Indonesia's Juragan Material raises US$4mil to boost growth
By Digital News Asia July 4, 2022
- Aims to digitalise construction supply chain sector
- Funds used to hire, enhance products, market penetration
Indonesia's Juragan Material has raised US$4 million in seed funding led by Go-Ventures and complemented by Susquehanna International Group (SIG).
In a statement, Indonesian construction technology platform said it plans to use this funding to grow its team by hiring aggressively key roles in product, engineering, sales and operations; strengthen its market penetration of its business-to-business (B2B) construction and building material marketplace; and to innovate and deepen the capabilities of its product ecosystem.
“The construction sector is a significant contributor to Indonesia’s gross domestic product (GDP),” said Arum Putri, vice president at Go-Ventures.
“Despite its importance to Indonesia’s economy, the sector’s supply chain is highly fragmented with multiple layers, resulting in unpredictable demand and supply, lack of pricing transparency, inconsistent quality of materials, and an overall lack of coordination.
“Less than 1% of supply chain transactions are captured digitally, such that contractors and project owners must resort to highly inefficient and cumbersome procurement methods,” he said.
Founded in 2021, Juragan Material is one of the fastest-growing construction technology companies in Indonesia. Over the past year, the company has been doubling GMV every month on average while maintaining positive unit economics.
The company claimed that its B2B marketplace provides an efficient procurement solution for sourcing building materials from trusted suppliers and principals.
With over 9,000 SKUs and over 180 brands across structural, architectural, mechanical and electrical products onboarded onto the platform, contractors and project owners can benefit from reduced effort and time spent sourcing products, less errors on-site, and better control over project timelines, it said.
“My co-founders and I came from the construction industry and built Juragan Material to address the pain points that we experienced first-hand working as contractors and suppliers. In an industry where time is critical, we quickly became frustrated with the difficulties of procuring materials and managing projects effectively,” said Tito Putra, CEO and co-founder of Juragan Material.
Putra said it could take days to source for a single item, and check with multiple vendors for pricing and stock availability. Other challenges include late delivery of materials purchased on-site, lack of supply visibility, and inefficient offline payment and paperwork.
“We are focused on building a trusted technology platform for the procurement of construction materials. Juragan Material aims to provide top value to contractors and project owners by offering them the most comprehensive selection of products, improved supply visibility, and reliable logistics to manage their projects more efficiently,” he said.
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