New retail startup Warung Pintar has officially announced its acquisition of Bizzy, a B2B logistics and supply chain distribution startup. The acquisition value reached $45 million or around Rp633 billion.
Through this acquisition, Warung Pintar is to strengthen its position in the B2B e-commerce market and predicted to grow three times of the B2C market.
“[Acquisition] Bizzy as a whole, not just a particular business unit,” East Ventures’ Co-Founder & Managing Partner, Willson Cuaca said in a short message to DailySocial.
Previously, Bizzy was a B2B e-commerce platform that has pivoted into the logistics and distribution business. Bizzy Logistics is known as PT Bina Sinar Amity, an integrated logistics, export, and import service provider company. Meanwhile, Bizzy Distribution is legally under PT Sinarmas Distribution Nusantara.
Apart from being affiliated with the Sinarmas group, Bizzy is also a portfolio of East Ventures. Sinarmas, through its venture capital unit, SMDV, is also a part of EV Growth.
Ready for the momentum of B2B e-commerce
Quoting various data sources, the current B2B e-commerce revenue in Indonesia accounts for less than half of the total e-commerce revenue in 2020. As an illustration, B2B e-commerce revenue in India contributes 93% of total e-commerce revenue there and 72% in China.
Warung Pintar’s Co-Founder & CEO, Agung Bezharie said that the two companies are to realize the same mission, transforming traditional retailers, and increasing their efficiency in the supply chain, which is considered fragmented with two different approaches.
Therefore, Agung expects to change the digital-based distribution approach which has mostly been driven by massive promotions and discounts in order to acquire customers.
“Bizzy’s joining the Warung Pintar ecosystem allows the company to guarantee product availability and reasonable prices with its partners,” Agung said in a press release received by DailySocial.
Furthermore, Bizzy’s CEO, Andrew Mawikere added that after the acquisition, Bizzy will remain an entity that will focus on bridging the synergy between the two companies with brands and distributors and enabling them to become a digital retail ecosystem.
This means as the synergy established, Warung Pintar can focus more on digitizing its retailers, while Bizzy focuses on serving brand partners and distributors.
“After Bizzy’s entry as part of Warung Pintar, there will be no other players integrated into our supply chain. That way, we can serve brands and distributors with various added value and data-based strategies on a large scale,” Andrew said.
Was founded in 2017, Warung Pintar offers solutions to micro-entrepreneurs’ problems that have been the foundation of the Indonesian economy with a 70% contribution to total retail transactions in Indonesia. Meanwhile, this acquisition will combine two companies that have collaborated with 600 brands and serve 230 thousand retailers in 65 cities throughout Indonesia.
Willson also sees opportunities for synergy and efficiency that will be created by joining the two companies. “Warung Pintar is an on-demand platform, while Bizzy comes from the supply side. Combined, they can serve consumers, retailers, and brands in the most effective way. This is a real 1 + 1 = 3,” he said in an official statement.
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Original article is in Indonesian, translated by Kristin Siagian
