Small to medium-sized enterprises contribute 60% to Indonesia’s gross domestic product. But companies in the D2C space are still struggling to compete with bigger brands. Praktis wants to put them on a more level playing field.
The startup, which handles everything from raw material procurement to order fulfillment for D2C brands and suppliers, today announced it has raised $20 million in Series A funding. The round was led by East Ventures (Groeifonds), with the participation of Triputra Groiup and SMDV.
Praktis co-founder and CEO Adrian Gilrandy told MinRegion that while 60% of Indonesia’s GDP comes from SMEs, many are experiencing difficulties scaling their businesses. These include finding reliable suppliers, getting fair prices, labor costs and high exposure to fixed costs.
Through the platform, Praktis’ customers can manage these business operations, including raw material procurement, production, fulfillment and logistics. Gilrandy said Praktis is also merging procurement and processing for economies of scale. This gives D2C brands the freedom to focus on other areas of their business, including brand building and marketing.
The startup plans to scale by growing with the D2C brands it serves. Gilrandy said the ecosystem could easily be applied to other industries. For example, it started in fashion before moving on to the beauty industry. Praktis claimed 12x annualized growth from 2020 to 2021 as the COVID-19 pandemic accelerated adoption of its services, and 4x annualized growth from 2021 to 2022.
Praktis will use its new funding for technology development for both brands and suppliers, building its team and expanding its end-to-end supply chain ecosystem.
The startup also announced today that it has appointed Leonard Pontoh as chief financial officer. Pontoh also joins the board of directors.
In a statement, Willson Cuaca, co-founder and managing partner of East Ventures, said: “We are excited to double our investment in Praktis as they aim to make D2C brands in Indonesia stronger and become profitable much faster than we had anticipated. expected.”