Looking for Funding, Mbiz Optimistic to Make Profit Next Year
Mbiz e-procurement startup will raise series B funding of US $ 20 million or around IDR 274 billion this year. With these fresh funds, MBiz is targeting to make a profit next year.
Mbiz CEO Rizal Paramarta is optimistic that he will get a profit because the injection of funds will be used to develop platforms and company teams.
“Our path to profitability is also very clear. My prediction, with our historical, at the end of 2021 we have been positive profit,” Rizal said in a press conference in Jakarta, Thursday (20/2).
He continued, the company had discussed with several local and foreign investors. So far, there is an investor from a Southeast Asian country that will be involved in the funding.
The series B fundraising was the last for MBiz. Previously, the company raised funding for the first time in 2017. Rizal said the company was quite efficient in using its funding. Moreover, they do not use the ‘burn money’ strategy for promotion or subsidies for their business.
The Company will Focus on MSMEs
After funding is complete, Rizal continued, the company will focus on working on its market potential in Indonesia. The company will focus on partnerships with micro and medium enterprises (MSMEs) to the government. From the collaboration, according to him, the company wants to expand its ecosystem.
The company will also develop services. One of them is with super-ecosystem services which will be integrated with the Mbiz platform. With this strategy, Rizal is optimistic that the sales value or gross merchandise value (GMV) of Mbiz can rise.
Last year, the company’s GMV quadrupled, the number of vendors quadrupled, and the number of customers tripled year on year (YoY). “This year’s target, we can achieve the same achievement from this achievement, which can increase 3 to 4 times,” Rizal said.
MBiz noted that the most e-procurement transactions in 2019 came from the Fast Moving Consumer Goods (FMCG) industry and returns by 50%, property and real-estate by 25, pharmaceuticals by 15%, and technology companies (startup) by 5%.
Mbiz Shares were Acquired by Investree Late Last Year
Investree acquired e-procurement startup stock, Mbiz. Through this corporate action, the financial technology company (fintech lending) is targeting to channel loans of IDR 270 billion to Micro, Small and Medium Enterprises (MSMEs) in the first quarter of 2020.
Investree co-founder and CEO, Adrian Gunadi, was reluctant to mention the value of the acquisition. “It’s quite significant,” he said during the inauguration of a strategic partnership in Jakarta, today (12/27).
As a strategic partner, Investree provides financing to buyers and vendors on the Mbiz platform. Mbiz is engaged in e-procurement business to business (BTOB), which provides goods and services for business needs.
As of last year, Mbiz hooked more than 350 companies as buyers and 3,400 vendors. The company launched Mbizmarket.co.id to facilitate consumers accessing various services and register as a vendor.
They Have Channeled a loan of IDR 90 Billion
Investree and Mbiz have tested financing services for 10 buyers and vendors. As a result, the fintech lending has channeled a loan of IDR 90 billion within a period of two months. Adrian is optimistic, cooperation with Mbiz is very potential for Investree.
“January 2020 we are ready to run fast. We are optimistic that we can triple that (Rp. 90 billion),” he said.
Mbiz CEO Rizal Paramarta added, there are 100 thousand product items (Stock Keeping Units / SKUs) on the platform. As of last year, Nett Merchandise Value (NMV) reached IDR 2 trillion, with an average purchase order of IDR 70 million.
He said, during the two-month trial of Investree services, NMV doubled. “Piloting in September and October,” Rizal said.