Baskit, a startup that focuses on digitalising and growing distribution businesses in Indonesia’s supply chains, today announced that it had raised US$3.3 million in seed funding.

The funding round comes from Betatron Venture Group, Forge Ventures, Investible, 1982 Ventures, DS/X Orvel, Michael Sampoerna, and other prominent global and regional angels.

It followed a US$1.5 million pre-seed funding round that Baskit announced in March.

With the fresh funding, the company plans to accelerate expansion for proven revenue streams while doubling down on its technology stack and leveraging resources to strike numerous important contracts with brand principals and manufacturers.

“We aspire to build a platform that orchestrates all of the relevant players in the supply chain, generating economic gain and ultimately benefiting consumers. To do this, we have a razor-sharp focus on building superior tech that wins in functionality and usability for the SMEs we support,” Baskit CEO Yann Schuermans said in a press statement.

Also Read: Echelon: Breaking barriers in Southeast Asia’s supply chain

“With the raised funds, we will accelerate both our tech roadmap and city-by-city expansion, continuously embedding flexibility into our platform to cater to Indonesia’s vast and diverse landscape.”

How Baskit drives growth to a new height

Launched in November 2022, Baskit said that it had seen rapid growth since its inception, sustaining growth rates of more than 70 per cent month-on-month during the period.

In an email interview with e27, Schuermans explained the keys behind this achievement.

“Growth comes from a carefully executed go-to-market in regions that needed our solutions the most. We used local relationships and referrals to drive quick adoption and an efficient acquisition process, and have been able to effectively monetise our software, revenue-share initiatives (we take a cut if our customers grow), and signed lucrative contracts with lenders and manufacturers who want to access our wholesalers.”

He also shared the user acquisition strategy that Baskit is implementing: “Acquisition strategy is a very localised one; we play city by city and ensure that we build critical mass in each one of the areas we operate in. We’ve been very focused on West Java, particularly Greater Bandung Area, for now, and will be expanding to Greater Jakarta Area and Central Java in H2 2023.”

According to the company, the rapid expansion is reflective of a real need in the market for strengthening the operations of distributors and wholesalers.

These two players are now facing increasing competitive and fiscal pressures in the aftermath of COVID-19.

Also Read: Logistics platform for e-commerce merchants Jumppoint raises US$6.5M

This “new normal” involves high awareness but low access to tech, thinning margins and additional operational complexity from rampant inflation, and declining sales from softness in certain sectors. Baskit believes that the timing is conducive for them to support across these areas.

Schuermans said, “Collectively, trade and industry account for more than half of Indonesia’s GDP and are supported by more than 200,000 traditional distribution businesses that ensure that people can access a wide array of products, from biscuits to cement for construction.”

“While it is fashionable to disintermediate these businesses, it is not sustainable as they hold valuable infrastructure and relationships. We are deeply committed to supporting these intermediaries in their pursuits of powering their local communities and believe that doing so will yield tremendous economic benefits in the long run.”

This year, there are three things that Baskit wants to focus on: Expansion into the aforementioned areas; product improvements, particularly around its SaaS product and data product capabilities; and expansion of the number of lucrative contracts to build a solid foundation for profitability into 2024.

—

Image Credit: Baskit

The post Baskit raises US$3.3M in seed funding to empower Indonesia’s distribution infrastructure appeared first on e27.