Sirclo Acquires Warung Pintar and Forms Company Group
Sirclo, an e-commerce enabler company, announced the acquisition of Warung Pintar. Warung Pintar will be part of the Sirclo Group. They will jointly present a comprehensive omnichannel solution for principals, brands, distributors, business actors, to end consumers.
This move marks Sirclo’s second corporate action after acquiring Orami in April 2021. This acquisition places Brian Marshal as CEO of Sirclo Group and Agung Bezharie (Co-founder and CEO of Warung Pintar) will lead Sirclo’s new business pillar, namely the ‘New Retail’ service.
In addition, Danang Cahyono (COO of Sirclo) will lead the business pillar of ‘Enterprise Solutions’ and Ferry Tenka (CEO of Orami) will lead the business pillar of ‘Entrepreneur Solutions’.
This job categorization also provides a clear picture of the pillars of the Sirclo Group solution. They are solutions for Enterprise, Entrepreneur, and MSMEs. As well as New Retail business models such as stalls.
With this merger, Sirclo Group recorded: more than 150 thousand brands that have been served cumulatively; more than 500 thousand stall or grocery store owners; reach of more than 15 million end consumers; and more than 80 distribution points spread throughout Indonesia.
In an official statement, Sirclo Group Co-Founder & CEO Brian Marshal said, this acquisition was based on the similar mission of the two companies. To make it easier for all business actors in Indonesia to sell in various ways, from online to offline.
Strengthening the B2B2C Business Model
Utilizing reliability in terms of technology infrastructure and retail distribution network, Sirclo, and Warung Pintar strengthen their position by leveraging the potential of the B2B2C business model through an omnichannel commerce strategy that combines online and offline sales channels in a balanced way.
He continued, after more than eight years of working in the B2B business model for enterprise-scale brands and entrepreneurs, Sirclo realized that the retail ecosystem did not escape the role of warungs and grocery stores as an option to fulfill the daily needs of Indonesian people.
“The importance of product availability, efficiency of distribution channels, easy access for brands to reach partners to end-consumers, as well as the potential of warungs for the economic sector in general, encourage us to focus on the B2B2C business model by collaborating with Warung Pintar in our ecosystem,” he said, Wednesday (26/1).
In the New Retail pillar, Sirclo will focus on empowering stalls through a variety of digital products and services to increase transparency and efficiency in distribution channels, access to national distributors, capital loans and product availability.
Meanwhile, through the Enterprise pillar, Sirclo provides end-to-end technology services that can be customized for principals or big brands.
The Entrepreneur business pillar provides Software-as-a-Service (SaaS)-based services, including the provision of ready-to-use online stores for MSME-scale businesses.
Sirclo’s Strategic Steps
Sirclo Group will also expand the reach of the fulfillment center for principals or big brands, so that end consumers can get more benefits in terms of logistics and price.
Development is also carried out from an end-to-end operational perspective by prioritizing an omnichannel commerce strategy so that brands of various scales can focus on product development.
The company sees that this strategic step will add strategic value to accelerate the development of Warung Pintar’s products and services.
Warung Pintar Co-Founder & CEO Agung Bezharie said, “In the future, we want to open up more opportunities and bring greater transparency and efficiency to every MSME actor, so that warungs can recover from the impact of the pandemic and grow together.”
This synergy can accommodate brands to increase their visibility into stalls as the largest distribution channel in Indonesia, so that principals or brands are able to reach more end consumers, according to Agung.
He also believes that this strategic step marks a great opportunity to have a wider impact on the retail ecosystem. Even the economic sector in Indonesia in general, especially in order to prepare for changes that are constantly occurring.