Indonesia’s micro-retail tech startup Warung Pintar announced today it has acquired Bizzy Digital, an integrated logistics and distribution supply chain B2B platform, for US$45 million.
This is part of Warung Pintar’s push to solidify its position in Indonesia’s B2B e-commerce market, which it says is expected to grow to become at least thrice the size of its B2C cousin.
As per a press note, Bizzy Digital will still remain a separate entity as a brand and organisation.
Warung Pintar noted that the acquisition would give it access to a combined pool of 600 brands and serve 230,000 retailers in 65 cities across the archipelago. The combined companies would also boast a larger shareholder foundation to support growth going forward.
With Warung Pintar’s expertise residing in the demand side of micro retailers, its partnership with Bizzy Digital will enable it to tap on the latter’s supply side capabilities and create a full-stack supply chain platform that can tackle the large and fragmented FMCG market in Indonesia.
Last month, the micro-retail tech company launched an online platform for owners of mom-and-pop stores (knows as warungs) to conduct bulk shopping from distributors for supplies.
Also Read: Warung Pintar CEO: How my grandmother inspired our vision for Indonesian mom-and-pop shops
“Through this acquisition, we are hoping to change the digital distribution approach on the ground, which is historically heavily driven by promotions and discounts as a customer acquisition strategy, which is deeply opposed by many of our FMCG partners,” said Agung Bezharie, co-founder and CEO of Warung Pintar.
“Having Bizzy Digital as part of the bigger Warung Pintar ecosystem will enable us to guarantee product reliability, availability and fair pricing by working hand-in-hand with the brands’ distributors,” he added.
“As Bizzy Digital becomes part of Warung Pintar, there will be no other player as integrated up and down the supply chain. This combination will enable us to serve brands and distributors with unprecedented value-added, data-driven strategy at scale,” said Andrew Mawikere, CEO of Bizzy Digital.
“As a common shareholder in both companies, we find strong synergy and efficiency by combining the two companies. Warung Pintar comes from a demand-side platform and Bizzy Digital comes from a supply-side platform. Combined they will be able to serve both consumers, retailers and brands in the most effective way,” said Willson Cuaca, Co-founder of East Ventures.
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Image Credit: East Ventures
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