Indonesia’s BukuKas Raises US$9M in Pre-Series A Funding

BukuKas has hit several milestones in just eight months since its launch

Indonesia-based BukuKas, a financial management app for micro, small and medium enterprises (MSMEs), has raised US$9 million in its pre-Series A funding round, the company announced in a statement today.

The round was raised from Sequoia Capital India’s Surge, a scale-up program for startups in India and Southeast Asia, European early-stage tech investor Speedinvest, early- and growth-stage investor S7V, Asia Pacific venture investor January Capital, Saison Capital, the corporate venture arm of Credit Saison, and asset management platform Cambium Grove Capital

 According to the press release, the new funds will go toward expanding BukuKas’s product offerings and bolster its leadership in the Indonesian market. 

BukuKas was founded in December 2019 by ex-Lazada executives Krishnan Menon and Lorenzo Peracchion, and aims to simplify traditional methods of bookkeeping. The fresh funding brings the startup’s total capital pool to $12 million within just eight months of its founding, the statement said.

BukuKas’s free smartphone app enables Indonesian business owners to monitor and manage their sales, profits and credit all in one place. It offers an alternative to the traditional pen-and-paper bookkeeping used by many Indonesian MSMES. 

The Organisation for Economic Co-operation and Development (OECD) states that SMEs are responsible for nearly 97% of domestic employment, and make up for 27% of the country’s GDP. However, despite living in a digital age, many merchants and traders were stuck carrying out the laborious process of recording financial data manually, according to the press release. 

BukuKas claims that small business owners can gain up to 20% in cost reduction and save valuable time with their app. The BukuKas app also uses WhatsApp to send reminders to clients notifying them of due credit, helping MSMEs streamline and digitize their financial records.

The startup has seemingly been embraced by small Indonesian merchants and retailers, with BukuKas stating that it has 800,000 users across 753 sub-districts in Indonesia. Further, it also noted that the app has processed over $1.3 billion in annualized value of recorded transactions so far. 

“The speed at which BukuKas has grown in the last 8 months since launch has shown us that more than ever, Indonesian small businesses are ready to go digital,” BukuKas CEO & Co-founder Krishnan Menon said in the press release. 

“73% of merchants are outside of tier-1 cities today – and very few products and services are built for them,” he added. “BukuKas is committed to reaching them, they are the real Indonesia, the spine of our economy. And helping them prosper is our only goal.” 

The rising prominence of Indonesia’s fintech industry makes this a good time for fintech startups like BukuKas to firmly establish themselves in Indonesia’s growing fintech economy. 

Timing and geographical constraints may play instrumental roles in shaping the future of Indonesia’s fintech market. In 2018, almost 40% of Indonesia’s youthful population were unbanked as a consequence of geographical constraints. Therefore, more customers may take advantage of online banking processes offered by fintech platforms. 

Moreover, the effects of the current COVID-19 pandemic have led to an increase in the number of users switching from physical bank branches to online platforms. This is evidenced by Indonesia’s Bank Central Asia, the largest Southeast Asian lender, which reported a 91% annual increase in the amount of mobile banking transactions after the virus outbreak. 

Additionally, Crowdfund Insider observes that over 60% of Indonesia’s 270 million residents are “within working age, which represents a significant market for Fintech lending projects.” This could hold promising indications for the fintech industry in Indonesia. 

“The World Bank has lauded Indonesia as the country in East Asia with the most improvement in bringing its citizens into the formal financial system in the past three years,”  KPMG Indonesia says in its 2018 edition of The Fintech Edge

Until then, we’ll see what next steps BukuKas takes in the fintech sphere.

Top (L-R): BukuKas Co-founders Lorenzo Peracchione (COO) and Krishnan Menon (CEO). Image courtesy of BukuKas.

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

Top Three Weirdest Mobile Game Advertisements

Top Three Weirdest Mobile Game Advertisements

Whether on YouTube or Instagram, I’m sure you all must have seen at least one mobile game advertisement. One common trope with today’s mobile game advertisements is that they tend to mislead their audience.
You might have come across these weird ads while scrolling through social media: In the ad for the strategy game “Game of Sultans”, a sultan is fat-shaming his daughter; in the match-three puzzle game “Lily’s Garden” ad, women use washing machines as vibrators.

The Maximalist Fashion Trend Where Did It Come From and Where Is It Going

The Maximalist Fashion Trend: Where Did It Come From and Where Is It Going?

If you Google “maximalist fashion”, you will be swamped with dressing guides dedicated to this “the more, the better” trend published by leading fashion magazines in 2022. Rapidly gaining popularity in the last couple of years, maximalist styles are breaking out of the runway of an Haute Couture fashion show, a red carpet event or a K-pop performance to conquer streets in high fashion neighborhoods.

How Is Technology Influencing the Food and Beverage Industry

How Is Technology Influencing the Food and Beverages Industry?

Food waste, sustainability and animal cruelty are some of the biggest challenges facing the food and beverage (F&B) industry nowadays. Like any other sector, the industry is dipping its toe into technology and innovations to seek solutions. While we are already seeing more food tech solutions in our everyday lives, like plant-based meat alternatives and food waste management startups.

3 Innovations for a Cleaner Environment You Never Heard Of

3 Innovations for a Cleaner Environment You Never Heard Of

Innovation in clean energy, sustainable infrastructure and eco-friendly solutions to environmental hazards are the need of the hour. The burden on the world’s natural recourses is immense, and it is high time we focus on renewability and diversification. While we are only scratching the tip of the iceberg, here are three innovations working to create an environment-friendly future.