Indonesian raw material procurement startup Bababos has secured $3 million in seed funding round. Venture capital firm East Ventures led the latest funding round, focusing on Indonesia’s booming tech scene. Joining them in this investment are Patamar Capital and Accion Venture Lab.
The funding comes only six months after East Ventures led the startup’s pre-seed funding round in March. The precise amount of that earlier investment remains undisclosed, but it laid the foundation for this substantial seed funding.
Bababos acts as a bridge between small and medium-sized industrial (SMI) manufacturers and reliable raw material suppliers. In a region where digitalization is still a relatively new concept for many SMEs, Bababos’ platform streamlines procurement processes in manufacturing.
With expansion in mind, Bababos plans to expand its presence in key areas, mainly the business landscapes of Greater Jakarta and Surabaya. The startup aims to achieve this by focusing on its technological capabilities and optimizing its platform. Furthermore, some of the funds will be dedicated to enhancing the company’s technical foundation and empowering its human resources.
Launched in 2022, Bababos set forth on a mission to streamline Indonesia’s fragmented raw material supply chain. The startup’s vision is to create cohesion by seamlessly connecting small and medium-sized enterprise (SME) manufacturers with dependable raw material suppliers.
This endeavor has already begun to reshape the landscape for Indonesia‘s manufacturers, bringing a much-needed digital transformation to the procurement process.
Barbados is currently in the process of developing a new web application. This platform will empower SME manufacturers to conduct online transactions, further simplifying and modernizing the procurement experience.
Since its inception, Bababos has onboarded more than 400 IKM manufacturers. It has reportedly helped businesses to expand operations by 2-3 times upon joining the Bababos network. The startup’s core value proposition revolves around providing comprehensive supply chain solutions, including manufacturing raw materials, demand aggregation, and streamlined payment facilities, offering a multifaceted approach to addressing the complex challenges SME manufacturers face in Indonesia’s market.
Bababos Co-Founder & CEO Fajar Adiwidodo said that he appreciates the support and trust given by investors in this funding round. Bababos is increasingly optimistic about the potential of the existing market, seeing the enthusiasm of IKM manufacturers, which has increased significantly until the end of the third quarter.
“Going forward, we will continue to update our partnership strategy with suppliers to provide quality raw materials at the best price,” said Fajar.
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