BukuWarung’s losses swell 33% in 2022

Photo credit: East Ventures

Indonesia-based BukuWarung, a fintech firm focused on MSMEs, generated US$25.3 million in losses for 2022, according to VentureCap Insights, which tracks regulatory filings in Singapore. The amount is 33% higher compared to the previous year.

On the top line, the company logged just shy of US$1 million in revenue for the period. The company only started monetizing its services over a year ago, having previously offered its platform for free.

BukuWarung also appears to have shed staff since last year, though it’s unclear whether the company went through layoffs. On its LinkedIn page, it listed around 260 employees, a drop from 332 staff in the beginning of 2023 and 396 in January 2022.

Tech in Asia has reached out to BukuWarung for comment.

The firm posted negative US$20.2 million in net cash flow used for operations in 2022, relatively unchanged compared to the previous year. However, the minimal revenues appear to have dragged the company’s total current assets – which includes cash and cash equivalents – down to US$35.9 million.

Founded in 2019 by Abhinay Peddisetty and Chinmay Chauhan, BukuWarung provides an app-based bookkeeping solution for small businesses. Features include credit tracking, inventory management, and payments services.

The company’s website says it has 8 million merchants on a network spread across 750 locations in Indonesia.

Once a rising VC-fueled sector, some players in the Indonesian bookkeeping space have found it difficult to monetize.

Tiger Global-backed Lummo, whose BukuKas bookkeeping product was a direct competitor to BukuWarung, expanded its offerings to include a Shopify-like service called Tokko. Despite US$149 million in venture funding, the company reportedly folded in mid-2023.

BukuWarung also launched an app called Tokoko, which has features similar to Lummo’s Tokko but also provided financing solutions. Earlier this year, BukuWarung told local media that it had disbursed almost US$28 million in loans through Tokoko between 2021 and April 2023.

Another rival is Credibook, which was founded by a Traveloka alumnus. Unlike the other two bookkeeping players, the Y Combinator-backed firm has raised a more modest amount of capital, most recently securing US$8.1 million in a series A round in April 2022.

According to Tech in Asia data, BukuWarung has raised US$80 million in disclosed funding so far. Backers include East Ventures, AC Ventures, and Peter Thiel’s Valar Ventures, as well as cigarette heir Michael Sampoerna, Tinder co-founder Justin Mateen, and former GoPay CEO Aldi Haryopratomo.

See also: The VC-fueled race to become Indonesia’s dominant digital bookkeeper