Manufacturing raw material procurement platform, Bababos, has secured US$3 million in seed funding. The round was led by East Ventures, with the participation from Patamar Capital and Accion Venture Lab. This new funding was completed six months after the pre-seed funding in March 2023.
The fresh funds will be allocated to accelerate business expansion – which is currently available in the Greater Jakarta and Surabaya areas – with the focus on bolstering its technology stack and leveraging resources to build a seamless platform connecting small and medium enterprises (SME) manufacturers with the best raw material suppliers.
Co-Founder & CEO of Bababos, Fajar Adiwidodo stated, “We truly appreciate the support and trust that we received from investors through this round of funding. We are optimistic about the market potential as we witness a significant demand increase from SME manufacturers until the end of Q3. We aspire to sharpen our partnership strategy with suppliers with the aim of providing the highest quality raw material at the best prices.”
Launched in 2022, Bababos is committed to transform the fragmented raw material supply chain in Indonesia. SME manufacturers are facing several challenges such as limited access to high-quality raw materials, less transparent pricing, and limited financial support for working capital. Conversely, raw material suppliers tend to undergo deadlock concerning stock inventory plans due to scattered demand.
To resolve these complex challenges, Bababos offers three main solutions, including: the supply of manufacturing raw materials, demand aggregation and flexible payment terms. These solutions are aimed to boost efficiency for SME manufacturers in procuring various raw materials, ranging from steel, polymers, and chemicals.
Technology plays a big role in enhancing Bababos competitive edge. The platform is integrating the modern approach into the traditional industry by digitising all of the procurement processes and leveraging big data to accurately cluster demands based on the raw material and geographical needs. It has enabled fast and timely delivery from suppliers to customers, providing a seamless experience as well as cost efficiency. To further optimize the platform, Bababos is currently developing a new feature in the form of a web application that allows SME manufacturers to process their transactions online.
“We are glad to experience the positive development of Bababos, and we are thrilled to continue our support in Bababos. Their tech-based innovative approach in the highly conventional and fragmented industry has been essential. This funding round has again signified our belief in Bababos. We look forward to witnessing the further growth and positive impacts that Bababos brings to the industry,” said Melisa Irene, Partner at East Ventures.
Since its launch, Bababos has experienced remarkable growth and reached more than 400 SME manufacturers. They have experienced positive impact after joining Bababos ecosystem, where the majority are experiencing the business growth by 2-3 fold. In its mission to revolutionise the supply chain by providing equitable access for the manufacturing industry, Bababos aims to reach 1,000 SME manufacturers by the end of 2023.