Praktis raises 20 million dollar to help Indonesian SME fashion brands handle their supply chains

Praktis the startup that handles everything from raw material purchases to order fulfillment for D2C brands and suppliers has raised $20 million in Series A funding. Through its platform, Praktis’ customers can manage their business operations, including raw material purchases, production, fulfillment, and logistics.

The fund would be available for small to medium-sized enterprises that contribute 60 percent of Indonesia’s gross domestic product.

These companies in the D2C space struggle to compete against bigger brands. Praktis wants to put them on a more level playing field.

The announced it has raised million in Series A funding.

The round was led by East Ventures (Growth fund), with participation from Triputra Group and SMDV.

Indonesian SMEs, many experience difficulties while scaling up their business operations. These include finding reliable suppliers, getting fair pricing, the cost of labor, and high exposure to fixed costs. Praktis also aggregates purchasing and processing for economies of scale.

This leaves D2C brands free to focus on other parts of their business, including brand building and marketing.

The startup started in fashion before moving on to the beauty industry.

Praktis claimed 12x growth year-on-year from 2020 to 2021 as the COVID-19 pandemic accelerated the adoption of its services, and 4x growth year-on-year from 2021 to 2022.

Praktis will use its new funding for technology development for both brands and suppliers, building its team and expanding its end-to-end supply chain ecosystem.

East Ventures representative said it has doubled its investment in Praktis as they strive to empower D2C brands in Indonesia and hit profitability much faster than we expected.