Indonesian e-procurement firm Mbiz eyes $20m series B raise

Mbiz, an Indonesian business-to-business e-procurement platform, announced in a media briefing today that it is targeting to raise US$20 million in a series B round.

The company expects to finalize the round in the second quarter of this year, Ryn Hermawan, co-founder and chief operating officer at Mbiz, told DailySocial.

Photo credit: Mbiz

Mbiz will use the new funds to invest further in its platform and team, Rizal Paramarta, the company’s CEO, said.

The funding plan comes three years after it secured an undisclosed amount of series A money in 2017.

“For the past three years, we have not raised new funds because our business is efficient. We do not burn money or subsidize. Our profitability is clear, so we are optimistic that in 2021 it will be positive,” said Paramarta.

Founded in 2015, Mbiz offers an integrated e-procurement system to simplify B2B transactions. It now looks to scale its business by forming strategic partnerships with ecommerce-focused companies as well as co-branding initiatives with established brands.

Paramarta, however, said that expansion in Southeast Asia is not yet a priority for Mbiz because the e-procurement market in Indonesia is still very large. “But in the next three years, we can focus on foreign countries, given the huge market potential,” he was quoted as saying in the report.

Mbiz is up against local rivals such as Bizzy, which raised US$8 million in a series A round led by Sinar Mas Group in 2018. Bukalapak has also entered the e-procurement market through BukaPengadaan.