Warung Pintar, the startup that is digitizing Indonesia’s small shops, on Wednesday announced that it has acquired B2B logistics platform Bizzy Digital for USD 45 million, according to a joint statement of the companies.
Co-founder and CEO Agung Bezharie said that the firm aims to leverage on Bizzy’s logistics technology and so complete the supply chain. “Having Bizzy Digital as part of the bigger Warung Pintar ecosystem will enable us to guarantee product reliability, availability, and fair pricing by working hand-in-hand with the brands’ distributors,” he said.
Indonesia’s B2B e-commerce market is expected to grow to at least three times the size of its B2C cousin. In 2020, B2B revenues accounted for less than half of total e-commerce revenues, according to research site Statista.
While Warung Pintar will continue to focus on retailer digitalization, Bizzy Digital will handle partner acquisition, relying on its established network. With a large trove of data, it provides brands visibility on awareness and public perception, product distribution efficiency, performance, and consumer demand.
The two companies currently work with around 600 brands, serve 230,000 retailers in 65 cities across Indonesia, and support nationwide networks of distributors. The larger shareholder base of the combined entity can also easier provide the necessary capital.
Founded in 2017, Warung Pintar is equipping roadside kiosks with an assortment of tech devices and services, including smart point-of-sale systems, free WiFi, bill payments, smartphone charging stations, and CCTV systems. This also marks the firm’s second acquisition after incorporating agritech platform Limakilo in March 2019.