February 21, 2024

Big brand distributors dominate at the top of the supply chain, but at the bottom, there are thousands of middlemen, including wholesalers, who are the ones who build relationships with retailers. established last year, Basque Want to give them the tools to digitize inventory and service management to help them get better prices. The Indonesia-based startup announced today that it has raised $3.3 million in seed funding, with investors including Betatron, Forge, 1982, Investible, DS/X, Orvel, and Michael Sampoerna. Three months ago, the seed round was $1.5 million.

Founder Yann Schuermans says he is “a firm believer in this space. Supply chains are critical to the economies of every major Southeast Asian economy, as 40% to 50% of their GDP depends on supply chains. Ultimately they have to modernize and digitize .”

Baskit is currently working with more than 50 wholesalers, mainly located in West Java. Schulmans pointed out that supply chains in emerging markets are very fragmented, especially in Indonesia, which has a geographically complex country of thousands of islands. Therefore, supply chains are not as simple as getting goods from point A to point B. Middlemen are necessary, Schulmans said, because the supply chain begins with manufacturers and distributors, and then to smaller distributors and wholesalers who sell products to retailers.

“All these intermediaries are very critical to their relationship and connection to the community,” he added. “Their kids go to school with the kids of the shop owners who buy their products.

Wholesalers generally have no exclusivity over brands and operate more like traders, buying products that can be sold at a higher price. Instead of trying to eliminate the role of middlemen in the supply chain, Baskit provides them with multiple layers of tools to grow their business. These include software to help them digitize operations and bring inventory online.

Baskit's team from left to right: From left to right: Adityo Wibisono Haryanto (Head of Product), Yann Schuermans (CEO), Sigfrid Erik (Head of Technology), Yoonjung Yi (Head of People), Surya Bhirawa (Head of Commerce) and Hamdhanny Suria Amijaya (Head of Operations)

Baskit’s team from left to right: From left to right: Adityo Wibisono Haryanto (Head of Product), Yann Schuermans (CEO), Sigfrid Erik (Head of Technology), Yoonjung Yi (Head of People), Surya Bhirawa (Head of Business) and Hamdhanny Suria Amijaya (Head of Operations)

Baskit is different from other supply chain startups because these startups typically focus on creating ERP software for the upper corporate part of the supply chain, like big brand distributors with tens of millions of dollars in monthly turnover, Schuermans said. Baskit’s software, by contrast, helps middlemen organize warehouses and inventory, letting them know about pricing, missing shipments, or aging items. Their inventory is then connected to the ordering system, so customers who previously purchased items through the offline process can buy online through the catalog.

Baskit also provides customer service and helps wholesalers source better products and pricing from manufacturers.

“The best way to describe our business is a mix between software digitization partners, but from a service provider perspective that we offer in this area, we almost look like a marketplace,” Schulmans said. “We help connect buyers and sellers, but it’s a very heavily regulated marketplace.” Baskit’s ultimate goal is to make middlemen in the supply chain more attractive to higher-level organizations, including large manufacturers and brand owners one’s business Patner.

“Inventory is the gold standard here because when I have data, I have pricing information, I know how many products are available. I know which products are moving fast. That’s the core of our entire stack. Once we have inventory Visibility, we can play a lot in helping them sell, but also help wholesalers optimize their margins,” he added. This is important because wholesalers typically only make 3% to 7% operating margins and are dealing with inflation. By helping middlemen manage inventory, Baskit is also able to help them decide which suppliers to source from and price correctly what they sell to.

Baskit also provides financing services to intermediaries who often struggle to obtain working capital from traditional financial institutions. It can do this because its software has data on business turnover and money coming in and out. Baskit is currently working with several P2P lenders and some traditional banks, one of which is one of its subsidiaries. cap table.

Baskit’s plan is to expand into more cities, with the goal of reaching double-digit penetration on a wholesaler-per-city basis, which Schuermans said will make it an indispensable player. “This gives us very wide distribution, because these 50 wholesalers can cover the entire region, and it also allows us to gain access to a very important supply base, share of wallet. Interestingly, there are very few suppliers, very few There are wholesalers who can go so far in meeting the overall needs of the retailers they serve.”