GudangAda, a fast-moving consumer goods (FMCG) business-to-business (B2B) marketplace, has secured a $25.4 million series A on May 4. The round was led by Sequoia Capital India and Alpha JWC Ventures, and participated by Wavemaker Partners. The fund will be used to continue enhancing its platform, launch new business initiatives, and strengthen the internal team.
The announcement was made less than three months after the company bagged a $10.5 million seed funding round led by Alpha JWC Ventures, Wavemaker, and Pavilion Capital - the amount deemed as Indonesia’s largest seed funding yet.
The Indonesian FMCG market is valued over $50 billion and growing annually at 8%, and its businesses are still done conventionally. Through its e-commerce platform, GudangAda is building Indonesia's FMCG supply chain ecosystem by connecting various FMCG traders online - from principals, distributors, to mom-and-pop retailers.
GudangAda’s platform enables every trader to become both a seller and buyer in conducting multiple transactions at the same time. They can achieve higher sales volume with faster turnover, cheaper operational cost and procurement price, access larger customer pool and business network, and wider product selection.
The Jakarta-based company was founded in late 2018 by Stevensang. Prior to founding GudangAda, he held a key role at Orang Tua Group with more than 25-year experience in the Indonesian and Southeast Asian FMCG and retail scene.
Since its establishment, GudangAda has built its network with merchants across 500 cities, more than 50,000 large retailers, and nearly all FMCG wholesalers in the country. Its next target is to cover 7-10% of the retailer base.
The role of digital platforms has become even more crucial for businesses, particularly as COVID-19 pandemic has forced people to practice physical distancing and limited mobilization due to large-scale social restriction (PSBB). Having raised its funding amid the pandemic, GudangAda will use it to help maintain the industry.
The company recently launched a pilot logistics service, which helps traders maintain essential products’ availability in the local supply chain and continues to meet growing consumer demand. The service is currently available in Greater Jakarta, Bandung, Semarang, Medan, Lampung, and will be expanded to more major cities within the next few months.
Having a wide reach in the FMCG supply chain, GudangAda is helping distribute government assistance to remote and secluded areas. In addition, it is also organizing its own food donation programs for underprivileged local citizens.