Since its establishment, Baskit claimed the company had evolved up to 70% monthly and worked with more than 50 wholesalers, specifically in West Java.
Heaptalk, Jakarta — Indonesia-based supply chain startup, Baskit, announced has completed its new investment in a Seed round at US$3.3 million, or equal to Rp49.4 billion. This round has involved multiple regional and local investors, spanning Betatron Venture Group, Forge Ventures Investible, 1982 Ventures, DS/X Ventures, Orvel Ventures, Michael Sampoerna, and other angel investors.
Following the previous Pre-Seed round, obtained three months earlier at US$1.5 million, Baskit will utilize this fresh injection to focus on business lines expansion, technology stack enhancement, and human resources reinforcement to penetrate new supply chain verticals.
“Baskit is steadfast in its commitment to empowering the over 200,000 traditional distribution businesses that form the backbone of more than half of Indonesia’s GDP. By supporting these intermediaries, we intend to unlock significant long-term economic benefits for all stakeholders in the supply chain,” The Chief Executive Officer, Baskit, Yann Schuermans, said.
According to the CEO, supply chains are fundamental to every major economy in Southeast Asia, as approximately 40% to 50% of their GDP is dependent on supply chains, which eventually makes them modernize and digitize. Moreover, the leading brand distributors dominate the top of the supply chain. Still, toward the bottom, there are thousands of middlemen, including wholesalers, who are the ones creating relationships with retailers. Thus, this startup continues to amplify its business core by digitizing the distribution process in the supply chain sector in the country.
Becoming one of the investors in this startup, Partner of Forge Ventures, Tiang Lim Foo, affirmed, “Baskit’s relentless pursuit of enabling the supply chain industry with technology aligns with our investment thesis. We are impressed by the team’s dedication and are honored to support them in their mission,”
The strategic approach of Baskit to aid Indonesia’s Middleman
Baskit currently works with more than 50 wholesalers, predominantly in West Java. Yann noted that supply chains in emerging markets are fragmented, specifically in Indonesia, which has a complicated geography with thousands of islands. As a result, a supply chain is not as simple as getting goods from point A to point B. He considered the middleman necessary because supply chains begin with a manufacturer and distributors, then the smaller distributors and wholesalers who sell to resellers.
Instead of striving to cut out the role of middleman from the supply chain, Baskit provides them with several tools to elevate their businesses, including software that helps them digitize their operations and brings investors online.
Through this software, Indonesia‘s middleman can set up their warehouses and inventory, giving them visibility into pricing and missing aging goods. On the other hand, the inventory process is also connected to an ordering system, simplifying the customer who was previously purchasing goods offline can do an online through a catalog.
In its official establishment in November 2022, Yann claimed the company had evolved up to 70% monthly. This growth reflects a real market need to strengthen the operations of distributors and wholesalers, who are now facing increasing competitive and fiscal pressures post-pandemic, such as high-tech levels with limited access, thinning margins with an operating expenses growth due to inflation, and declining sales due to weakening specific industry.
Managing Partner of Betatron Venture Group, Arshad Chowdhury, voiced that Baskit companies and startups have contrarian views regarding the role of traditional business people in Asia, as wholesalers and distributors have been linked in the industry.
He added, “Tomorrow’s winners find ways to work with rather than against them,”
