JAKARTA (TheInsiderStories) – Two Indonesian startups, Advotics and Dropezy, secured funding from their investors. The SaaS startup specializing in data-driven supply chain solutions for brands and small medium enterprises (SMEs) has raised US$2.75 million in a new funding round led by East Ventures and the first recurring-based micro-delivery service for groceries, get pre-seed funding from Taurus Ventures, Kopi Kenangan Fund, also angel investors, including Ankiti Bose.
Indonesia is a huge market for enterprise solutions. Advotics estimated that the country’ enterprise software market size has reached $3 billion and expects this number to keep growing as more companies move towards digitalization.
“There are millions of manufacturing and distribution companies from small, medium, to big corporations operating in Indonesia,” said Boris Sanjaya, CEO and co-founder of Advotics in an official statement released today.
Currently, the company has 9 SaaS products that provide solutions across production, warehousing, and distribution. The company also expanded its system by including solutions for inventory, routing, and collection.
With the new funding, Advotics seeks to extend its footprint into the SMEs market by providing a one-stop integrated online-to-offline system. The fresh capital also will help the startup expand its sales team.
“We are confident that the funding will accelerate Advotics to achieve its mission to digitize Indonesia’s distribution and supply chain ecosystem,” said Willson Cuaca, co-founder and managing partner of East Ventures.
Realizing that during the pandemic, the majority of Indonesians prefer to shop for daily necessities and groceries online from home, Dropezy offers micro-quantity grocery delivery that allows consumers to order anything they need, with more affordable shipping costs. The startup went into full operations since late 2019 and has been growing in an upward trend every month.
“Dropezy wants to automate and simplify the shopping routine, by becoming the first recurring-based e-grocery in the country and a one-stop shop, not only for fresh produce, but also non-perishable items,” said Chandni Chainani, co-founder of the provider.
She adds, with the undisclosed amount, the priority actions would further propel the company and position Dropezy as the reliable shopping partner that could help busy customers to fulfill their household needs more safely and more efficiently during the pandemic.
“We believe Dropezy has identified a significant need in the Indonesian household. The shift around purchasing behavior, especially with busier young families, makes this a very compelling opportunity,” Hemant Bhardwaj from Taurus Ventures stated.
Unlike other e-grocery players, Dropezy chose to focus on the next-day delivery services, which allowed the company sufficient time to source the requested items at the cheapest price and ensure that all customers’ orders are complete. Since last year, the startup has been developing a new avenue of private labeling to generate higher profit margin and provide customers with the best prices on daily products.
“The best startup ideas are those that are solving real world problems, and we definitely see the customer-focused mentality from Nitesh and Chandni,” added Edward Tirtanata, CEO of Kopi Kenangan.
According to Digital Indonesia 2021, there are over 202.6 million internet users in Indonesia, equating to 73.7 percent of the national population. The digital transformation in Indonesia has opened up a whole new way of living and working, helping consumers and businesses become more efficient and productive.
While, research firm IGD reported, the grocery delivery sector in Indonesia has a huge potential. It is expected to record an annual growth of up to 80 percent by 2022. With this positive trend, Dropezy aims to scale up the company’s business in 2021, by offering more products on the platform, more delivery time slots, and expanding to other areas of operations. The pipeline also includes a plan to introduce Pay Later feature to by its customers.
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