GudangAda Secures Over $100M Funding - Indonesian B2B Marketplace

GudangAda Secures Over $100 Million in Series B Funding

Jakarta-based GudangAda, a marketplace designed to connect wholesalers with retail stores and other purchasers, has announced the successful completion of a Series B funding round exceeding $100 million. The company reported that investor demand surpassed its initial goal of $75 million, resulting in an oversubscribed round.

Investment Details

This latest funding was spearheaded by Asia Partners and Falcon Edge, with significant contributions from Sequoia Capital India, Alpha JWC, and Wavemaker Partners. To date, GudangAda’s total funding now amounts to approximately $135 million.

Previously, the company secured $25.4 million in a Series A round last year, which was also led by Sequoia Capital India and Alpha JWC.

Platform Growth and Reach

Established in January 2019, GudangAda currently serves a network of 500,000 small and medium-sized enterprises (SMEs) across 500 cities throughout Indonesia. Prior to this Series B round, the platform had already achieved a net merchandise value of $6 billion, fueled by $35 million in prior funding.

Key manufacturers and distributors utilizing the platform include prominent names such as Sido Muncul, a food products company, Sasa, a seasoning producer, and Reckitt Benckiser, a British multinational consumer goods corporation.

Addressing Logistics Challenges

Stevensang, founder and chief executive officer of GudangAda, brings over 25 years of experience in Indonesia’s fast-moving consumer goods and retail sectors to the company. He noted that over the last decade, Indonesia has experienced a substantial increase in logistics costs, becoming one of the most expensive globally, particularly impacting SME buyers.

GudangAda aims to mitigate these operational expenses by directly linking principal manufacturers, distributors, and retailers, and by managing nearly all facets of B2B procurement, including delivery services.

Features and Benefits for SMEs

The platform’s mobile application incorporates a point-of-sale system and provides functionalities for order management, logistics tracking, and payment processing.

GudangAda prioritizes streamlining inventory management to enhance working capital for businesses on the platform. Furthermore, the company delivers valuable market research and product data to retailers, offering a broad assortment of goods.

By connecting small retail stores with multiple suppliers, even those with limited purchasing power, the platform enables access to inventory at competitive prices.

Logistics and Future Plans

To maintain cost-effective logistics, GudangAda collaborates with third-party vehicle and warehouse providers to expand its coverage across Indonesia. The company also equips these partners with transportation and warehouse management systems to facilitate their digital transformation.

Looking ahead, GudangAda intends to establish partnerships with banks to offer working capital solutions for SMEs, allowing them to apply for loans based on their platform data.

Expansion and Innovation

The newly acquired funding will be allocated to broaden GudangAda’s product categories, which currently encompass fast-moving consumer goods, pharmaceuticals, packaging, homeware, and stationery. The company also plans to develop AI-powered tools to deliver personalized recommendations to its merchant customers.

As an example, during the COVID-19 pandemic, the platform proactively suggested appropriate disinfectant stock levels for stores.

Industry Recognition

Navroz D. Udwadia, co-founder of Falcon Edge, stated, “GudangAda is demonstrably the largest SME e-commerce marketplace in Indonesia, exhibiting best-in-class performance metrics. Our research and discussions with stakeholders – including principals, wholesalers, and retailers – have reinforced our confidence in GudangAda’s unique return on investment and its value contribution to the entire ecosystem.”

Note: This article has been updated to clarify that GudangAda is planning future partnerships with banks for working capital loans, and does not currently offer this service.