JAKARTA, 19 September 2023 – Manufacturing raw material procurement platform Bababos has secured US$ 3M in seed funding. The round was led by East Ventures, with the participation from Patamar Capital and Accion Venture Lab. This new funding was completed six months after the pre-seed funding in March 2023.
The fresh fund will be allocated to accelerate business expansion – which is currently available in the Greater Jakarta and Surabaya areas – with the focus on bolstering its technology stack and leveraging resources to build a seamless platform connecting small and medium enterprises (SME) manufacturers with the best raw material suppliers.
Co-Founder & CEO of Bababos, Fajar Adiwidodo stated, “We truly appreciate the support and trust that we received from investors through this round of funding. We are optimistic about the market potential as we witness a significant demand increase from SME manufacturers until the end of Q3. We aspire to sharpen our partnership strategy with suppliers with the aim of providing the highest quality raw material at the best prices.”
Launched in 2022, Bababos is committed to transform the fragmented raw material supply chain in Indonesia. SME manufacturers are facing several challenges such as limited access to high quality raw materials, less transparent pricing, and limited financial support for working capital. Conversely, raw material suppliers tend to undergo deadlock concerning stock inventory plans due to scattered demand.
To resolve these complex challenges, Bababos offers three main solutions, including: the supply of manufacturing raw material, demand aggregation and flexible payment terms. These solutions are aimed to boost efficiency for SME manufacturers in procuring various raw materials, ranging from steel, polymers, and chemicals.
Technology plays a big role in enhancing Bababos competitive edge. The platform is integrating the modern approach into the traditional industry by digitising all of the procurement processes and leveraging big data to accurately cluster demands based on the raw material and geographical needs. It has enabled fast and timely delivery from suppliers to customers, providing a seamless experience as well as cost efficiency. To further optimise the platform, Bababos is currently developing a new feature in the form of a web application that allows SME manufacturers to process their transactions online.
“We are glad to experience the positive development of Bababos, and we are thrilled to continue our support in Bababos. Their tech-based innovative approach in the highly conventional and fragmented industry has been essential. This funding round has again signified our belief in Bababos. We look forward to witnessing the further growth and positive impacts that Bababos brings to the industry,” said Melisa Irene, Partner at East Ventures.
Since its launch, Bababos has experienced remarkable growth and reached more than 400 SME manufacturers. They have experienced positive impact after joining Bababos ecosystem, where the majority are experiencing the business growth by 2-3 fold. In its mission to revolutionise the supply chain by providing equitable access for the manufacturing industry, Bababos aims to reach 1,000 SME manufacturers by the end of 2023.
Bababos is a manufacturing raw material procurement platform that connects small and medium enterprises (SME) manufacturers with the best suppliers. The platform enables SME manufacturers to easily access a variety of high-quality raw materials, from steel and other metal products to polymers and chemicals, eliminating the need to manage multiple suppliers. Bababos strives to transform procurement processes by digitising administration tasks for a seamless experience. As part of its commitment to further grow the industry and SME manufacturers, Bababos also offers flexible payment terms that ease their financial burden, allowing them to focus on what they do best – producing high-quality goods.
About East Ventures
East Ventures is a pioneering and leading sector-agnostic venture capital firm. Founded in 2009, East Ventures has transformed into a holistic platform that provides multi-stage investment, from Seed to Growth stage investments, for over 300 tech companies across Southeast Asia.
As an early believer in the startup ecosystem in Indonesia, East Ventures is the first investor of Indonesia’s unicorn companies, namely Tokopedia and Traveloka. Other notable companies in East Ventures’ portfolio include Ruangguru, SIRCLO, Kudo (acquired by Grab), Loket (acquired by Gojek), Tech in Asia, Xendit, IDN Media, MokaPOS (acquired by Gojek), ShopBack, KoinWorks, Waresix, and Sociolla.
East Ventures was named the most consistent top-performing VC fund globally by Preqin and the most active investor in SEA and Indonesia by various media. Moreover, East Ventures is the first venture capital firm in Indonesia to sign the Principles of Responsible Investment (PRI) supported by the United Nations (UN). East Ventures is committed to achieving sustainable development and bringing positive impacts to society through its initiatives and ESG-embedded practices.
About Accion Venture Lab
Accion Venture Lab is a leading early-stage impact investor in inclusive fintech startups, focused on affordable, well-designed financial services that enable economic growth and prosperity for underserved populations in the world. It has invested in more than 65 early-stage startups operating in more than 35 countries, focusing on the most innovative models and technologies delivering quality financial services to underserved households and small businesses with the potential to scale.
Accion Venture Lab is a part of Accion, a global non-profit committed to creating a financially inclusive world, with a trailblazing legacy in microfinance and fintech impact investing. Since 1961, Accion has increased access to inclusive financial services for tens of millions of people through its work with more than 200 partners in 63 countries. For more information, visit accion.org/venturelab.
For more information, please contact:
Hawila Septiana Saragih, Marketing Communications Bababos
M: +62 812 6914 7778 | E: email@example.com
Pheseline Felim, Head of Media and Marketing East Ventures