Accounting and credit management app BukuWarung today announced that it has raised pre-series A funding. The funding was led by Quona Capital, and participated by its existing investors including East Ventures, AC Ventures, Golden Gate Ventures, Tanglin Venture Partners, and Michael Sampoerna. Founders of Indian ecommerce Snapdeal-who also invest in similar Bangalore-based app Khatabook-was also reported to join the round.
The fresh fund, combined with its undisclosed amount of seed funding led by East Ventures in April, is said to have brought its total funding to eight figures.
Despite contributing 60% of the country’s $1 trillion GDP, the majority of 60 million MSMEs in Indonesia still do their accounting and manage cash flow. BukuWarung automates this process, helping merchants to track all transactions including credit, expense, and sales, and to get cash flow visibility through business reports.
BukuWarung was founded by Abhinay Peddisetty and Chinmay Chauhan in late 2019. To date, the startup claims to have served more than 600,000 merchants across 750 locations in Indonesia.
“Micro-businesses have always been underserved in Indonesia, and have very little access to quality financial services. Left behind by banks and financial institutions, business owners have long relied on pen, paper and calculators to track cash and credit transactions. Our vision is to build the digital infrastructure for 60 million MSMEs in Indonesia, which started with a simple accounting app and digital payments. Our lead investor, Quona Capital, has deep experience around financial inclusion in emerging markets, and is a great partner for us as we scale the digital infrastructure of Indonesia,” said Abhinay.
Chinmay added that the startup has served more than 50 different categories of business, ranging from mom-and-pop stores, grocery stores, mobile top-up and electronic shops, wholesalers, traders, to online sellers and more.
In April, BukuWarung secured an undisclosed amount of seed funding led by East Ventures, and was participated by several VC firms and angel investors from tech startups such as Grab, Gojek, Paypal, Xendit, among others.
As it announced in early June, BukuWarung is currently enrolled in Y Combinator class of YC S20 and will be participating in the accelerator’s demo day in August.