Bababos, Indonesia-based raw material procurement startup, secured pre-seed funding led by East Ventures
Bababos, Indonesia-based raw material procurement platform for small and medium enterprises (SME) manufacturers, announced the pre-seed funding led by East Ventures, the leading and pioneering sector-agnostic venture capital firm in Indonesia. The fresh fund will be primarily utilized to build a seamless platform that connects SME manufacturers to quality raw materials directly sourced from the best suppliers and producers. Bababos improves the supply chain for the SME manufacturers.
“We truly appreciate the support from East Ventures. We believe this funding will further support our mission of providing equitable supply chain access for SME manufacturers. We are certain that Bababos is here to serve as the one-stop procurement platform, working with a curated selection of the nation’s top suppliers to positively impact and bring advancement to Indonesia’s manufacturing industry,” said Fajar Adiwidodo, Co-Founder and Chief Executive Officer of Bababos
Bababos was co-founded by Fajar Adiwidodo (Chief Executive Officer), Sigit Aryo Tejo (Chief Operating Officer), and Hendrik Panca (Chief Financial Officer) in Q3 2022. These co-founders realized the highly fragmented raw materials supply chain in Indonesia posed challenges especially for SMEs. SME manufacturers often face limited access to quality raw materials, price opacity, and limited financial support for working capital. On the other end, suppliers struggle to plan inventory due to scattered demand.
Bababos solves this complex issue by aggregating raw materials demand from SME manufacturers, providing end-to-end supply chain solutions that creates significant value for both SME manufacturers and raw material suppliers. SME manufacturers instantly gain access to quality raw materials at competitive prices, while suppliers obtain access to more demand from manufacturers in Bababos’ platform, which eventually improve their production and inventory planning. Bababos also eliminates the need for SME manufacturers to manage multiple suppliers by offering a one-stop-shop solution for sourcing and procurement of a wide range of raw materials, ranging from steel and other metals to polymers and chemicals.
Bababos is integrating the modern approach into the traditional industry by digitizing all of the procurement processes and leveraging big data to accurately cluster demands based on the raw materials needs and geographical spreads. It has allowed fast and timely delivery from the suppliers to the customers, providing a seamless experience and cost savings benefits. As part of its commitment to further grow the industry, Bababos also offers flexible payment options that ease the financial burden on these SME manufacturers, allowing them to focus on producing high-quality products. All SME manufacturers can easily access the services of Bababos through its web app.
“Bababos is one of real testaments of tech-based solutions to the highly fragmented conventional industry. We believe Bababos and its solutions are opening up many opportunities for SMEs, the country’s economy backbone, in this high-potential industry. We are glad to welcome Bababos and looking forward to positive impacts brought by Fajar, Sigit, Hendrik, and team to SMEs in Indonesia,” said Melisa Irene, Partner at East Ventures.
Bababos has experienced remarkable growth since its launch, recording an average monthly revenue growth that exceeds 100%. Currently, Bababos is serving over 50 SME manufacturers, with some experiencing a 2-3 fold increase in business after partnering with Bababos.