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Small to medium enterprises contribute 60% of Indonesia’s GDP. But companies in the D2C space still struggle to compete with big brands. Practice wants to put them on a more level playing field.
The startup, which handles everything from raw material procurement to ordering for D2C brands and suppliers, today announced it has raised $20 million in Series A funding. The round was led by Eastern Ventures (a growth fund) with participation from Triputra Group and SMDV.
Practis founder and CEO Adrian Girandi told TechCrunch that although 60% of Indonesia’s gross domestic product comes from SMEs, many face challenges as they grow their businesses. These include access to reliable suppliers, fair pricing, labor costs and high exposure to fixed costs.
Functional group
Through its platform, the practice’s clients can manage this business, including raw material procurement, production, fulfillment and logistics. Gilrandi’s practice also includes procurement and processing for economies of scale. This allows D2C brands to focus on other parts of their business, including brand building and marketing.
The startup plans to grow and scale with the D2C brands it serves. Gilrandi said that the ecosystem can easily be applied to other verticals – for example, he started in fashion before moving to the beauty industry. The practice accelerated adoption of its services during the COVID-19 outbreak from 2020 to 2021 and saw 4x year-over-year growth from 2021 to 2022.
The practice will use the new funding for brands and suppliers to develop technology, build its team and expand its end-to-end supply chain ecosystem.
The startup also announced the appointment of Leonard Ponto as its chief financial officer. Pontoh is joining the board of directors.
“We are thrilled to double our investment in the practice to grow D2C brands in Indonesia and hit profitability faster than we expected,” said Wilson Kua, founder and managing partner of Eastern Ventures in a statement.
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