Baskit, an Indonesia-based digitalized distributor, has recently secured $3.3 million in Seed funding, to strengthen its Distribution Infrastructure.

Baskit said in a statement on Tuesday that the funding was participated by regional and local investors like Betatron Venture Group, Forge Ventures, Investible, 1982 Ventures, DS/X Ventures, Orvel Ventures, and Michael Sampoerna.

This funding round follows their recent Pre-Seed raise of $1.5 million in March.

With this fresh injection of capital, Baskit aims to expedite its expansion plans, further develop its technology stack, and extend the number of Supply Chain verticals it covers.

“Our ambition is to construct a platform that harmonizes all the key players in the supply chain, embracing new transformative technologies but also respecting traditional norms,” said Yann Schuermans, Chief Executive Officer of Baskit.

To achieve this, he said the firm is focused on developing cutting-edge tools that excel in functionality and usability for the small and medium-sized enterprises (SMEs) it serves.

With the capital raised, he said the firm will expedite the advancement of its tech roadmap and expand its presence city-by-city, consistently infusing its platform with the flexibility to accommodate Indonesia’s extensive and diverse landscape.

Baskit was founded in 2022 with the mission to enable traditional supply chains by providing commercial support and simple tools to offline distribution businesses.

Since its commercial launch in November 2022, the firm has experienced remarkable growth, boasting month-on-month revenue growth rates exceeding 70 percent.

This rapid expansion is a reflection of the market’s pressing need to fortify the operations of distributors and wholesalers, who face mounting competitive pressures and financial challenges in the post-Covid landscape.

This “new normal” is characterized by heightened awareness but limited access to technology, shrinking profit margins, increased operational complexities due to inflation, and declining sales in certain sectors.

Baskit’s emergence, thus, comes at an opportune time to address these critical areas and gain rapid adoption.

According to Schuermans, trade and industry, commanding more than half of Indonesia’s gross domestic product (GDP), depend on the indispensable network of over 200,000 traditional distribution businesses.

These businesses serve as the vital link connecting people with a diverse range of products, from everyday essentials like biscuits to construction materials like cement, he added.

While there may be a popular inclination to displace these intermediaries, he said it is not a sustainable approach considering their invaluable infrastructure and relationships.

“At Baskit, we are unwavering in our commitment to empower and uplift these intermediaries as they contribute to the growth and prosperity of their local communities,

“We firmly believe that by supporting them, we can unlock substantial long-term economic benefits for all stakeholders involved,” he said.

Betatron Venture Group Managing Partner Arshad Chowdhury said that Betatron and Baskit both carry the contrarian view that many traditional players in Asia, like wholesalers and distributors, are deeply embedded within their industries.

“Tomorrow’s winners find ways to work with rather than against them,” he said.

Meanwhile, Forge Ventures Partner Tiang Lim Foo said the firm backs Baskit for the second time since leading its first round in March 2023.

“The team has been executing relentlessly against their vision of enabling the supply chain industry with technology, and we are nothing but impressed with the team’s dedication to their mission, with results to show,” he added.