Tjufoo and Sinbad are currently completing their merger

Startups brand aggregators Tjufoo is currently finalizing the merger with B2B commerce Sinbad. This news was first published by Deal Street Asia. To DailySocial.id, Founder & CEO Tjufoo TJ Tham confirmed this corporate action. After agreeing to consolidate, the team is currently working to finalize this agreement. It is targeted that the merger process will be completed in June 2024.

For TJ, his party was very lucky to find and be able to partner with Sinbad, because there are many business synergies that the two can pursue to generate greater business potential.

It is known that Sinbad has service capabilities supply chain leaders to distribute products from brand principal to more than 4400 stores in more than 1000 districts/cities in Indonesia. Meanwhile, Tjufo's focus is to incubate and produce consumer products that are marketed to various groups. So that the two business models can be integrated well.

Regarding whether the two companies will merge or remain separate entities in the future, TJ said that executives from both companies are currently thinking about this. Sooner or later --after fundraising finished-- the decision will be taken soon.

Tjufoo is currently finalizing funding

Since the beginning of the year, Tjufoo has been reportedly raising new funding. According to data reported to the regulator, as quoted by Alternative.pe, there are a number of investors who have entered this new round, one of which is Binus Investama, PT Tri Mulia Agung, and a number of angel investors. Previously the company had also received initial funding from TNB Aura.

Previously, in mid-2023, Tjufoo claimed to have achieved profitability with efficient operations. As "house of brands", they take extra selective steps in acquiring brand, to ensure that each target can get business optimization. Currently there are 6 business brands under management, including ACMIC, Granova, Cypruz, Dew It, Muscle First, and Dapur Cokelat.

This consolidation can also be seen as a positive step. The reason is industrially, lineally brand aggregators is experiencing significant challenges. A number of players have been affected, including one of the biggest, namely Thrasio. Last year, their rival Hypefast also just implemented efficiency by laying off 30% of employees in order to achieve profitability targets.

A glimpse of Sinbad

Sinbad was founded in 2018 by Emilio Wibisono and Jabert Hachchouch with a mission to simplify the supply chain in trade and procurement processes in Indonesia. It is claimed that product orders via Sinbad will be directly connected to the main distributor at the lowest rates on the market, with FMCG as the main category.

At the end of 2022, Sinbad was reported to be raising money series A pendanaan funding. According to data from the regulator, Centauri Fund from MDI Ventures led this round followed by Genesia Ventures, Central Capital Ventura, and a number of investors.