BukuWarung Takes Steps to Digitize Indonesia’s SMEs With Funding From Rocketship.vc

By McKenzie Carpenter Wednesday, February 10, 2021

The COVID-19 has changed the way people interact and the way people do business. While companies have been forced to adapt and integrate more digital services, fintech startups like BukuWarung have made this digital transition easier for businesses in Indonesia, especially through their platform’s app. With the recent investment from Rocketship.vc, the company will be able to expand its reach and help more SMEs, or small and mid-size enterprises, in the region.

A customer buying products from a bakery.

What Is BukuWarung?

BukuWarung is a fintech startup for accounting and bookkeeping that helps small businesses keep a record of their finances through an app. The app makes finance tracking and easier and more efficient for companies as it allows businesses access anytime, anywhere.

The fintech startup was founded in 2019 by entrepreneurs Chinmay Chauhan and Abhinay Peddisetty. It is completely free, and many different types of businesses can use the app, including laundry, salons, retail, and grocery, among others. The company currently has more than 750 locations throughout Indonesia.

Since the company is privately held, there is currently no information available regarding net worth. However, the accounting software market was valued at $12.01 billion in 2020. Furthermore, the market is expected to reach $19.59 billion by 2026 at a compound annual growth rate (CAGR) of 8.5%.

The Rocketship.vc Investment

The startup and its app aim to help Indonesian SMEs digitize their financial records by making the process easier and more efficient. SMEs account for 60% of Indonesia’s GDP and 97% of the domestic workforce. Therefore, the impact of the fintech startup is immense because this is a huge market for accounting software in the country.

The majority of the economy’s success comes from these SMEs, increasing the value of the startup. Additionally, the boost in success for SMEs, with the help of the company, could help bring back jobs for these businesses, as Indonesia lost a projected 5.5 million jobs.

With the recent investment in the business from Rocketship.vc, the company will be able to expand its reach by growing the company’s tech and product teams in Indonesia, India, and Singapore. The investment was for an undisclosed amount but brought the total funding for the startup to $20 million.

Final Takeaways

This Indonesian business has entered a market that is expected to have exponential growth over the next ten years. While navigating through a challenging market, the company is making a difference in the lives of small business owners, as they account for a huge portion of the economy in Indonesia. As a result, the startup will be able to help the business owners in need of accounting solutions and also help the economy on a larger scale.

About the Author

Headshot for author McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.

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