Paper.id Raises Series B Funding to Expand B2B Fintech Services in Indonesia

Indonesia’s B2B fintech company Paper.id has successfully raised an undisclosed sum in its Series B fundraising, led by Square Peg. The round saw participation from new investor SMBC Asia Rising Fund, co-founded by Sumitomo Mitsui Banking Corporation and Incubate Fund, along with existing investor Argor Capital.

With the latest funding, Paper.id CEO and Co-Founder Yosia Sugialam stated that the company aims to enhance and broaden its services, establishing itself as the primary platform for business owners to efficiently manage and process transactions. 

“Every month, businesses can handle tens, hundreds, or even thousands of payments. Managing all this manually, from recording sales orders to creating invoices and processing payments, would be time-consuming and require significant manpower,” Sugialam said during a media briefing in Jakarta.

Founded in 2017, Paper.id has been dedicated to assisting Indonesian businesses in managing their accounts receivable and accounts payable through its comprehensive invoicing and payment platform. It also provides access to various payment methods, including credit card payments with extended terms for payers. To date, Paper.id has supported over 600,000 SMEs across various sectors in Indonesia.

Paper.id grew its 2023 annual Transaction Processed Value (TPV) more than 30 times compared to 2021. 

Focusing on Indonesia’s rapidly expanding SME sector, which includes over 60 million businesses and contributes to the nation’s GDP, Paper.id plans to become a leading player in meeting SMEs’ invoicing, payment, and cash flow needs. 

Square Peg Partner Tushar Roy expressed enthusiasm about joining the Paper.id team to how businesses manage accounts, invoices, and payments. “We hope to continue to help the Paper.id team in the process of digitizing and transforming the large and economically important SME sector in Southeast Asia,” Roy stated. 

Additionally, Keiji Matsunaga, General Manager of the Digital Strategy Department at Sumitomo Mitsui Banking Corporation, highlighted the goal of contributing to the growth and acceleration of digital business in the Asia Pacific region.

“By collaborating with Paper.id, the digital supply chain can be pushed forward, focusing on smoothing transactions between SMEs and large companies by digitizing the invoicing process and increasing the flexibility of payment options,” said Keiji Matsunaga, General Manager of the Digital Strategy Department at Sumitomo Mitsui Banking Corporation. This collaboration aims to enhance the efficiency and flexibility of transactions, benefiting both small and large businesses.

Argor Partner Siddharth Pisharody highlighted Paper. id’s rapid growth and strong market presence since its initial investment in 2022. “We have admired Paper. id’s ability to quickly acquire new users, establish close partnerships with banks and payment networks, and build an integrated system for invoicing, payments, and financial products,” Pisharody stated. 

He emphasized the company’s unique approach to solving financial technology challenges in Indonesia’s B2B sector and expressed optimism for its next growth phase.

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