The funding will help the company offer more MSME-focused financial products and services. Here are the top-line bullets you need to know.
BukuWarung, a fintech company, has raised $60M in a Series A round that drew participation from Valar Ventures, Goodwater Capital, and Quona Capital, among others.
HOW’S THE COMPANY PERFORMING?
- Indonesia-based BukuWarung is a micro, small, and medium enterprise (MSME)-focused accounting and digital payment application that offers financial products for lending, insurance, savings, and cash and credit transactions.
- The company reportedly has a portfolio of 6.5M registered merchants in 750 Indonesian cities. It also claims to have processed around $1.4B in annualized payments to date and plans to process payments worth over $10B by 2022.
- BukuWarung has a target market of more than 60M MSMEs. These businesses contribute 61% of Indonesia’s GDP and employ around 97% of the country’s workforce.
- The company’s workforce has increased 5x times in the last 6 months, bringing its employee count to 150.
WHY DOES THE MARKET MATTER?
- The fintech market is projected to grow at a CAGR of 23.41% to reach a value of $324B by 2026, according to Market Data Forecast.
- Global fintech adoption stands at 25% and provides enormous opportunities for growth to providers and first movers.
- The market has seen a boom in funding in recent years. In 2020, VCs invested over $42B in fintech companies.
- The Covid-19 pandemic drove the adoption of cashless transactions and increased demand for digital payment solutions and online payment gateways.