gudangada, an online B2B marketplace for fast-moving consumer goods (FMCG) in Indonesia, has secured “double-digit millions” in a seed funding round led by early-stage VC firms Alpha JWC Ventures and Wavemaker Partners.
Singapore’s private equity fund Pavilion Capital also participated in the round.
The money will be used to fuel the company’s continued business expansion, from expediting member onboarding, expanding service and solution offerings, to enhancing leadership and operational talents to accelerate growth.
This year, gudangada aims to broaden its member coverage across the FMCG value chain and integrate deeper into its existing supply chain networks.
Founded in late 2018 by Stevensang, gudangada facilitates bulk transactions between FMCG traders (buyers and sellers) and principals. Since its inception, gudangada claims to have onboarded thousands of distributors, wholesalers and retailers onto its platform and covered 500 cities. The firm also says it has completed thousands of transactions and facilitated hundreds of millions of cartons of FMCG goods movement.
The platform currently offers tens of thousands of SKUs ranging from F&B, personal care, cosmetics to cigarettes, and is broadening its product selection every week as new partners come on board.
The Jakarta-headquartered startup addresses the local FMCG market worth over US$50 billion in value, annual growth of eight per cent, a vast customer base and value chain from producers to small retailers.
“It’s a tough industry to break into. Many similar tech players have tried yet many have failed or are struggling now. We build our business based on our experience and deep understanding in the industry to see which are important for the FMCG players, their pain points that we can touch, and how to influence them the best. It’s also worth noting that in this industry, relationship and trust are the most vital factors, and we’re fortunate that our track record before this can provide that and bring us to where we are right now,” said Stevensang.
“On the surface, FMCG distribution might seem like an old industry that can be easily disrupted by technology startups. In reality, it is still largely offline and relationship-driven with habits that may not be so easy to change. We are excited to back gudangada which is guided by Stevensang’s insightful approach,” says Paul Santos, Managing Partner of Wavemaker Partners.
Stevensang is an industry expert with over 25-year experience in the Indonesian and Southeast Asian FMCG and retail scene. Prior to founding gudangada, Stevensang served as Chief of Sales & Distribution at one of Indonesia’s leading FMCG companies and previously as President Director of Indonesia’s largest distribution company.
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