Behind the big bucks going into Indonesia’s digital bookkeeping startups

Every day, 100k+ smart people read our newsletter. You can sign up here.

Hello readers,

A close friend of mine who works as a freelance photographer is resigned to the fact that it’ll be a long time before she can afford a place of her own – if at all. As much as she’d love to take out a loan, her income streams aren’t as stable as the banks would like them to be, and the ugly truth is that if you don’t quite fit the mold that banks and financial institutions have laid out for loan eligibility, the chances of your applications getting approved are pretty slim.

It’s a similar story with small businesses in Indonesia. Their reliance on pen and paper bookkeeping methods means that they don’t have proper ledgers they can use to access financing – which is where several startups saw an opportunity.

Today we look at,

• Indonesia’s digital bookkeeping startups
• What this esports startup in the Philippines is doing with its fresh funding
• Other newsy highlights such as Traveloka ramping up its food delivery business and Zomato’s filing for its IPO

PREMIUM SUMMARY

Money matters

Some would argue that small businesses are the backbone of the Indonesian economy. However, around 74% of them don’t have access to financing, and solutions like peer-to-peer lending platforms haven’t been able to make much of a dent in this deficit. That’s where bookkeeping apps come in.

• No more pen and paper: Traditional paper-based bookkeeping approaches have led to a lack of valid data about these businesses’ processes and cash flow, preventing them from accessing typical means of financing. Startups like BukuWarung, BukuKas, and Credibook are trying to address this with their digital bookkeeping apps to create a digital ledger and track these data.
• On the up and up: These apps have attracted millions of users and lots of venture capital funding. An example: BukuKas has raised US$19 million in disclosed funding to date, with names like Sequoia Capital and 500 Startups on its cap table.
• It’s early days yet: Most players are still experimenting and fine-tuning their products to find out what works for Indonesia’s small businesses. What will be important, though, is answering the question of monetization.

Read more: The VC-fueled race to become Indonesia’s dominant digital bookkeeper

STARTUP SPOTLIGHT

The era of esports

Esports is on the rise. In the Philippines, local esports and gaming startup Tier One Entertainment announced it has raised an undisclosed amount of financing in its pre-series A round led by Gobi Partners in a joint venture fund with Core Capital. Warner Music Group joined the round as well as part of its strategic investments in the region.