Digital solutions startup BukuKas raises US$50m in Series B funding

INDONESIAN digital solutions startup BukuKas has bagged US$50 million in Series B funding, clinching an investment from angel investors Gokul Rajaram and Taavet Hinrikus, co-founders of multi-currency e-wallet Wise, among others.

The fresh funds come after BukuKas raised US$10 million in Series A funding in January, led by Sequoia Capital India, the startup said in a press statement on Tuesday.

Catering to micro, small and medium enterprises (MSMEs) in Indonesia, BukuKas started out in December 2019 as a digital ledger app for recording and managing sales and expenses before venturing into inventory management, invoicing and analytics.

The latest round of funding was announced soon after the launch of BukuKasPay in April this year. BukuKasPay allows businesses to pay suppliers and collect payment from customers through digital payment methods such as virtual bank accounts, QR codes and popular e-wallets in Indonesia. Tens of millions of US dollars in monthly payments have flowed through the platform in the four weeks since BukuKasPay's launch, the company said.

BukuKas said that as at April 2021, it has onboarded 6.3 million small traders and shop owners across its platforms, which have a combined three million monthly active users. Users have recorded an annualised transaction value of nearly US$25.9 billion, equivalent to some 2.2 per cent of Indonesia's gross domestic product (GDP), the startup added.

It aims to bring on 20 million MSMEs by the end of 2022. With the new funds raised, BukuKas hopes to strengthen its leadership and capabilities in its offices in Jakarta and Bangalore, as well as expand its stable of services for businesses.

"Indonesia is home to more than 60 million MSMEs who generate over 60 per cent of the country's GDP. Small merchants are increasingly looking for simple digital solutions to their daily problems," said Lorenzo Peracchione, chief operating officer and co-founder of BukuKas.

"Following the launch of BukuKasPay, we will continue to build trust with our merchants and support them with full suite banking and commerce solutions in the near future."