Small and medium businesses contribute 60% of Indonesia’s gross domestic product. But companies in the D2C space are still struggling to compete against bigger brands. Praktis he wants to put them on a more level playing field.
The startup, which handles everything from raw material purchasing to order fulfillment for D2C brands and suppliers, announced today that it has raised $20 million in Series A funding. The round was led by East Ventures (a growth fund ), with the participation of Triputra Group and SMDV.
Praktis co-founder and CEO Adrian Gilrandy told TechCrunch that although 60% of Indonesia’s GDP comes from SMEs, many are experiencing difficulties scaling up their business operations. These include finding reliable suppliers, getting fair prices, the cost of labor, and high exposure to fixed costs.
praktis team
Through its platform, Praktis clients can manage these business operations, including raw material purchases, production, fulfillment, and logistics. Gilrandy said Praktis also adds purchasing and processing for economies of scale. This leaves D2C brands free to focus on other parts of their business, including branding and marketing.
The startup plans to grow by growing alongside the D2C brands it serves. Gilrandy said that his ecosystem can be easily applied to other verticals; for example, she got her start in fashion before moving into the beauty industry. Praktis claimed 12x year-over-year growth from 2020 to 2021, as the COVID-19 pandemic accelerated adoption of its services, and 4x year-over-year growth from 2021 to 2022.
Praktis will use its new funding to develop technology for both brands and suppliers, building their team and expanding their end-to-end supply chain ecosystem.
The startup also announced today that it has named Leonard Pontoh as its chief financial officer. Pontoh also joins its board of directors.
In a statement, East Ventures co-founder and managing partner Willson Cuaca said: “We are delighted to double our investment in Praktis as they strive to empower D2C brands in Indonesia and achieve profitability much faster than we expected.”
—————————————————-
Source link