Credibook Secures $1.5M to Digitize Indonesian Retail Finances

CrediBook, a company assisting Indonesian retail wholesalers in transitioning to digital financial management, has secured $1.5 million in pre-Series A funding. This investment round was spearheaded by Wavemaker Partners, with additional participation from Alpha JWC Ventures and Insignia Ventures Partners. The newly acquired funds will be allocated to the rollout of new products and the expansion of CrediBook’s services to additional cities throughout Indonesia.

Established in February 2020, CrediBook is among a growing number of startups dedicated to the digitalization of small and medium-sized enterprises (SMEs) within Indonesia. These SMEs are responsible for over 60% of the nation’s gross domestic product; however, many continue to rely on conventional accounting methods, such as manual paper ledgers. The shift to digital systems facilitates access to services like digital invoicing and payment solutions, as well as streamlined financial record-keeping for securing working capital loans.

Several other companies are also focused on providing services to Indonesian SMEs. BukuKas and BukuWarung are two examples of digital bookkeeping applications designed for small businesses that directly serve consumers, like local shops and eateries (both have recently received investment). Moka and Jurnal, in contrast, cater to the needs of larger organizations. CrediBook differentiates itself by concentrating on small-to-medium sized businesses operating within the retail sector, specifically wholesalers.

According to co-founder and CEO Gabriel Frans, as reported to TechCrunch, the company is progressing towards a sustainable and profitable business model. Currently, CrediBook serves a customer base exceeding 500,000 users, who utilize the application for bookkeeping, order tracking from retailers, and processing digital payments. The company also collaborates with financial services provider PayFazz, an early investor, to offer financing options to SMEs.

Frans stated that CrediBook intends to integrate additional functionalities, including online invoicing, with the goal of establishing a comprehensive, end-to-end platform. This mirrors the approach of B2B payment startups like Melio, based in Tel Aviv and New York, which recently achieved a $1.3 billion valuation following a new funding round. “Our focus is on digitizing not just bookkeeping, but also the invoicing and payment processes,” Frans explained.

Currently, the majority of CrediBook’s clientele is located in the Jabodetabek and Bandung metropolitan areas. A portion of the recent funding will be used to broaden its user base to encompass more regions. Frans noted that many customers previously depended on paper-based ledgers, and a key aspect of encouraging them to adopt the digital platform involves demonstrating how improved financial visibility can contribute to business growth.

“We maintain a strong connection with our users due to the highly localized nature of this market,” said Frans, who previously held positions at O2O platform Kudo (now known as GrabKios after being acquired by Grab in 2017) and travel booking platform Traveloka. “My prior experience provided me with a solid understanding of the industry, and when customers experience the benefits of our app in simplifying their daily challenges, they readily embrace it.”