In Indonesia, small and medium-sized businesses account for 60% of the country’s GDP. However, D2C businesses still find it challenging to outsell more prominent names. Praktis aims to equalize the playing field for them.
The business, which manages every aspect of order fulfillment for D2C brands and suppliers—from the acquisition of raw materials to it—announced today that it had secured USD 20 million in Series A funding. Triputra Group and SMDV also participated in the round, which East Ventures (a growth fund) spearheaded.
Despite accounting for 60% of Indonesia’s GDP, SMEs have challenges when trying to scale out their operations, according to Adrian Gilrandy, co-founder and CEO of Praktis. Finding trustworthy suppliers, receiving fair prices, the expense of labor, and significant exposure to fixed costs are a few of these.
Customers of Praktis can handle these business operations, such as the procurement of raw materials, production, fulfillment, and logistics, through its platform. Gilrandy said that Praktis additionally aggregates purchasing and processing for cost savings. D2C brands can now concentrate on other areas of their businesses, such as marketing and brand development.
By expanding with the D2C brands it services, the firm intends to develop. Gilrandy asserted that its ecosystem is easily adaptable to various verticals; for instance, it began in the fashion sector before expanding to the beauty sector. The COVID-19 epidemic boosted the adoption of Praktis’ services, resulting in a 12x growth year-over-year from 2020 to 2021 and a 4x rise year-over-year from 2021 to 2022, according to the company.
With its new finance, Praktis plans to grow its workforce and construct an end-to-end supply chain ecosystem for suppliers and brands.
The business has disclosed that Leonard Pontoh has been named as its chief financial officer. Pontoh will also be a member of the board.
Willson Cuaca, the managing partner and co-founder of East Ventures, said: “We are thrilled to double down our investment to Praktis as they strive to empower D2C brands in Indonesia and hit profitability much faster than we expected.”
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