On Monday, Thailand-based venture capitalist Ardent Capital known for its investment in early-stage technology companies in Southeast Asia has announced the launch of Bizzy.co.id, an e-commerce marketplace for business supplies with a funding of $2.5 million.
Founded in February 2015 in Indonesia, Bizzy offers solutions for companies to procure supplies and services for their business needs. The startup has 37-strong team manages a B2B platform that carries products of five main categories from vendors in office supplies, electronics, cleaning, pantry and services. Shipping to all 34 provinces in the country, Adrian Vanzyl, CEO of Ardent Capital said this B2B commerce had gained much attention globally.
Bizzy’s CEO and co-founder Peter Goldworthy believes that the above mentioned five categories of products are sorely lacking in Indonesia’s B2B e-commerce space. He said, “I was constantly frustrated with ordering supplies and services. In particular, I felt the entire process of sourcing, approval and shipping could easily be improved upon.”
Market research helped the startup discover that many distributors and principal brands were facing issues in reaching and serving their direct B2B customers. Bizzy with the help of crossdocking, which is integration of multiple shipments from multiple vendors, helps the merchants make the move to online and keep up the logistical demands of B2B business customers via the fulfillment centre of partner aCommerce. Peter said, “Merchants were struggling to meet the needs of businesses. What we were seeing was that the way businesses shop was much more complex that how an individual would and this was causing problems at both the ends of the transaction.”
According to the CEO of the startup, the company has grown over 300% in the past three months and now serves 45 businesses from five customer segments of SMBs, retailers, government departments, educational institutions and hospitality organizations. Apart from satisfying an important need, its growth can also be influenced to the scarcity of competitors in the marketplace. He claims, “Very few businesses target the business consumer in the region. Bhinneka and Office Mate target the electronics and stationary side, but neither go end-to-end in terms of the goods and services that businesses need.”
The penetration of B2B e-commerce had reached 91% in South Korea, whereas in Indonesia this type of e-commerce is still developing and has a huge potential. “Just 11% of all startups endeavors in Indonesia are dedicated to B2B,” said Adrian. The research found that B2B e-commerce in China will have a potential worth of $2.1 trillion and also represents 50% of online transactions in Thailand.