GudangAda, a Jakarta-based marketplace that brings wholesalers closer to retail stores and other buyers, announced that it has closed a Series B of more than $ 100 million. The company says the round was oversubscribed, surpassing its initial goal of $ 75 million. Funding was led by Asia Partners and Falcon Edge, with participation from Sequoia Capital India, Alpha JWC and Wavemaker Partners.
This brings the total raised by GudangAda so far to around $ 135 million. His last financing was a $ 25.4 million Series A last year, led by Sequoia Capital India and JWC Alpha Ventures.
Founded in January 2019, GudangAda is now used by half a million SMEs and covers 500 cities in Indonesia. Before increasing its Series B, it had already risen to $ 6 billion in net merchandise value with $ 35 million of funding. Major manufacturers and distributors of the platform range include food company Sido Muncul, condiment maker Sasa and UK multinational consumer goods group Reckitt Benckiser.
Founder and CEO 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 among the highest in the world, impacting the entire supply chain, especially SME buyers.
GudangAda helps reduce operating costs by connecting leading manufacturers, distributors and retailers, and handling almost every aspect of B2B purchasing, including deliveries. Its mobile app includes a point of sale system and can also be used to manage orders, track logistics, and make payments.
Stevensang said that GudangAda focuses on several things to make inventory purchasing easier for SMEs. One is to optimize inventory turnover to increase the working capital of companies on the platform. The company also provides market research and product data and offers retailers a large selection of products. Being connected to multiple suppliers on the same platform also allows small retail stores that sell a large selection of items, but do not have the purchase volume to order directly from distributors, to purchase inventory at competitive costs.
To keep logistics costs low, GudangAda partners with third-party vehicle and warehouse providers to build its coverage throughout Indonesia. For its logistics partners, it provides storage and transportation management systems to help them digitize their operations.
GudangAda also partners with banks to provide working capital to SMEs, allowing them to apply for loans using their data on the platform.
The funds will be used to expand GudangAda’s product categories, which now include fast-moving consumer goods, pharmaceuticals, packaging, household goods and stationery. He also plans to develop artificial intelligence-based tools that can provide personalized recommendations for business clients. For example, during COVID-19, the platform suggested how many disinfectants a store should stock.
In a statement, Falcon Edge co-founder Navroz D. Udwadia said: “GudangAda is definitely Indonesia’s largest SME e-commerce market with best-in-class metrics. Our research and discussions with stakeholders (directors, wholesalers and retailers) have given us confidence in the distinctive ROI of GudangAda and the added value of the entire ecosystem. “