Tokopedia Launches Tokomart, “Online Grocery” Service with “Geo-Tagging” Technology

Tokopedia launches Tokomart, a special page using geo-tagging technology to help people buy groceries in the nearest area. Meanwhile, Tokomart is currently available in Jabodetabek and Bandung.

Tokopedia’s Senior Lead Merchant Development, Hartawan Lesmana said that the F&B category has become one of the most popular categories in Tokopedia over the past year with a threefold increase in transactions compared to the pre-pandemic period. Fresh products such as eggs, fish, instant noodles, tea, honey, and local coffee are the most popular among the community.

“Community’s high enthusiasm has inspired us to present Tokomart. We also collaborate with various strategic partners, including business players in Indonesia – from Hypermart, LotteMart, Sayurbox, to a number of local MSMEs from various industries – to provide more than 200 thousand product options on Tokomart,” he explained in an official statement, Wednesday (3/3).

This service is also supported by geo-tagging technology, therefore, business owners can reach the community faster as this technology prioritizes the closest seller from the buyer’s position. Business owners who join Tokomart are those who sell the food & beverage and health & beauty categories.

In the first phase, the latest innovation is available for users in the Greater Jakarta and Bandung areas. “We will continue to add other areas, therefore, this innovation can reach all citizens.”

In order to drive transactions, the company is currently holding promotional programs in the form of cashback, discounts, and free shipping.

Before Tokopedia, the grocery segment had been seriously explored by other e-commerce companies, such as Blibli and JD.id. There are also Gojek and Grab. They are working with FMCG brands, supermarkets, convenience stores, and shop owners to expand their coverage. Even Tokopedia’s closest competitor, Shopee, has launched Shopee Mart.

Blibli, for example, has developed BlibliMart since 2018 to accommodate daily shopping needs, while at the same time anticipating shifting behavior to online. In Blibli, it’s the second most popular category, after electronics in order and GMV. Since last year, Blibli has released the Subscription feature on BlibliMart.

The feature was created based on the Kantar survey “Understanding Life and Trends in Indonesia” in August 2020, it was stated that 80% of respondents became increasingly economical in managing finances due to Covid-19. More in the survey also stated, in meeting their daily needs, more than 60% of respondents are willing to try new shopping methods in order to get the most affordable price.

This market trend is the background for companies to release the Subscription feature, therefore, consumers can save money when shopping for primary needs.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Bukalapak Reportedly Aims for IPO, Enhancing Business Diversification

The news about a local unicorn planning for an IPO has spread, it’s coming to Bukalapak. According to a Bloomberg source, it started to explore the potential to go public on the IDX (at low shares), then continue to take it on the US stock exchange through the SPAC scheme. The company is said to be in discussion with several blank check companies and has started working with investment banks to explore.

Through SPAC, Bukalapak’s valuation is to reach $4-5 billion from the current value at $3.5 billion. Apart from Ant Group, GIC, and EMTEK Group, Bukalapak is supported by a number of investors and corporations including GIC, Naver Corp, Microsoft, and Standard Chartered. In Indonesia itself, according to research findings, Bukalapak is in third place after Shopee and Tokopedia – with an online marketplace high-tension competition with fast business dynamics.

In order to confirm, DailySocial is in contact with Bukapalak’s President, Teddy Oetomo. However, he avoids commenting on this matter. Meanwhile, the company representative said that after 11 years of operation, they are now focused on building a sustainable business to create a long-term impact on MSMEs and the Indonesian people through reliable online and online-to-offline platforms.

The news surfaced after Bukalapak’s CEO, Rachmat Kaimuddin said on an occasion, “We still want to be independent and run Bukalapak as a standalone company. IPO is an option to be able to obtain funds and technology companies will eventually want to IPO. We are open to that option and are now preparing the infrastructure.”

In his writing, Bukapak’s founder and former President Fajrin Rasyid signaled his support for Indonesian startups for an IPO. One thing he emphasized was that the net benefit for this country would be better if the IPO was conducted domestically, or at least a dual listing at home and abroad.

Business Diversification

Bukalapak is still on track to pursue profitability by exploring various sectors outside its core business as an e-commerce service. For example, through a subsidiary called Buka Investasi Bersama, it’s to deepen the mutual fund investment business, especially targeting the underserved. On a general note, this investment instrument is getting its momentum along with the increase in financial literacy of various circles of society.

Through the LinkedIn post, Bukalapak’s COO, Willix Halim published that his team was recruiting various strategic positions for a new business unit. He wrote that the ability to speak Tagalog (the native language of the Philippines) will be prioritized. Rumor has it that Bukalapak is trying to explore the Philippine market with a new business. We tried to confirm with Bukalapak regarding this issue, however, they avoid making further comments.

Business diversification is an important strategy in Bukalapak. Related to e-commerce supporting businesses, the stall partnership program “Mitra Bukalapak” has found quite strong performance – it is considered to be one of the most significant innovations. Throughout 2020, Rachmat said, the growth of this line will reach 50%. The business unit under the legal name “Buka Mitra Indonesia” has its own CEO, Howard Gani. Currently, Bukalapak has 100 million users with 7 million partners.

Bukalapak is the fourth unicorn that is reportedly taking the floor on the stock exchange. Previously, Gojek, Tokopedia, and Traveloka had been widely discussed regarding their plans for an IPO through SPAC. In addition to the rapidly growing business, currently, it is considered to be the right momentum to take this corporate action – considering market conditions and readiness.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Investree Thailand Obtains License, Optimizing SME’s Market Growth in Southeast Asia

The p2p lending startup Investree announced its expansion to Thailand after successfully obtaining a license from the Securities and Exchange Commission of Thailand (SEC) as of February 23, 2021. Investree Thailand will focus on providing more SMEs (underserved) with institutional financing access by connecting them with investors through the marketplace platform.

Investree Thailand’s Co-Founder Worakorn Sirijinda said, “We are very grateful for the approval and support from the SEC. This is the first step for Investree to provide innovative financing and service solutions for Thai SMEs that we hope will be able to contribute to the country’s economic recovery in a challenging situation like today.”

In Thailand and the Philippines, regulation is a bigger challenge due to distance constraints and limited knowledge and relations with the current regulators. In addition to the presence of a pandemic that has slowed down movement around the world, the crowdfunding permit process has been delayed for a while.

In addition, different situations and cultures in each country are quite a challenge in introducing new ideas of crowdfunding to the public. Therefore, to accelerate knowledge about the market and ecosystem, Investree focuses on collaborating with local partners.

Several well-known companies have collaborated, including Pantavanij, Thailand’s leading e-procurement platform, and B2B marketplace, 2C2P payment gateway provider, and FlowAccount, a provider of online billing and accounting solution software for small businesses, entrepreneurs, and freelancers.

Through this collaboration, Investree Thailand created several innovations. Together with Pantavanij, Investree provides supply chain financing to sellers and suppliers registered in the e-procurement system. Together with 2C2P, Investree utilizes technology and data to provide working capital financing facilities for 2C2P merchants. Still in line, Investree is also collaborating with FlowAccount to provide financing solutions for MSMEs on its platform.

Investree Thailand presents 2 (two) products, Bullet Payment Security and Installment Payment Security which have similarities with Invoice Financing and Working Capital Term Loan (WCTL) offered in Indonesia and the Philippines. For these two financing products, Investree offers various benefits for SMEs: interest rates based on a modern credit scoring model, fast funding, and transparent terms and fees.

“In our opinion, this partnership really helps Investree in channeling loans that focus more with measurable risks, therefore, they can maintain the stability of the Investree lending and borrowing business while exploring more collaboration opportunities with actors in other ecosystems,” Adrian said.

SME Market in Southeast Asia

Based on a study by the Asian Development Bank entitled “Asia Small and Medium-Sized Enterprise Monitor 2020”, MSMEs account for an average of 97% of all types/scales of enterprises, 69% of the total workforce, and 41% of the country’s gross domestic product (GDP) during 2010-2019. The Covid-19 pandemic in 2020 exacerbates the increasing global trade tension and economic uncertainty in the region. In many ways, MSMEs are the key to economic recovery in developing Asian countries.

Indonesia is a country in Southeast Asia with the largest number of MSMEs in the region with 64 million, followed by Thailand with 3.5 million and the Philippines with 1.2 million MSME units.

MSMEs are a major and important force to drive the Southeast Asian economy. This is 97 percent of the business world and absorbs 97 percent of the national workforce in the 2010 to 2019 period. MSMEs also contributed an average of 41 percent of the GDP of each country in the same period.

However, there are many business players still having difficulty with financial access. Many of them are deemed ineligible to borrow from a bank and do not have a credit history.

Fintech can make it easier for MSMEs to optimize the effectiveness and efficiency of business operations, also for MSMEs without sufficient requirements to access bank financing for working capital financing. Some of the players that offer similar solutions include KoinWorks, Modalku, and Amartha.

Previously, in 2019, Investree is available in Vietnam under the name eLoan, after which it continued to expand to the Philippines by partnering with the conglomerate company Filinvest Development Corporation (FDC) earlier this year. To date, Investree has successfully obtained a license to operate in 4 countries including Indonesia.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Observing Xendit’s Plans After Series B Funding Worth of 921 Billion Rupiah

A fintech company that provides solutions to simplify payment process for businesses, Xendit, plans to focus on building a financial transaction infrastructure in Indonesia. Xendit’s Co-Founder & CEO, Moses Lo told DailySocial his hope that the product ecosystem offers can help shape the next generation of scalable businesses.

“We want startups, SMEs, and other businesses to grow rapidly without having to worry about payment infrastructure, therefore, they can fully concentrate on more important matters. We always try to give our best by listening to feedback from merchants and trying to build products that suit their needs. them,” Moses said.

In order to present relevant technology, Xendit is currently developing a new product which is claimed to be very attractive and in accordance with the company’s goal of building a reliable digital payment infrastructure in Southeast Asia. This strategic step was taken to strengthen the foundation of the business.

“Our customers trust our payments and have asked us to create new tools that can help them during the pandemic and beyond,” Moses added.

Xendit also has plans to build more tools for SMEs to be able to do online business, including online merchants.

“Our customers have requested financing to bridge their cash flow needs for the following months. We provide capital to our customers with XenCapital. We are constantly building new products and services to help our customers (both large and small businesses) excel in this new world, both in Indonesia and the Philippines,” Moses said.

In the midst of Southeast Asia’s rapid digital transformation, Xendit has now processed more than 65 million transactions with payments of $6.5 billion per year. Regarding a future consolidation with relevant parties, Moses emphasized that Xendit is always open to the possibility of collaboration to improve service and product innovation.

“We expect this step can achieve the company’s goals, to build the most reliable digital payment infrastructure in Southeast Asia,” Moses said.

Apart from Xendit, there are also several payment system providers in Indonesia for startups or SMEs. One of the most significant is Midtrans, which is now part of the Gojek group. Doku, iPaymu, Finpay, and several other players also offer similar services. With the existing competitive map, product innovation is important in order to provide complementarity for its partners.

Series B Funding

In order to accelerate business growth, Xendit has just secured a series B funding worth $64.6 million or the equivalent of 921 billion Rupiah. This funding was led by global venture capital firm Accel. Overall, the companies have raised a total funding of $88 million or IDR 1.2 trillion.

“The fresh fund will be used to scale our digital payment infrastructure and provide millions of small and medium enterprises across Southeast Asia with the path to the digital economy,” Moses said.

Accel led the funding round as supported by Y Combinator. Previously, Xendit was the first Indonesian company selected to participate in the Y Combinator accelerator program in 2015 and was named one of the top 100 companies in 2021.

“Xendit has built a modern digital payment infrastructure that is changing the way Southeast Asian businesses transact. Their combined team of deep understanding of local markets and equipped with ambitions to dominate the global market place them in a strategic position to achieve what other companies in the region can’t do,” Accel’s Partner, Ryan Sweeney said.

–
Original article is in Indonesian, translated by Kristin Siagian

SiCepat Logistics Secures 2.4 Trillion Rupiah Series B Funding

Last-mile logistics player, SiCepat secured a Series B funding worth $170 million or 2.44 trillion Rupiah. The number is claimed to be the largest for the Series B stage in Southeast Asia. Investors in this round including Falcon House Partners, Kejora Capital, DEG (German Development Finance Institute), Asia-based insurer, MDI Ventures, Indies Capital, Pavilion Capital (a subsidiary of Temasek Holdings), Tri Hill, and Daiwa Securities. .

In DailySocial observation, SiCepat Ekspres had proceeded transactions of IDR 3.5 trillion during 2020, an increase of 194% compared to 2019 with a total shipment of 180 million packages throughout Indonesia.

Pandemic drives business growth

Increased business growth during the pandemic is the main reason for investor confidence in SiCepat. Sicepat is considered to be one of the few players providing logistics services for a new age economy providing e-commerce and social commerce transactions.

The fresh funds will be used by the company to tighten its position as a leading end-to-end logistics service provider in Indonesia and explore potential expansion into other markets in Southeast Asia.

“We are even better equipped to support and empower millions of SMEs and local businesses not only to survive but to thrive during these difficult times,” SiCepat’s Founder and CEO, Kim Hai said.

The company also plans to invest in infrastructure. SiCepat currently provides Last-mile, Warehousing & Fulfillment, Commerce-Enabling Services, Online Distribution, and Middle-Mile Logistics.

“The Indonesian e-commerce market will reach $32 billion in 2020 with a projected 5-year CAGR of 21% at $82 billion industry by 2025. We believe that SiCepat is ideally positioned to serve customers of the e-commerce giant,” Kejora Capital’s Founding Partner, Sebastian Togelang said.

In the previous interview with DailySocial, SiCepat will also enter into a new business in the food delivery segment.

–
Original article is in Indonesian, translated by Kristin Siagian

Payfazz Reveals 428 Billion Rupiah Investment for Payment Gateway Startup Xfers

Payfazz disclosed a strategic investment in Singapore-based payment gateway startup Xfers. Rumor has been circulating in the industry since May 2020, but Payfazz‘ CEO Hendra Kwik keeps denying it every time DailySocial tried to confirm.

On 19 May 2020, he said that currently, the two companies are solely business partners. Eventually, we found the Xfers logo attached under the Fazz Financial logo at the Payfazz office. However, on January 26, 2021, Hendra still denied the rumor.

Under Fazz Financial, there is also Modal Rakyat. In addition, investment also planted in Credibook which has recently received Pre-Series A funding.

Through the strategic investment, Payfazz and Xfers will become part of the newly formed entity, the Fazz Financial Group (FFG) to jointly achieve the mission of providing financial inclusion throughout Southeast Asia. This will be the first cross-border transaction between two fintech startups in Southeast Asia.

It is said that the investment value Payfazz has disbursed for Xfers was worth $30 million (more than 428 billion Rupiah). Also, Hendra will occupy the position of CEO of FFG, while Tianwei Liu will occupy the position of Deputy CEO. Robert Polana, Tiket.com’s former CFO also joined as FFG CFO.

This strategic move is expected to further encourage the two companies to expand their business in providing more collaborative services throughout Southeast Asia.

For the record, Hendra had first introduced Fazz Financial during an interview with DailySocial in February 2020, as Payfazz has performed various business expansions, therefore, a business group was formed.

Separately, in a virtual press conference today (4/3), Hendra said that both Payfazz and Xfers will have their respective identities in achieving their goals. Payfazz will focus first on the Indonesian market considering that there is still a lot of potentials.

Meanwhile, Xfers will function as a B2B service from FFG – focused on connecting external customers to the payment infrastructure and user network that FFG aggregates. Xfers will continue to focus on increasing presence in a number of countries in Southeast Asia, considering the company is available in three countries. Although it is possible that Payfazz will expand its business in the future.

“Imagine that is like Amazon is Payfazz and AWS is Xfers. AWS present in every building cloud infrastructure, while Amazon is only present in a handful of countries because these two things are different [in terms of challenges and regulations]. Independence is very important, we [Payfazz] ] did not want to limit their operations, nor did we have to follow Xfers’ strategy,” Hendra said.

He added whether Payfazz has the opportunity for regional expansion in the future, the process will indeed be easier as it can take advantage of the API infrastructure that Xfers has built.

The reason behind Payfazz’s interest to invest is actually motivated by the longstanding partnership between the two companies. In addition, they are both graduates of the Y Combinator accelerator program.

Hendra observes Xfers’ API technology really helps the integration process with B2B clients in targeting more unbanked people with financial services. Thus, the more B2B clients successfully signed up with Payfazz, of course, the more inclusive digital financial services are.

“Therefore, we [Payfazz] can focus on pursuing better growth because instead of building the API itself, the costs that should have been incurred, can be transferred to Xfers.”

Currently, Payfazz has 250 thousand registered agents serving more than 10 million unbanked people in Indonesia.

Xfers‘ presence in Indonesia began in 2016 after obtaining $2.5 million in seed funding led by Facebook’s Co-Founder, Eduardo Saverin, Golden Gate Ventures, 500 Startups, GMP Venture Partners, and Partech Ventures.

In 2019, they released Straits X, the first blockchain-supported initiative to advance the open finance ecosystem in Singapore powered by Zilliqa. Xfers’ Indonesian business partners are not only Payfazz, there are also Porter Indonesia, Faspay, Modal Rakyat, and Tunai Kita.

Tianwei said, in the second quarter of 2021, the company will launch two new products. First, a payment solution without integration targeted at merchants based in Singapore. Second, a single integration solution to connect companies/entrepreneurs with fintech expecting to enter Southeast Asia with local payment methods in the region. This is also supported by assistance to reach unbanked consumers.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Raena’s Target in Indonesia Post Series A Funding and Business Pivot

The impact of the pandemic can significantly drive startup businesses, especially for those who promote online services and trending products among communities. One that has experienced an increase during the pandemic is Raena. The platform helps promotional activities take advantage of social media influencers.

In order to increase traction, the company’s decided to pivot (in the sense of turning a business direction to widen market share), by providing integrated solutions not only for influencers but also for women who want to have additional income to become beauty entrepreneurs.

Raena’s Founder & CEO, Sreejita Deb revealed to DailySocial, from the beginning to the end of 2020, Raena’s new business line has experienced massive growth. One of the reasons is the increasing number of people who make online transactions during the pandemic.

“Even though many claims pivoting is something negative, for us, it is an opportunity for business to be more flexible. Previously, we only provide a platform to influencers, now, we want to provide a comprehensive solution for those who want to have their own business,” Sreejita said.

Raena’s new concept is social commerce, managing all the needs and processes that are usually performed by online sellers. Starting from managing stock of goods, suppliers, selecting brands, to logistics. For those who want to join Raena and want to become a seller, they can focus more on developing their number of followers on social media, WhatsApp, marketplace channels such as Shopee, Lazada, Tokopedia, and others.

“Previously, we have a one-to-one model that links one supplier to one influencer. Now, we offer a many-to-many model, which connects various brands and various suppliers to various influencers,” she added.

Series A funding

In order to massively grow business, Raena has completed a $9 million Series A fundraising activity led by Alpha Wave Incubation and Alpha JWC Ventures. Other investors involved in this year’s funding include AC Ventures, Beenext, Beenos, and Strive. In 2019, Raena secured $1.8 million in early-stage funding.

“To date, we have not spent too much money on marketing activities. That’s why we are not too aggressive in raising funds. Our focus is to increase the value of influencers or those who join Raena,” Sreejita said.

With this fresh fund, Raena’s future plans are to increase the number of sellers, increase the number of brands, and the internal team. Currently, Raena has a team consisting of 15 people in Indonesia. And until the end of next year, the number is planned to be increased. Raena also sees the Indonesian market as the main target.

Alpha JWC Ventures said the reason they were interested in investing was Raena’s vision to empower female entrepreneurs throughout Indonesia by opening access to high-quality beauty products. In addition, Raena is a solution for brands that expect to enter Southeast Asia, especially Indonesia, and for entrepreneurs who are looking for business consistency.

“By serving these two segments, Raena is entering a large market that continues to grow along with the growing middle class in Indonesia and Southeast Asia. With the expertise of Raena’s founding team and our support, we are confident that Raena can grow into a leading player in the Southeast Asian beauty industry,” Alpha JWC Ventures’ Co-founder & General Partner, Chandra Tjan said.

Previously, DailySocial had reviewed the beautytech trend in Indonesia, which is defined as a new model for actors in the beauty industry to reach consumers. Its business model no longer revolves around conventional distribution channels but combines the strengths of technology and digital.

Based on the Euromonitor report, the beauty market value in Indonesia was estimated to reach $8.46 billion in 2022, up from the estimated value in 2019 of $6.03 billion.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Supply Chain SaaS Startup Advotics Obtains Funding from East Ventures

Advotics as a SaaS supply chain startup for brands and SMEs, today (02/3) announced $2.75 million (nearly 40 billion Rupiah) funding led by East Ventures, the previous investor that also lead the seed round in May 2019. The fresh money will be used to expand the solutions to the SME market and added more sales teams.

Advotics provides SaaS solutions to support brands to understand, monitor, and manage their supply chain systems by providing an integrated platform across all distribution points.

Advotics’ Co-Founder & CEO, Boris Sanjaya said, Indonesia is a large market for technology solution businesses for corporations. The software market value in the country is estimated at $3 billion and this number will continue to grow as more companies move towards digitization.

“There are millions of manufacturing and distribution companies in Indonesia, from small companies to giant companies. We believe that the software market for corporations in Indonesia will continue to grow as more companies join the digital transformation trend,” he said in an official statement, Tuesday (2/3).

On the one hand, the current restrictions as an impact of the pandemic pose various challenges for companies that still depend entirely on officers on-site to monitor and manage distribution. These constraints made them realize the urgent need for a retail and distribution management system, a solution offered by Advotics.

Boris revealed that the company has collaborated with more than 70 companies engaged in various industrial sectors, such as FMCG, automotive, and construction materials. They come from the SME level to multinational corporations, including Exxonmobil, Danone, Reckitt Benckiser, Sampoerna, Kalbe, and Mulia Group.

Advotics has nine SaaS products that provide various solutions to be implemented for production, warehousing, and distribution stages. By using QR codes printed on product packaging, they assist brands in tracking the movement of goods at each distribution point, including information about sales team activity and stock vacancies. The company has also developed its system to include solutions for inventory, routing, and collection.

“Advotics is also able to provide solutions to supply chain problems that have long tortured the company in terms of warehouse operations, efficient delivery, and sales team delivery by utilizing advanced technology,” Jeffry Tani, Co-Founder & CPO Advotics added.

As previously mentioned, fresh funds will be used to expand the solutions to the SME market, by providing an integrated online-to-offline system. In addition, part of the remaining portion will be used to expand the company’s sales team.

Advotics Co-Founder & CTO Hendi Chandi said, the company is currently building a platform that connects brands with supply chain points that are outside the modern ecosystem. “Armed with our experience in providing practical solutions using the latest technology, we are confident that Advotics’ solutions are ready to use, easy to use, and always connected to help SMEs be more competitive.”

In his remarks, East Ventures’ Co-Founder & Managing Partner, Willson Cuaca, also gave his comments. “The Advotics team is not only able to survive amid the pandemic but is getting stronger. We are confident that this funding will accelerate the achievement of Advotics’ mission, to digitize Indonesia’s supply chain and distribution ecosystem.”

–
Original article is in Indonesian, translated by Kristin Siagian

Payfazz Launches New Feature to Support Online Sellers

The Covid-19 pandemic has shifted MSME sales channels which originally offline to online to minimize physical contact and mobility restrictions. Payfazz uses this opportunity to innovate by launching the “Warung Online” feature.

In addition, Payfazz is quite confident with the potential target market. According to BPS, around 11.7 million out of 64 million MSMEs have penetrated the digital ecosystem per May 2020. Therefore, there are currently more than 55.8 million or 87% MSMEs that are yet to digitize. This is an opportunity for startups to work on segments that is lack digital penetration.

Payfazz Brand Manager Safina Saleh explained, Warung Online is a development of a feature that was previously launched in August 2020, namely the Menu Alat Warung. In this feature, later orders from customers can be recorded directly in the Payfazz application.

“With the Warung Online feature, it is expected that Payfazz agents can reduce physical contact as well to expand the scope of their customers, therefore, the business can continue to grow and improve,” Safina said in an official statement, Friday (26/2).

Further explained, Warung Online allows agents to sell their merchandise online via a profile link on the Payfazz application. Agents can register their business for free through Payfazz and listed items to be sold, such as grocery, wholesale, clothing, food, beverages, and others that will be offered to customers.

Next, agents can share the link with their customers via social media platforms or text messages. Buyers can open the link to see the products from the agent’s shop and immediately order them online.

Separately contacted by DailySocial, Safina explained that the delivery and payment flow in the Warung Online feature can be adjusted according to the agreement of each buyer and seller. “This process takes place outside the Payfazz platform and the Warung Online features.”

Warung Online is expected to expand the reach of the business and increase the number of customers. She also ensures that agents do not have to worry about additional operational costs as the feature can be used by all agents for free.

Safira said that the number of agents using the Warung Tools Menu has reached more than 100 thousand and most of them come from Java & Sumatra Islands.

During 2020, the number of agents who have joined Payfazz has reached more than 1 million users. The most widely used features are PPOB Transactions, Warung Cashier Recording & Debt Logging.

The MSME digitization has been increasingly driven throughout the pandemic. Therefore, various initiatives have been created by various startups not only Payfazz, Grab, for example, is working with startups such as Warung Pintar to list agents into GrabMart, therefore, it’ll expand the business reach.

–
Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

Podcast Popularity to Mark the Rise of Voice Based Content Industry in Indonesia

Voice-based content has existed before the internet, through the radio. As technology advanced, now voice-based content has evolved into on-demand content accessible through platforms.

One of those is the podcast or web podcast, which has become popular in recent years. Podcasts are serialized sound-based content that can be downloaded on your device. The term podcast or a combination of the words “iPod” and “broadcasting” was born along with the birth of this Apple device in 2001. Referring to Podcast Hosting data, there are 1.75 million podcast broadcasts in the world with 43 million episodes as of February 2021.

Now, voice-based content is transformed into on-demand content and available on various platforms, such as Apple Podcast, Spotify, Google Play Music, and Anchor. Not only on-demand, but the audio-based platforms Clubhouse is also gaining popularity among users in Indonesia.

Clubhouse is actually an audio-chat-based social media application that allows users to discuss various topics with other users. Exclusively, this application is to deliver a podcast format, but live. Then, how is the Indonesian market’s acknowledgment of voice-based content?

Podcast to lead the media landscape

Based on the information from several sources, there are some reasons why podcast is dominating the media landscape in a few countries, including Indonesia. First, podcast comes in a format that allows listeners to do other activities or multitask. This situation is different while enjoying video, e-book, or image based content,

In terms of consumers, this format is considered fine to take up their busy lives. The diversity of podcasts have the ability to build a community with the same preferences.

These factors are considered relevant for the Indonesian market. Referring to Podcast User Research in Indonesia in 2018, content variation and flexibility are two big reasons why consumers listen to this digital-based audio content.

Sumber Podcast User Research in Indonesia 2018 / DailySocial — Source: Podcast User Research in Indonesia 2018 / DailySocial

In addition, the smartphone’s existence is one of the driving factors why podcasts have paved the way from specialized media to become mainstream media. What we know is that podcast content is only available in certain media, such as iPods, media players, and desktops/laptops.

According to Grand View Research, low storage space, internet connection, and the limited media to access podcasts at that time hindered the growth of this industry. Now, smartphones with high-bandwidth internet connections are starting to empower the industry.

Trend of local podcast platform

The global podcast market value is estimated at $9.28 billion in 2019 and is predicted to reach $11.7 billion in 2020 according to Grand View Research data. In Indonesia, the number of content and listeners is still dominated by foreign platforms, such as Spotify and Google Podcast.

At least, this refers to Podcast User Research in Indonesia data in 2018, where Spotify (52.02%) was recorded as the most popular platform for podcast. However, Inspigo is actually included as the only local player in the top 10.

This indicates the development of the local podcast platform awareness. The podcast growth trend in Indonesia has also encouraged a number of business players to develop similar platforms, such as Noice and PodMe.

Inspigo was launched in October 2017, but the platform was released to the public in April 2018. Meanwhile, Inspigo offers various packaged audio content, ranging from on-demand content, talk shows, and interactive sessions.

Meanwhile, Noice was launched in 2018 under PT Mahaka Radio Digital, a joint venture company formed by PT Mahaka Radio Integra Tbk (MARI) and PT Quatro Kreasi Indonesia. Quatro is a consortium of four recording companies in Indonesia, including Musica, Aquarius, My Music, and Trinity.

Finally, PodMe was developed by a media conglomerate, the Media Group. The PodMe platform was released in October 2019 and offers a number of on-demand audio content, such as comedy, business, and the Kick Andy program.

Mahaka Radio’s President Director, Adrian Syarkawie revealed that Noice, which was originally developed as a streaming radio platform, was deemed insufficient to meet the growing market needs. In fact, on-demand content is considered to be growing rapidly in a number of countries, including Indonesia.

“If only from streaming radio alone, it seems [lacking] for digital applications. Moreover, people can still hear radio from other media. So, we are looking forward to what will be attractive to consumers through this application, and so we enter the podcast content, “he said to DailySocial.

In addition, on-demand audio content is getting highlighted by investors as an interesting digital business trend in the future. For example, Kopi Kenangan’s CEO and Co-founder, Edward Tirtanata, who recently announced as an angel investor through his fund, Kenangan Kapital, is reportedly going to invest in one of the local podcast platforms.

Although it is yet to be confirmed, Edward had mentioned in an interview with DailySocial that Indonesia demands more disruption in the consumer tech segment. In his observation, the products/services of this segment are still underrated in terms of technology.

Monetization hitch

Regardless, in any format, on-demand content will always lead to one big challenge, on how to monetize the business model. In general, on-demand content relies on two schemes, advertising and subscription systems.

The second option is quite attractive for platform providers to gain revenue. As long as customers can see/enjoy the value provided, they will continue to pay. Unfortunately, this option is considered difficult for the Indonesian market with a lack of willingness to pay.

Even Spotify, which has gone public, has to make a bet on making podcast content as its way to profitability. Referring to Spotify data in Indonesia, this strategy is actually make sense.

Spotify spotted that Indonesia is dominating podcast consumption in Southeast Asia in 2020. Around 20% of the total Spotify users in Indonesia listen to podcasts every month, and this number is higher than the global average percentage.

Spotify’s Head of Studios for Southeast Asia, Carl Zuzarte said that Indonesian podcast listeners have their own characteristics, the majority like content to listen to at night before bed. The consumption rate has increased in recent months, especially during the PSBB.

Meanwhile, in terms of podcasters, Box2Box ID’s Co-founder, Tio Prasetyo , also acknowledged the challenges of monetization. He said, podcasters still rely on revenue from brand-sponsored content. In this case, clients generally have an entire episode broadcast for their own promotion, similar to radio.

“The difference is, compared to radio, we can provide more accurate data, such as the number of listeners in real-time and reach to clients,” Utomo said as quoted from krAsia.

Utomo said podcasters are to raise additional income with other models, such as speaking at offline events or distributing broadcast material on podcast platforms for paid campaigns.

–
Original article is in Indonesian, translated by Kristin Siagian