(Bloomberg)—Indonesian software startup Lummo, formerly known as BukuKas, raised $80 million in a round led by Tiger Global and Sequoia Capital India to expand its business that helps small merchants get online.
Google parent Alphabet Inc.’s investing arm CapitalG took part in the Series C round in a rare Indonesia deal for the unit. Other investors include London-based Hedosophia and the founder of Lazada, Maximilian Bittner, executives of the Jakarta-based startup, said in a video interview. Hedosophia was among investors in a $50 million round in May last year. Alphabet is No. 82 in the 2021 Digital Commerce 360 Top 1000.
Demand for Lummo’s service—similar to that of Shopify Inc.—is rising as small businesses digitize to cater to the millions of shoppers COVID-19 drove online after the pandemic closed malls and retail outlets. Southeast Asia added 60 million new digital consumers since the start of the pandemic, research from Google, Temasek and Bain & Co. shows.
Lummo helps merchants build retail websites and do digital bookkeeping. Close to seven million small businesses have registered to use its platform since the end of 2019, said Krishnan Menon, founder and chief executive officer. The startup will use the fresh funds to boost hiring and strengthen its product and technology. It also seeks to expand in Vietnam, Thailand and the Philippines over the next two years.
Ecommerce software platforms across Southeast Asia have capitalized on the retail boom to raise funds. Lummo’s competitor BukuWarung raised $60 million in a round led by Peter Thiel’s Valar Ventures and Goodwater Capital in June, while Sirclo did a $36 million round in September.
In other funding news:
- Accrue Savings, which allows consumers to put money into savings accounts for specific purchases, raised $25 million. Accrue lets retailers embed savings features on their shopping sites and offers shoppers rewards for making deposits towards purchases. The funding comes after Accrue added retailers like Smile Direct Club Inc. (No. 123) and Casper Sleep Inc. (No. 167). Accrue’s total funding to date is now nearly $30 million.
- Cosmetic brand brand Il Makiage (No. 406) raised $130 million through parent company Oddity. Thomas Tull, Franklin Templeton, Fidelity Management & Research Company LLC and First Light Capital Group led the investment, with participation from additional growth equity investors. The investment will boost Il Makiage’s technology team, which is developing technology to better match online users with the right beauty products for their features. The deal values Oddity at $1.5 billion.
- Australian “instant delivery” service Milkrun raised $75 million to expand beyond inner Sydney. Milkrun, which delivers from its own warehouses to customers within 10 minutes of ordering, will bring its service to the wider Sydney area and other cities across Australia. The service launched in September, going up against other recently launched delivery services in the market like Voly, which raised $18 million in December. Across the globe, services promising delivery of groceries in under 2 hours are growing in popularity, with companies like Gorillas and GoPuff raising huge funds to expand into new cities worldwide.