CrediBook, a startup that helps Indonesian retail wholesalers digitize the monetary side of their operations, has raised $1.5 million in pre-Series A financing led by Wavemaker Partners, with involvement from Alpha JWC Ventures and Insignia Ventures Partners. The capital will be used for product launches and growth into more Indonesian
cities. Established in February 2020, CrediBook becomes part of a wave of start-ups focused on digitizing little- to medium-sized organizations in Indonesia. SMEs contribute more than 60% of the country’s gdp, however many still use conventional bookkeeping systems like paper ledgers. Digitizing them makes it simpler for them to use services like online invoicing and payments, and keep financial records to make an application for working capital loans.
Some other start-ups serving Indonesian SMEs consist of BukuKas and BukuWarung, 2 digital bookkeeping apps for little B2C organizations like neighborhood shops and restaurants (both have likewise just recently raised funding). Moka and Jurnal, meanwhile, are used by larger companies. CrediBook is carving out a specific niche for itself by serving small-to-medium sized B2B companies in the retail sector, including wholesalers.
Co-founder and president Gabriel Frans told TechCrunch that the business is close to profitability and presently has more than 500,000 consumers, who use the app for bookkeeping, tracking orders from retailers and digital payments. CrediBook likewise deals with financial providers PayFazz, among its seed financiers, to provide financing to SMEs.
Frans said CrediBook prepares to include more functions, including online invoicing, to produce an end-to-end platform like Tel Aviv and New York-based B2B payment start-ups Melio, which announced a round of financing today that brought its appraisal to $1.3 billion. “We are digitizing not only the bookkeeping, however likewise the invoicing and payment processing,” Frans stated.
Most of CrediBook’s consumers are presently concentrated in the cities of Jabodetabek and Bandung, and part of its funding will be utilized for developing its user base in more locations. Frans said a lot of the start-up’s customers relied on paper ledgers prior to signing up for CrediBook, so part of the procedure of convincing them to go on the internet consists of demonstrating how having more presence into their financial resources can grow their businesses.
“We are really near our users because this is a really localized market,” stated Frans, who formerly worked at O2O platform Kudo (now called GrabKios after its acquisition by Grab in 2017) and bookings platform Traveloka. “I was already familiar with the industry based on my previous experience, and if they try our app and experience the advantage of how it will make their day-to-day issues less, they will love it.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.