Enterprise e-procurement site Mbiz, which is backed by Indonesia’s Lippo Group conglomerate, launched a new marketplace that combines B2B commerce and e-procurement solutions but targets Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. It’s called Mbizmarket.
Mbiz is e-procurement platform that aims to simplify traditional procurement supply chains, in order to improve business’ productivity and provide visibility into everyday transactions.
Mbiz targets mostly large private and state-owned enterprises and offers them features like budget control, expense and payment reporting, while also letting them purchase goods or services from other companies on the same platform. These could be things like office supplies, which are needed often and in large quantities, for example.
But not all companies can implement end-to-end e-procurement solutions because digital development is expensive, said Mbiz CEO Rizal Paramarta at the launch of Mbizmarket in Jakarta on Tuesday, according to local media.
Like its parent Mbiz, Mbizmarket is also equipped with business features such as budget control, spending reports, and analytics tools. Beyond that, the platform also provides financing services in collaboration with commercial banks, financial institutions, and P2P lending platforms.
Mbiz has around 3.5 million on its platform but only 100 of them are SME, according to Paramarta. The company expects to increase the number of its MSME partners via Mbizmarket and opens them a channel o become suppliers for larger enterprises at the Mbiz platform. Mbizmarket is currently free, but it will charge commissions in the future, as each business grows.
A comparable e-procurement site in Indonesia is Bizzy that was founded in 2015 and is backed through the venture fund of another Indonesian conglomerate, Sinar Mas. Although it’s not specifically targeting MSMEs, Bizzy also offers comprehensive e-procurement features to increase business productivity. It closed a USD 8 million Pre-Series B financing round in 2018. Mbiz hasn’t disclosed its funding situation.
Editor: Nadine Freischlad