GudangAda, an online B2B marketplace for fast-moving consumer goods (FMCG), has raised US$25.4 million in Series A funding round, led by Sequoia India and Alpha JWC.
Existing investor Wavemaker Partners also joined.
This round brings the company’s total fundraise to date to US$36 million.
Also Read: Indonesian B2B marketplace for FMCG gudangada secures seed funding led by Alpha JWC, Wavemaker
The Jakarta-headquartered company said in a statement that it will use the money to enhance its platform, launch new initiatives, and strengthen the team.
Started just over a year ago, GudangAda connects small mom-and-pop retailers with wholesalers. The platform empowers the FMCG supply chain by bridging a technology gap, enabling traders to become both a seller and buyer in conducting multiple transactions concurrently. This way, business are able to sell products at cheaper rates and expand their reach.
The company claims to have a full market coverage of FMCG wholesalers in Indonesia, and it is now targeting seven to ten per cent of the nation’s large retailer base for their next phase of growth.
The limited physical interactions due to the COVID-19 pandemic are pushing wholesalers and retailers to adopt digital solutions putting the FMCG market in Indonesia in a challenging position.
With the rising awareness around the importance of social distancing, GudangAda has also launched several initiatives, including a pilot logistics service to help the merchant network maintain the availability of essential products in the local supply chain.
Also Read: Challenging existing fundamentals in logistics and supply chain
This service is currently available in Greater Jakarta, Bandung, Semarang, Medan, and Lampung, while the company has expansion plans to cover major cities nationwide within the next few months.
The company is also working on distributing government assistance to remote and secluded areas by leveraging its nationwide reach within the nation’s FMCG supply chain during the social restrictions. It also launched food donation programmes across the country for underprivileged local citizens.
Previously, GudangAda raised US$10.5 million in a seed funding round co-led by Alpha JWC Ventures and Wavemaker Partners, with participation from Pavilion Capital.
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