Warung Pintar acquires B2B logistic startup Bizzy Digital for US$45m

WARUNG Pintar, a startup which helps Indonesia's street vendors digitise, on Wednesday said it has acquired logistics startup Bizzy Digital for US$45 million.

The acquisition will enable the companies to explore "synergies" from opposite ends of the supply chain, in an attempt to digitise Indonesia's fragmented B2B (business-to-business) logistics market.

Warung Pintar, which roughly means "smart kiosk", develops digitally-friendly kiosks for street vendors - to include features such as Wi-fi, a digital point-of-sale machine, and closed-circuit television.

Bizzy Digital is a B2B e-commerce platform that connects retailers with owners of FMCG (fast-moving consumer goods) brands.

Willson Cuaca, co-founder of East Ventures (an investor in both companies), said that the two companies have strong synergies and efficiencies: Warung Pintar comes from a demand-side platform and Bizzy Digital comes from a supply-side one.

"Combined, they will be able to serve both consumers, retailers and brands in the most effective way. It is really 'one plus one equals three'," he said.

A NEWSLETTER FOR YOU

Monday, 3.30 pm

Garage

The hottest news on all things startup and tech to kickstart your week.

Sign Up

Bizzy Digital will maintain its entity post-transaction, said the statement, which added that the entity will focus on bringing deeper collaboration with brands and distributors.

Agung Bezharie, co-founder and chief executive of Warung Pintar, said that the company hopes to change the digital distribution approach on the ground through this acquisition.

"(The digital distribution approach) is historically heavily driven by promotions and discounts as a customer-acquisition strategy, which is deeply opposed by many of our FMCG partners.

"Having Bizzy Digital as part of the bigger Warung Pintar ecosystem will enable us to guarantee product reliability, availability and fair pricing by working hand-in-hand with the brands' distributors," he said.

Andrew Mawikere, chief executive of Bizzy Digital, agreed, saying: "This combination will enable us to serve brands and distributors with unprecedented value-added, data-driven strategy at scale."