Heaptalk, Jakarta — Indonesian business-to-business (B2B) fintech startup Paper.id has seized an undisclosed Series B investment led by Square Peg. Other existing investors, including SMBC Asia Rising Fund and Argor Capital also back this funding round.
With this latest Series B investment, Paper.id will enhance and expand its solutions, further positioning itself as the go-to platform for business owners to manage and process their transactions efficiently.
Indonesia’s B2B payment sector is experiencing tremendous growth, and the country is fast adopting digital business payments. Furthermore, over 95% of B2B payments in the archipelago are already digital, compared to only 65% in the US.
Despite the rapid expansion of digital payments, several Indonesian businesses still use non-digital methods to manage their accounts and invoicing, making reconciliation messy and inefficient. This fintech startup also perceived that suppliers frequently provide physical invoices to buyers and need more working capital to scale their businesses.
“Businesses can manage tens, hundreds, or even thousands of payments every month. Imagine managing everything manually, from recording sales orders and creating invoices to processing payments. This will take hours and require a lot of manpower,” CEO of Paper.id, Yosia Sugialam, said.
How Paper.id simplifies the payment obstacles
Paper.id focuses on helping Indonesian businesses manage their accounts receivable and accounts payable through its invoicing and payment platform. The platform enables easy invoice creation, automatic reconciliation, and precise document matching. The services also unlock access to various payment methods, including credit card payments, offering extended terms for payers. The platform also possesses accounting and bookkeeping features.
As a result, this B2B fintech startup is used by more than half a million business owners across Indonesia. For instance, Kopi Kenangan uses Paper.id to manage over 4,000 monthly invoices from hundreds of suppliers. By integrating its platform to Kopi Kenangan’s existing system, this coffee chain can efficiently monitor supplies through a single, comprehensive platform, significantly reducing both costs and time.
In 2023, Paper.id also established an exclusive partnership with Peruri (the Indonesian Mint) to provide e-materai (electronic stamps). This is a significant step forward, as invoices over a certain amount require an official materai from the Indonesian Mint to be deemed valid. Paper.id also teamed up with Visa and Bank BRI on a strategic collaboration to launch Indonesia’s first premium business credit card.
Currently, the team is integrating automation through machine learning and artificial intelligence into their B2B Payment process to further enhance efficiency and security. Paper.id is also looking to extend its suite of offerings by enabling cross-border payments, complemented by robust business verification capabilities.
“We are excited by Paper.id’s ambitious vision to transform how businesses manage accounts, invoicing, and payment and look forward to supporting them on their next growth stage,” Square Peg’s representative affirmed.
