JAKARTA — Indonesia’s micro-retail tech startup Warung Pintar announced on Wednesday the acquisition of supply chain platform Bizzy Digital for $45 million.
The deal brings together Warung Pintar’s front-end retail digitalization capabilities and Bizzy’s supply chain strengths for faster distribution of consumer goods.
“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,” Warung Pintar cofounder and CEO Agung Bezharie said.
The deal combines two entities that work with 600 brands and serve 230,000 retailers in 65 cities across Indonesia. Despite the pandemic in 2020, OVO-backed Warung Pintar claims to have increased the number of retail kiosks to 60,000 in November 2020. The company plans to acquire 300,000 kiosks in the first quarter of this year.
“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,” Bizzy Digital CEO Andrew Mawikere said in a news statement.
“As a common shareholder in both companies, we find strong synergy and efficiency by combining the two companies,” East Ventures co-founder Willson Cuaca said. “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.”
Founded in 2017, Warung Pintar has raised $35.5 million from East Ventures, OVO, SMDV, Vertex Ventures, Pavilion Capital, Line Ventures and others.
Warung Pintar had earlier in 2019 acquired East Ventures portfolio company Limakilo, a platform that simplifies the food supply chain by connecting farmers to food stalls and vendors.
In October 2020, Warung Pintar partnered with local accounting platform BukuWarung to develop digital solutions for micro, small and medium enterprises in areas such as digital bookkeeping and stock fulfillment.
Meanwhile, backed by Indonesian conglomerate Sinarmas Group, Bizzy transformed itself from an e-procurement marketplace to a supply chain platform for fast-moving consumer goods. Bizzy is said to have raised $12 million in its funding rounds from SMDV, East Ventures, Ardent Capital, Maloekoe Ventures and others.
For the original story from DealStreetAsia, click here.
DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.