While closely associated with bright yellow kiosks, Warung Pintar is pursuing the far bigger ambition of transforming and digitalising traditional trade in Indonesia, with comprehensive solutions for all stakeholders.
Modernising traditional trade in Indonesia is not a challenge for the faint of heart. Unorganised channels still account for 74% ($267 billion) of retail in the country. As much as 60% of the unorganised sector is accounted for by warungs or mom-and-pop stores, according to figures from Redseer Research. To add to the complexity, there can be as many as 5 layers of intermediaries between manufacturers and their eventual consumers. It is a vast, interconnected network with a high level of information asymmetry.
To address this challenge, the Indonesia-based Warung Pintar Group has reoriented itself to become an integrated solutions provider for traditional trade.
CEO Agung Bezharie Hadinegoro candidly admits that dealing with the entirety of the ecosystem was not part of the original game plan. Warung Pintar began in 2017 as a modest attempt to provide a workable solution to a single warung owner in front of investor East Ventures’ co-working space. It subsequently grew to become a vast network of modernised retail kiosks delivering a significant uptick in revenue for warung owners. Its expansion over the last few years was fuelled by a high degree of customer orientation and a frugal approach when it came to business, drawing in investors including SMDV, Vertex Ventures, Pavilion Capital, Line Ventures, EV Growth (now part of East Ventures) and OVO.
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26 May 2021