Ardent Capital today announced the launch of one of Indonesia’s first B2B ecommerce marketplaces with a $2.5 million commitment to Bizzy.co.id, amidst a growing investor gold rush to ecommerce ventures in the country.
Bizzy will solve a pain point with procuring inventory, supplies and services from other businesses. The platform carries thousands of products from hundreds of merchants in business supplies, electronics, cleaning, pantry and services.
“Globally B2B ecommerce has gained massive traction. In Korea we’re talking 91 percent penetration, while in Indonesia this type of ecommerce is in its infancy so the opportunity is huge. Just 11 percent of all startup endeavours in Indonesia are dedicated to B2B,” said Adrian Vanzyl, CEO of investor Ardent Capital.
Disrupting the Traditional B2B Climate
Bizzy CEO and co-founder Peter Goldsworthy spent the past eight years building businesses in Indonesia and saw a lack of innovation in business supplies and services.
“I was constantly frustrated with ordering supplies and services. In particular I felt the entire process of sourcing, approval and shipping could easily be improved upon,” Peter said.
Through market research Bizzy discovered that many distributors and principal brands were having difficulties reaching and servicing their direct B2B customers.
“Merchants were struggling to meet the needs of businesses. What we were seeing was that the way businesses shop was much more complex than how an individual would and this was causing problems at both ends of the transaction,” Peter explained.
Bizzy helps merchants make the shift to online and meet the logistical demands of B2B business customers, by integrating multiple shipments from multiple vendors, known as ‘crossdocking’, through the fulfilment center of partner aCommerce.
Enticing Millennials
The demographics of those making B2B purchasing decisions has shifted rapidly. In a Google- and Millward Brown Digital-partnered B2B marketplace report this year, data showed that between 2012 and 2014 the age of those doing B2B research increased 70 percent in the 18- to 34-year-old age group. The data also showed that by 2014 this millennial age group was also accounting for 46 percent of B2B purchasing decisions.
“Millennials are now the key decision-makers for company sourcing. This changing of the guard means they expect the same information available for personal purchases when they search for business solutions. Bizzy addresses that need,” Peter added.
Bizzy will actively support not just tech startups but charities, hospitals and universities by offering wholesale pricing through a complimentary year of ‘Bizzy Wholesale’ membership, entitling them to wholesale purchase rates irrespective of purchase quantity.
With customers like Tiket.com, Traveloka, Halomoney and Grabtaxi already onboard, Bizzy is generating the buzz to make 2015 the year of B2B.
Snapshot: Penetration of B2B Ecommerce in Asia
In the US, B2B ecommerce represents a $1 trillion opportunity, while in mature Asian markets B2B ecommerce already accounts for a large and growing share of total online transactions:
- In China B2B ecommerce is estimated to have a potential value of $2.1 trillion by 2020
- In South Korea 91 percent of online transactions are B2B
- In Thailand B2B represents more than 50 percent of all online transaction value, yet by startup founder type, captures less than 20 percent of all founders who launch businesses
- In Indonesia the current split between B2B and B2C revenue is just 11 percent