Indonesian manufacturing raw material procurement platform Bababos has secured $3 million in seed funding that was led by East Ventures.
Bababos said in a statement on Tuesday that the round also saw the participation from Patamar Capital and Accion Venture Lab.
According to the statement, this new funding was completed six months after the pre-seed funding in March 2023.
The fresh funds 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.
“We are optimistic about the market potential as we witness a significant demand increase from SME manufacturers until the end of the third quarter,
“We aspire to sharpen our partnership strategy with suppliers with the aim of providing the highest quality raw material at the best prices,” Bababos Co-Founder and Chief Executive Officer of Fajar Adiwidodo said.
Launched in 2022, Bababos is committed to transform the fragmented raw material supply chain in Indonesia.
Small and medium-sized enterprise (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.
According to the statement, technology plays a big role in enhancing Bababos competitive edge.
The platform is integrating the modern approach into the traditional industry by digitizing 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 optimize 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.
“Bababos 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 two to three folds.
In its mission to revolutionize the supply chain by providing equitable access for the manufacturing industry, Bababos aims to reach 1,000 SME manufacturers by the end of 2023.
Founded in 2009, East Ventures is a venture capital firm 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.
Indonesian raw material procurement startup Bababos secures pre-seed funding led by East Ventures