June 14, 2024

Investment Notes: Paper.id Series B

We’re thrilled to have led Paper.id's Series B round, with participation from SMBC Asia Rising Fund and Argor Capital.

Tushar Roy

June 13, 2024

Investment Notes: Paper.id Series B

We’re thrilled to have led Paper.id's Series B round, with participation from SMBC Asia Rising Fund and Argor Capital.

Tushar Roy

We are excited to join the Paper.id team on their journey to transform how businesses manage accounts, invoicing, and payments in Indonesia and across Southeast Asia.

Paper.id focuses on helping Indonesian businesses manage their accounts receivable and accounts payable through its invoicing and payment platform. The platform enables easy invoice creation, automatic reconciliation, and precise document matching. It also opens access to various payment methods, including credit card payments, offering extended terms for payers. The platform also provides accounting and bookkeeping features. 

To date, Paper.id has served more than 600,000 SMEs across various sectors in Indonesia. We’re looking forward to continuing to support the Paper.id team as they continue to digitise and transform the large and economically important SME sector in Southeast Asia.

Meet the team behind Paper.id

We’re excited to partner with Paper.id and its Co-Founders, Yosia Sugialam (CEO) and Jeremy Limman (CPO), on the next phase of their journey. 

Yosia has a deep personal connection to the problem, having seen first-hand in his family business the challenges businesses face with paying and getting paid. He combines this experience with his experience working on large enterprise resource planning (ERP) systems to create Paper.id.

Jeremy has also experienced the pain points for small and medium businesses in Indonesia that need access to working capital for growth and is passionate about using technology to solve problems at scale.

Yosia and Jeremy met at university and had wanted to work together ever since, coming together to build Paper.id.   

The problem Paper.id is solving

Indonesia's B2B payment sector is experiencing tremendous growth, and the country is fast adopting digital business payments. More than 95% of B2B payments in Indonesia are already digital, compared to only 65% in the US. 

Despite this rapid expansion of digital payments, many businesses in Indonesia still use non-digital methods to manage their accounts and invoicing, making reconciliation messy and inefficient. Suppliers often provide physical invoices to buyers and struggle to scale their businesses due to a lack of working capital. In Indonesia, it takes an average of 73 days for invoices to be paid with more than 55% of business invoices overdue. 

By focusing on unlocking these frictions in Indonesia's rapidly growing SME sector—which comprises over 60 million businesses and contributes significantly to the country's GDP— we believe that Paper.id can become a leading player in the region for accelerating businesses’ payment processes. 

Paper.id helps businesses optimise their cash flows by offering features such as payment facilitation, automatic reconciliation, precise tracking and document matching, and a funding-based supply chain.

Paper.id is already trusted by over more than half a million business owners across Indonesia. For example, Kopi Kenangan, an Indonesian coffee chain with more than 800 outlets in Indonesia and an expanded presence in Singapore and Malaysia, uses Paper.id to manage more than 4,000 monthly invoices from hundreds of suppliers. By integrating Paper.id into their existing system, Kopi Kenangan is able to efficiently process and monitor supplies through a single, comprehensive platform, significantly reducing both costs and time. 

In 2023, Paper.id also established an exclusive partnership with Peruri (the Indonesian Mint) to provide e-materai (electronic stamps). This is a major step forward, as invoices over a certain amount require an official materai from the Indonesian Mint to be deemed valid. Paper.id also teamed up with Visa and Bank BRI on a strategic collaboration to launch Indonesia's first premium business credit card. 

What’s next for Paper.id?

With this latest fundraising round, Paper.id plans to enhance and expand its solutions, further positioning itself as the go-to platform for business owners to manage and process their transactions efficiently. 

The Paper.id team are currently integrating automation, through machine learning and artificial intelligence into their B2B Payment process to further enhance efficiency and security. They are also looking to extend their suite of offerings by enabling cross-border payments, complemented by robust business verification capabilities.

We’re excited by Paper.id’s ambitious vision to transform how businesses manage accounts, invoicing, and payments and look forward to supporting them on their next stage of growth.

We’re delighted to welcome you to Square Peg, Yosia, Jeremy, and the Paper.id Team!