Tiger Global, Sequoia lead $80m funding for 🇮🇩 SME-focused firm

BukuKas, an Indonesia-based startup that helps SMEs go digital, has raised US$80 million in a series C funding led by Tiger Global and Sequoia Capital India. Other investors such as Alphabet’s investment arm CapitalG, NuvemShop CEO Santiago Sosa, and former Lazada CEO Max Bittner also joined the round.

In addition to the fundraise, BukuKas also announced that it has rebranded to Lummo.

Lummo co-founders Lorenzo Peracchione (left) and Krishnan Menon / Photo credit: Lummo

Founded in December 2019, Lummo has two apps under its umbrella: ecommerce enabler solution LummoShop (previously called Tokko), and bookeeping app BukuKas. The startup was established by Krishnan Menon and Lorenzo Peracchione, who are both part of the growing Lazada mafia.

“Under the mother brand Lummo, there will be different products that will be launched in the near future,” Peracchione explained. However, he said that LummoShop is the company’s focus right now, especially with the new funding.

Eight months ago, the startup raised a US$50 million series B funding from new and existing investors. Lummo currently has 300 employees, with a substantial number of them working in the tech and merchant support divisions.

Focus on growth-oriented merchants

After starting out with its bookkeeping business, the company expanded to ecommerce with LummoShop in November 2020.

It is a software-as-a-service solution that can help entrepreneurs and brands to build their own websites and sell their products directly to consumers via WhatsApp and other social media platforms. Lummo plans to add more capabilities to the app, such as chat commerce, custom domains, and the ability to manage shops in marketplaces like Tokopedia and Shopee.

“The category of products that were sold via LummoShop is pretty diverse, from food and beverages, beauty, to fashion,” Lummo’s Peracchione noted.

In a statement, the company said that the gross merchandise value of LummoShop grew 11x from December 2020 to December 2021. The app attracted more than 1 million merchants last year, Lummo added.

See also: Can Indonesia’s Shopify-like startups usurp ecommerce giants?

According to Peracchione, LummoShop wants to zero in on attracting growth-oriented merchants and helping them sell more. He pointed out that Lummo’s founders have worked at several startups and bookkeeping businesses, giving them the context and ability to understand merchants’ pain points.

“The market potential is huge. I don’t see it as a winner-take-all business; there’s room for multiple players,” Peracchione observes. Lummo also sees the possibility of bringing its business to other countries in Southeast Asia, but the company remains focused on Indonesia right now.