Dagangan Announces 95 Billion Rupiah Pre-Series B Funding
Social commerce startup Dagangan announced the acquisition of pre-series B funding of $6.6 million (over 95 billion Rupiah) led by BPTN Syariah Ventura. In this round, other investors, such as Monk’s Hill Ventures and Hendra Kwik (Payfazz) participated.
This investment marks the first debut of BPTN Syariah Ventura after it was officially announced to operate which coincided today (3/6).
Dagangan will use the fresh funds to continue business expansion, increase team capabilities, and product development. Dagangan will also cooperate with other financial institutions to develop financial services.
In an official statement, Dagangan Co-founder & CEO Ryan Manafe explained that his party has aspirations to be able to serve the community to remote areas, so that the economy in the village can grow 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 the people of Indonesia in the future.”
He continued, “We have partnered with BTPN Syariah since 2020 and we see the same passion in improving the living standards of Indonesian people in remote areas.”
Through this funding, BPTN Syariah Ventura provides companies with access to their ecosystem, thereby providing opportunities to expand their business, including providing opportunities for users to gain access and the best financial services.
Trading Business Model
Dagangan is a social commerce platform that provides a variety of household needs, ranging from basic necessities, fresh/frozen food ingredients, to 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. This 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 and rural areas. As a result, 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.
He continued, “Therefore, we are very focused on mapping the right business by creating an efficient organization, creating consistent growth, and of course accompanied by the development of innovative technologies for our products.”
Currently, every transaction in the Dagangan application is able to provide a growing profit, which is rarely the case for new startups.
After receiving series A funding of $11.5 million in September 2021, it is claimed that Dagangan has succeeded in scoring business growth of up to five times.
Currently, Dagangan has more than 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.
BPTN Syariah Venture
Separately, marking the start of the operation of BPTN Syariah Ventura, it obtained an issued capital of Rp. 300 billion from BPTN Syariah. In a disclosure on the Indonesia Stock Exchange, this venture entity has an authorized capital of Rp500 billion.
With the effective addition of the authorized capital as well as the issued and paid-up capital of 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.
Then, Bank BTPN 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.
This formation is a step of BPTN Syariah in the fight in digital banking. One way is to support business activities and create a digital ecosystem for the segments they serve.