Bababos, an Indonesian raw material procurement platform, has raised US$3 million in seed funding.

Indonesia-focused venture capital firm East Ventures led the round, with participation from Patamar Capital and Accion Venture Lab. This was six months after East Venture led the startup’s pre-seed funding in March, of which the amount was undisclosed.

The fresh funds will be used for business expansion in the Great Jakarta and Surabaya areas, with the focus on enhancing technological capabilities and optimising the platform, the company said on Tuesday (Sep 19).

Launched in 2022, Bababos aims to transform the “fragmented” raw material supply chain in Indonesia, by seamlessly connecting small and medium enterprises (SME) manufacturers with quality raw material suppliers.

Bababos is currently developing a new web application that allows SME manufacturers to process their transactions online.

Co-founder and chief executive of Bababos, Fajar Adiwidodo, highlighted the firm’s plan to improve supplier partnerships to provide cost-saving but high-quality raw materials.

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Adiwidodo also noted its growth potential: “We are optimistic about the market potential as we witnessed a significant demand increase from SME manufacturers until the end of Q3.” With more than 400 SME manufacturing clients reached, the firm plans to increase the number to 1,000 by the end of this year.