Indonesia’s business-to-business (B2B) fintech company Paper.id has raised an undisclosed sum in its Series B fundraising led by Square Peg. New investor SMBC Asia Rising Fund, a corporate VC co-founded by the Sumitomo Mitsui Banking Corporation and Incubate Fund, participated in the round.
Existing backer Argor Capital also re-upped in the latest round.
Paper.id plans to use the proceeds to expand its solutions, positioning itself as the go-to platform for business owners to manage and process their transactions efficiently. The company is set to introduce new services this year including the just-launched B2B pay later payment option; integrated bank account payment; and B2B cross-border payment, which will be rolled out between the third and fourth quarter this year, according to co-founder and CEO Yosia Sugialam.
“We expect these three new services to help users manage cash flow better,” Sugialam told reporters on Thursday. He added that since its establishment in 2017, Paper.id has grown into one of the largest B2B fintech payments in Indonesia, having processed $2 billion in annual payment volume in 2023.
Last year, its annual TPV (Transaction Processed Value) grew by more than 30 times compared to 2021.
Paper.id simplifies invoice creation, automatic reconciliation, and precise document matching. It also provides access to various payment methods, including credit cards, offering extended terms for payers. To date, Paper.id has served over 600,000 clients, ranging from small and medium businesses to large enterprises across various sectors in Indonesia.
“Currently, we are integrating automation, be it in the form of machine learning or artificial intelligence (AI), into our B2B Payment process to enhance efficiency further. We are also looking to make our solutions more comprehensive by enabling cross-border payments, complemented by robust business verification capabilities,” said Sugialam.
Meanwhile, for business installment payment services, the startup partners with banks and fintech lenders.
In December 2022, DealStreetAsia reported that Paper.id raised $12 million in a Series B funding round led by Argor Capital [formerly known as Go-Ventures]. While the company and its investors did not comment on the report back then, regulatory filings by the company’s Singapore-registered parent, Ionic Global, seen by DealStreetAsia, confirmed that Paper.id had raised at least $7.3 million in December that year.
In October 2019, Paper.id bagged a Series A funding round worth “billions of rupiah” from the Singapore VC firm Golden Gate Ventures and the fintech company Funding Societies, also called Modalku in Indonesia. Indonesian fintech firm Xendit, which became a unicorn in 2021, also invested in the round.
