Indonesian fintech startup BukuWarung raises $60 million

Indonesian fintech startup BukuWarung has raised $60 million ( 870 billion ) in Series A funding. The round was led by US-based venture capital firm Valar Ventures , the unicorn investor behind fintech global Wise and N26, and Goodwater Capital, which has invested heavily in startups such as Coupang, Monzo and Xenophon.

James Fitzgerald, founding partner of Valar Ventures, said that MSME is one of the main economic activities in Indonesia and is part of the national culture. However , due to the epidemic, people have to give up their original choices and methods. The BukuWarung team hopes to help MSME traders adapt and integrate into online transactions.

“BukuWarung has consistently improved its performance as a market leader . They have successfully bridged the digital divide experienced by millions of traders across Indonesia and have also successfully led the shift to using digital devices. Investing in BukuWarung is an exciting decision and we are proud to announce this as our first investment in Indonesia, ” he said.

BukuWarung was founded in 2019 with the mission of digitizing Indonesia ’s 60 million MSMEs as they are the backbone of the national economy, contributing more than 60% of the country’s GDP and accounting for 97% of employment in the sector.

Initially, BukuWarung provided convenient record-keeping services to merchants across Indonesia and later developed into a digital payment solution, helping merchants shift sales from offline to online , making an indelible contribution especially during the epidemic .

Abhinay Peddisetty, co-founder and CEO of BukuWarung, said : “ BukuWarung has become a market leader in digital payments for MSMEs . This investment will further help us build an operating system for MSMEs, creating positive social and economic impact across the region . ”

“Investors’ trust has provided us with motivation and encouraged our BukuWarung to conduct business digitally. We plan to digitize SMEs across Indonesia and then expand to other countries , ” he said .

As of now, there are more than 6.5 million registered merchants on the BukuWarung platform, distributed in more than 750 regions , most of which are located in second- and third-tier cities .

Indonesia