Amazon founder Jeff Bezos has re-injected funds for an Indonesian startup, Lummo. Let's get acquainted with this startup.
Lummo was founded as Cashbook in 2019 by Krishnan Menon and Lorenzo Peracchione. The two met while still working at Lazada Indonesia.
Initially, BukuKas offered a bookkeeping application to help MSMEs manage their finances. Since its launch, BukuKas has continued to add new features to its app, including online payments.
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Not long after, BukuKas launched its newest service called Tokko. This platform allows business actors and MSMEs to set up their own online store websites. In December 2021, Tokko won the Google Play Store Users' Choice Awards for the User's Choice Application category.
A month later, BukuKas/Tokko announced a rebranding to Lummo as the holding company in charge of its products. In addition, Tokko has also now changed its name to LummoSHOP.
Lummo is now focusing its business as a service provider that connects businesses directly to customers (direct-to-consumer/D2C) via software-as-a-service (SaaS), with LummoSHOP as its flagship product.
Lummo has received funding series three times since early 2021. In January 2021, Lummo, which was still named BukuKas, received an injection of USD 10 million followed by Series B funding in May 2021 of USD 50 million.
The cash injection from Jeff Bezos received by Lummo is part of a series-C funding of USD 80 million led by Tiger Global and Sequoia Capital India.
Lummo Co-founder and COO Lorenzo Peracchione said that this investment from Jeff Bezos indicates the potential for the development of a new business model in the realm of e-commerce, namely direct-to-consumer.
"On the other hand they understand the potential of this region to develop a new wave of e-commerce, namely direct-to-consumer," Lorenzo said in an interview with us.
"On the other hand, I think they realize the value of the local knowledge our team has built over the years."