Warung Pintar Announces its Acquisition of Bizzy

Startups new retailSmart Shop officially announced its acquisition of Bizzy, logistics and distribution startup supply chain leaders B2B. The acquisition value reached $45 million or around Rp633 billion.

Through this acquisition, Warung Pintar wants to strengthen its position in the market E-commerce B2B with a growth that is predicted to reach three times that of the B2C market.

"[Acquisition] Bizzy as a whole, not just a specific business unit," said East Ventures Co-Founder & Managing Partner Willson Cuaca in a short message to DailySocial.

Previously Bizzy was a platform E-commerce B2B that has been pivot into a logistics and distribution business. Bizzy Logistics is known as PT Bina Sinar Amity, an integrated logistics, export and import service provider company. Meanwhile, Bizzy Distribution is legally under PT Sinarmas Distribution Nusantara.

In addition to being affiliated with the Sinarmas group, Bizzy is also a portfolio member of East Ventures. Sinarmas itself through its venture capital unit, SMDV, is also a part of EV Growth.

Get ready for growth momentum E-commerce B2B

Citing various data sources, current income E-commerce B2B in Indonesia accounts for less than half of total revenue E-commerce overall in 2020. As an illustration, income E-commerce B2B in India accounts for 93% of total revenue E-commerce there and 72% in China.

Warung Pintar Co-Founder & CEO Agung Bezharie said, both companies want to realize the same mission, which is to transform traditional retailers and improve their efficiency in the supply chain, which is currently considered to be fragmented with two different approaches.

Therefore, Agung hopes to change the digital-based distribution approach which has always been driven by promotions and massive discounts to attract customers.

"The joining of Bizzy into the Warung Pintar ecosystem allows the company to guarantee the availability of products and reasonable prices with its partners," said Agung in a press statement received DailySocial.

Furthermore, Bizzy CEO Andrew Mawikere added that after the acquisition, Bizzy will remain the entity that will focus on bridging the synergies between the two companies by brand and distributors, as well as enabling them to become a digital retailer ecosystem.

This means that synergies will continue to exist, Warung Pintar can focus more on efforts to digitize consumers retailerher, while Bizzy focuses on serving partners brand and distributors.

"After Bizzy's entry as part of Warung Pintar, later there will be no other players integrated into our supply chain. That way, we can serve brand and distributors with value added unprecedented and data-driven strategy at scale," said Andrew.

Established in 2017, Warung Pintar offers solutions to problems faced by micro-entrepreneurs who have been the foundation of the Indonesian economy with a contribution of 70% to total retail transactions in Indonesia. Meanwhile, this acquisition will combine two companies that have collaborated with 600 brands and serve 230 thousand retailer in 65 cities throughout Indonesia.

Willson also sees the synergy and efficiency opportunities that will be created by the merger of these two companies. "Warung Pintar is a platform from the demand side, while Bizzy is from the supply side. When combined, they can serve consumers, retailers and brands in the most effective way. This is truly 1+1=3," he said in an official statement.