How "BukuKas" raised $10 million
The backbone of Indonesia’s economy is small to medium-sized businesses, which account for 60% of its gross domestic product. Many still believe manual bookkeeping, but the impact of COVID-19 has driven small businesses to digitize more of their operations. BukuKas, one among several startups helping SMEs go browsing, announced today it's raised a $10 million Series A led by Sequoia Capital India.
BukuKas launched in December 2019 as a digital bookkeeping app, but is growing its range of services with the goal of making an “end-to-end software stack” for little businesses. Eventually, it wants to launch an SME-focused digital bank.
The funding, which brings BukuKas’ total raised thus far to $22 million, included participation from returning investors Saison Capital, January Capital, Founderbank Capital, Cambium Grove, Endeavor Catalyst and Amrish Rau.
As of November 2020, BukuKas had a registered user base of three .5 million small merchants and retailers, and had crossed 1.8 million monthly active users. During that month, the platform also recorded $17.4 billion worth of transactions on an annualized basis, a figure like quite 1.5% of Indonesia’s $1.04 trillion GDP.
BukuKas was founded by chief military officer Krishnan Menon and chief operating officer Lorenzo Peracchione, who met eight years ago while performing at Lazada Indonesia.
Menon’s previous startup was Fabelio, an Indonesian online home furnishings store. Every two months, he would visit small cities in Indonesia, like Jepara and Cirebon, to source furniture.
“One of the items that stood out was how different the Jakarta bubble is from the remainder of Indonesia, all the way from the penetration of software to financial services,” he told TechCrunch. While lecture merchants and suppliers, Menon realized that “no one is building products with them as the center of the universe,” despite the very fact that there are 56 million small businesses.