Indonesian firms dominate Asian startups under 30 fueling regional e-commerce

Owith a population of 274 million and an increasingly tech-savvy middle class, Indonesia has a growing appetite for consumption. Last year, the Indonesian Bureau of Statistics said household consumption accounted for 54% of the country’s $1.2 trillion gross domestic product. Digital consumers are also growing rapidly, with the Covid-19 pandemic being a catalyst. According to the Google, Temasek and Bain e-Conomy SEA 2021 report published in November 2021, Indonesia has seen 21 million new digital consumers since the start of the pandemic, with 72% coming from non-metropolitan areas.

With these statistics, it is easy to understand why six of the 30 companies in the Forbes 30 Under 30 Asia: Retail and E-Commerce the list is from Indonesia.

One of them is Great App. Launched in 2018, the social trading company works to bring down the prices of consumer goods in small towns and rural areas of Indonesia, where they typically cost more than in big cities. Focusing on the less-developed eastern part of the country, Super operates in cities with a GDP per capita of no more than $5,000 and works with a network of resellers who meet consumer demand grouped through its app to save money. of scale via bulk orders of areas growers struggle to achieve. Super currently serves 30 cities in East Java and South Sulawesi and has raised a total of $36 million from investors including Alpha JWC Ventures, B Capital, Y-Combinator, Softbank, rapper Jay-Z and World Bank Managing Director Mari Elka Pangestu.

Less than 30 registered 2022 Debeasinta Budiman and Garret Koeswandi lead product development and logistics, respectively, and are co-founders of Super along with two co-founders over 30, Michael Rendy and Willy Haryanto, and Forbes 30 Under 30 Asia alumnus Steven Wongsoredjo. “Since I was a child, my family often took me to visit rural areas and I realized the price discrepancies. So I was motivated to help these people,” says Budiman, who previously worked at Google as a as a research location analyst and has a family background in consumer goods. She met Wongsoredjo while they were both studying in the US and joined Super in 2019,” Budiman said.

Koeswandi worked as a consultant in companies such as supply chain infrastructure, before joining Super in 2018, and is currently its vice president of operations. “We have noticed that people in rural areas have purchasing power, what they don’t have is access (to products). So we give them that access,” he says. Koeswandi partners with local suppliers as well as truckers and delivery companies to provide next day delivery. As a result, the company claims to save up to 70% in distribution costs by harnessing local talent rather than using large logistics companies. Super also provides jobs and additional income for resellers through commissions when they sell to retailers or customers in their neighborhood.

“We noticed that people in rural areas have purchasing power, what they don’t have is access (to products). So we provide that access.

Garrett Koeswandi, co-founder of Super Apps

“I get 1.5 to 2 million rupees ($100 to $125) per month from Super by selling the goods to warungs (mom-and-pop stores), triple what I earned in my previous job,” says Moch Chairizal Usman Gozaly, one of Super’s agents in Gamping Village, East Java. Gozaly, who joined Super in November, spends four hours a day visiting 20 warungs to pool demand since its customers do not have a smartphone. Local retailers buy from Ghozaly because it’s cheaper, and they also save time and money by going to the nearest distributor an hour away.

In addition to consumer goods produced by companies, Super also sells products from local manufacturers under its own brand. It leverages data to track customer preferences and tastes, including those unsatisfied by consumer goods companies, and develops affordable products to meet that demand. Budiman says there is a huge opportunity for Super’s own-brand products, which it plans to double down on, while Koeswandi plans to expand to other cities.

fast trade

Fast trade is also on the rise in Indonesia and elsewhere in Asia. The promise of fast deliveries – typically within 20 minutes – is made possible by operating logistics centers in strategic locations known as dark stores.

Astro–an Indonesia-based fast-commerce startup co-founded by Marcella Moniaga and Sherlyn Adhianni Gautama in September 2021 – made the list this year. Currently serving the greater Jakarta area, it delivers groceries and other essentials within 15 minutes, supplying over 1,000 products around the clock. In February, Astro closed a Series A funding round of $27m led by Sequoia Capital India and US-based Accel, following $4.5m seed funding in November from AC Ventures, Global Founders Capital, Lightspeed Venture Partners and Goodwater Capital.

Another Indonesian entry on the list is Dropezy. Chandi Chainani and Nitesh Chellaram co-founded the fast-trading startup, offering 20-minute delivery of daily essentials and 24/7 fresh items. Catering to several areas in Greater Jakarta, the startup bagged $2 $.5 million in pre-Series A funding led by Forge Ventures.

social commerce

While fast commerce startups operate dark stores to get the fastest possible delivery, social commerce, on the other hand, relies on social media communities to drive sales.

Evermos is an example. Founded in 2018 by iqbal muslim and Andika Saputra, the Indonesian social commerce platform enables retailers and small businesses to sell halal products suitable for Muslim consumers. The company claims to have more than 600 brands on its platform with more than 500,000 resellers, mostly housewives and stay-at-home moms with no fixed income, who receive commissions from product sales. Evermos raised $38m in funding, including a $30m Series B led by UOB Venture Management in September 2021.

“Social and fast commerce is on the rise and has received a boost from the pandemic which has accelerated (digital) adoption and demand.” says Chandra Tjan, co-founder and general partner of Jakarta-based Alpha JWC Ventures.

“Over the past two years, amid lockdowns and security measures, many small businesses have been forced to get creative with selling their products,” he says, adding that fast trade is a plus. of the pandemic.

“Many had to work from home, and suddenly there was an increase in online shopping and delivery of products such as groceries and work-from-home peripherals that needed fast delivery,” adds- he. Tjan, who is one of the judges on this year’s list (in the Consumer Technology category) is also an investor in Aplikasi Super and Evermos. Although he has only bet on social trading so far, Tjan says he sees good potential in fast trading and is ready to invest in companies that offer exciting concepts.

Outside of Indonesia, rapid trade is also taking hold and attracting hundreds of millions of dollars in investment. Founded by computer science dropouts from Stanford Adit Palisha and Kaivalya Vohra in August 2021 India based fast trading company Zepto is almost a unicorn. Valued at $900 million after its last $200 million Series D round led by Y Combinator in May, the 10-minute delivery service claimed by Zepto is available in 11 cities in India and continues to grow.

To learn more about these innovative entrepreneurs, read our complete Retail & Ecommerce list here – and be sure to check out our full coverage of Forbes 30 Under 30 Asia here.

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