Baskit, a company that seeks to digitise and advance the distribution business within Indonesia’s supply chain, on Tuesday announced a $3.3-million seed funding round just months after its $1.5 million pre-seed round in March.
The latest round was joined by Betatron Venture Group, Forge Ventures, Investible, 1982 Ventures, DS/X Ventures, Orvel Ventures, and Michael Sampoerna. While the statement did not mention the affiliations of Sampoerna, he is the CEO of Sampoerna Strategic and the youngest son of Putera Sampoerna, an Indonesian cigarette mogul.
The funding will be used to expedite the company’s expansion plans, further develop its technology stack, and extend the number of supply-chain verticals it covers, the company said in a statement.
In a separate conversation with DealStreetAsia, Yann Schuermans, CEO of Baskit, said the company has been dominating in Bandung, West Java, and it wants to “copy-paste” its hyperlocal playbook to Jakarta and its surrounding area as well as East Java.
“Step one will be some expansion. Step two is we are realising that there are some really important partnerships that we can have with some of the largest brands in the country. And for that, we need to have some resources set aside for specialised manpower … And then I would say closer to 40% of the funds will go towards R&D,” Schuermans said.
In its operations, Baskit touched a lot of data which are valuable for large companies. Schuermans said the company has yet to monetise it but it seeks to be able to do so.
Schuermans said trade and industry — which depend on the network of over 200,000 traditional distribution businesses — are commanding more than half of Indonesia’s GDP.
“These businesses serve as the vital link connecting people with a diverse range of products, from everyday essentials like biscuits to construction materials like cement,” he said.
“While there may be a popular inclination to displace these intermediaries, it is not a sustainable approach considering their invaluable infrastructure and relationships. We firmly believe that by supporting them, we can unlock substantial long-term economic benefits for all stakeholders involved.”
Founded in November 2022, Baskit came to Indonesia’s often ineffective traditional distribution chains filled with middle layers that lack data visibility. The B2B commerce company seeks to strengthen distributors and wholesalers with commercial support and technology.
According to its website, Baskit offers a range of services from managing the salesforce and sourcing goods from principals to financing businesses.
Baskit’s back-to-back funding comes at a time when some B2B players have been forced to reduce their headcount or shut shop. However, some venture capitalists said they are still exploring deals in this space due to its highly fragmented nature.
Schuermans said Baskit should be able to turn a profit by the end of 2024 on the back of its asset-light concept which makes it different from other businesses in the space.
“Betatron and Baskit both carry the contrarian view that many traditional players in Asia, like wholesalers and distributors, are deeply embedded within their industries. Tomorrow’s winners find ways to work with rather than against them,” Arshad Chowdhury, the managing partner at Betatron Venture Group, said.