Dagangan Discloses Pre Series B Funding Worth of 95 Billion Rupiah

Dagangan social commerce announced pre-series B funding of $6.6 million (over 95 billion Rupiah) led by BPTN Syariah Ventura. Other investors participated in this round, including Monk's Hill Ventures and Hendra Kwik (Payfazz) participated.

This investment also marks BPTN Syariah Ventura's debut after officially announcing its business today (3/6).

Dagangan will use the fresh capital to continue business expansion, increase team capabilities, and product development. Dagangan will soon to collaborate with other financial institutions in developing financial services.

In an official statement, Dagangan's Co-founder & CEO, Ryan Manafe breaks down the team's aspirations for the community in remote areas to lift up the economy in the village significantly. "This funding led by BTPN Syariah Ventura is not just an investment, it is the beginning of a joint effort to strengthen an inclusive digital ecosystem for Indonesian people in the future."

He continued, “We have partnered with BTPN Syariah since 2020 and held the same passion for improving the living standards of Indonesian people in remote areas. Through this funding, BPTN Syariah Ventura provides us access to its ecosystem, hence giving us the opportunity to expand our business, including opportunities for users to gain access and the best financial services.”

Dagangan is a social commerce platform that provides a variety of household needs, ranging from basic necessities, fresh/frozen food ingredients, and fashion products, with same-day and next-day delivery services. The business model used is direct shopping through the Dagangan platform, resellers, and third parties who work with the company.

The Yogyakarta-based startup uses a hub-and-spoke model in its operations. In a sense, building a basic needs procurement center or micro fulfillment center (hub) for second-and third-tier cities, also rural areas. It is resulting in the logistics costs become more efficient. Consumers also have easier access to goods, large producers are also able to reach areas that were previously difficult to reach due to logistical limitations.

"Our main goal is to build the largest integrated retail and e-commerce company in Indonesia that is able to reach 90,000 tier 3-4 villages and cities, where 80% of the total Indonesian population lives," added Dagangan Wilson Co-founder & President. Yanaprasetya.

Source: Dagangan

He also said, “Therefore, we are very focused on mapping the right business by creating an efficient organization, creating consistent growth, accompanied by the development of innovative technologies for our products. Currently, every transaction on the Dagangan application is able to provide a growing profit, which is rarely happen to the new startups.”

After obtaining series A funding of $11.5 million in September 2021, Dagangan is said to succeed in scoring business growth of up to five times. Currently, the company has over 40 hubs spread across various areas in Yogyakarta, Central Java, and West Java. Dagangan's products and services have reached nearly 15,000 villages in 40 cities/districts.

BTPN Syariah Ventura

On a separate occasion, this strategic act marked the debut of BPTN Syariah Ventura obtaining Rp300 billion in capital from BPTN Syariah. In a disclosure on the Indonesia Stock Exchange, this venture has an authorized capital of Rp500 billion.

As the core capital authorized, issued and paid-up by the subsidiaries, the composition of BPTN Syariah Ventura becomes Bank BPTN Syariah with a total of 2.97 billion shares with a nominal value of Rp297 billion or 99% of the total issued/paid-up shares in the subsidiary.

Moreover, Bank BTPN has as many as 30 million shares with a nominal value of Rp3 billion or 1% of the total issued/paid-up shares in the subsidiary.

"Referring to the copy of the Decree of the Member of the Board of Commissioners of the Financial Services Authority Number KEP-23/D.05/2022 dated May 20, 2022, which was received by the Company on May 30, 2022 regarding the Granting of a Sharia Venture Capital Company Business License to PT BTPN Syariah Ventura, then The Company's subsidiaries have effectively run their business as a sharia venture capital company," the management stated in the announcement.

This formation is a strategic move from BPTN Syariah to chip in to the digital banking competition. One way is to support business activities and create a digital ecosystem for the segments it serves.

–Original article is in Indonesian, translated by Kristin Siagian