Dagangan, an Indonesian rural e-commerce startup, announced that it has successfully closed US$6.6 million in its Pre-Series B round led by Sumitomo Mitsui Banking Corporation (SMBC) subsidiary, BTPN Syariah Ventura.
Existing investor Monk’s Hill Ventures and Hendra Kwik, CEO of Payfazz, a leading financial services company serving SMEs and unbanked Indonesians, also participated in the funding round.
The funds from this strategic investment will be used by Dagangan to expand into new markets and improve the capabilities of their product and technology development team. Dagangan will also work with financial institutions in banking and fintech to develop new financial services.
Dagangan is an e-commerce platform that provides same-day and next-day delivery for a wide variety of household needs, including basic necessities, fresh and frozen food, apparel and more. Their customers are able to conveniently purchase items from multiple channels – from Dagangan’s white-label products, to items offered by their resellers and third-party partners – all in one place.
“We aspire to serve more communities in remote areas, and spearhead further growth in Indonesia’s rural economy. The funding from BTPN Syariah Ventura is more than just an investment, but the beginning of a close partnership to build an inclusive digital ecosystem for all Indonesians,” shared Ryan Manafe, CEO and Co-founder of Dagangan.
“They share the same enthusiasm as our team towards improving the lives of people in rural and suburban areas, and have demonstrated a proven track record of growing local micro, small, medium enterprises in rural Indonesia,” he added.
Based in Yogyakarta, Dagangan implements a hub-and-spoke model in its business operations. The company has micro-fulfillment centers (hub) in tier 3-4 cities and rural areas to reduce logistics costs, making it efficient and affordable for their customers to access daily necessities, while enabling large producers to reach new markets that were previously difficult due to logistical challenges