounts and cards.

The company says more than 1,500 Australian businesses signed up in the month after its launch, and weekly payment volume has been growing 200%. About 80% of businesses who started using Zeller switched from Australia’s four biggest banks, citing their desire for lower fees and better customer support.

Zeller’s new funding will be used to grow its research and engineering hub, including filling 18 new engineering roles that will support Zeller’s plan to become a fully-regulated business bank.

In a press statement, Spark Capital investor James Kuklinski said, “From our first meeting with Ben, we knew we wanted to be a part of Zeller. Australia’s business banking landscape is dominated by a small group of incumbents, and is ripe for disruption through simpler, more transparent pricing, best-in-class technology and better customer service.”

 

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