Dagangan Announces 95 Billion Rupiah Pre-Series B Funding

Startups social commerce Dagangan announced the acquisition of pre-series B funding of $6,6 million (over 95 billion Rupiah) led by BPTN Syariah Ventura. Other investors, such as Monk's Hill Ventures and Hendra Kwik (Payfazz) participated in this round.

This investment marks the first debut BPTN Syariah Venture after it was officially announced to operate which coincided today (3/6).

Dagangan will use the fresh funds to continue business expansion, improve team capabilities, and product development. Dagangan will also cooperate with other financial institutions to develop financial services.

In an official statement, Co-founder & CEO of Trade 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 gives us access to their ecosystem, thus giving us the opportunity to expand our business, including providing opportunities for users to get access and the best financial services.”

Trading is a platform social commerce which provides a variety of household needs, from basic necessities, fresh/frozen food ingredients, to fashion products, with same-day and next-day delivery services. The business model used is to shop directly through the Merchant platform, reseller, and third parties working with the company.

This Yogyakarta-based startup uses the model hub-and-spoke in its operations. In a sense, building a center for the procurement of basic needs or micro fulfillment center (hub) to second- and third-tier cities and the countryside. 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 a retail company and E-commerce The largest integrated network in Indonesia, which is able to reach 90 tier 3-4 villages and cities, where 80% of the total Indonesian population lives,” added Wilson Yanaprasetya, Co-founder & President of Dagangan.

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 technology for our products. Currently, every transaction in the Dagangan application is able to provide a growing profit, which is rarely the case for a new startup.”

After receiving series A pendanaan funding amounting to $ 11,5 million in September 2021, claimed by Dagangan, who managed to print business growth up to five times. Currently, Trade has more than 40 hub scattered in various areas in Yogyakarta, Central Java, and West Java. Dagangan's products and services have reached almost 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 and 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 has 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 wrote in its announcement.

This formation is a step by 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.