Practicing the New Normal for Fintech Lending Business

The pandemic effect on most business sectors also lies in the fintech lending industry, which must prepare a number of initiatives to prevent default on its borrowers. Fintech players are required to prepare themselves for “the new normal”.

To discuss this topic, DailySocial invited CMO KoinWorks Jonathan Bryan as the speaker for the #SelasaStartup first week edition of May 2020.

KoinWorks is one of the pioneers of fintech p2p lending startups in Indonesia. In February 2020, the company announced new funding in two schemes, loans and equity with a total value of $20 million or equivalent to 316 billion Rupiah.

Here’s the summary:

Credit restructuring

Following the regulator instruction, KoinWorks also applied credit restructuring for borrowers affected by the pandemic. However, the relaxation cannot be used equally for all borrowers. Indeed, platform players cannot act like banks.

They’re positioned between borrowers and lenders. Platform players position themselves to help businesses run still and not to cause a loss for lenders.

The Borrower must present data to demonstrate the validity that the business is really affected by Covid-19. Whether it’s from a bank book report, if they are in the form of an offline business, it can show the closing store.

“The business must not end, what we build is adjusting the schedule to the borrowers by extending the tenor. It aims to ensure that the business can pay and survive,” he explained.

More selective and exploring other business potential

Jonathan continued that one of the products available at KoinWorks is loans for online sellers. This line still shows a positive trend as in the previous year.

The trend of increasing loan demand usually occurs at the beginning of the year, both when one e-commerce celebrates its anniversary, the Eid moment, and as we enter the year-end moment and national online shopping day (harbolnas).

Towards that moment, there will be a significant increase in loans about two to three months before. The seller needed loans to stock up when there’s a massive purchase.

“The increase [in loans] can be 1-2 times [year-on-year] in high season, especially during Eid. This year, we are tightening up, as giving to the most affected segments of Covid-19 such as tourism. We’ve done some mapping.”

Prepare for the new normal in fintech

When restructuring and scoring are tightened, the final step is to anticipate the second wave of the pandemic impact. From the results of the company’s internal research, Jonathan said there are many findings that can be drawn from the investment climate in various developed countries.

“In our opinion, this pandemic is to end after Eid. However, it is the second wave we feared because of its easy spread. After entering the recovery phase, there are strategies on how to be defensive and aggressive. Therefore, you have to pick the right battle for each business.”

When the recovery time is done, it’s time to return to the initial mission, which is to help SME businesses grow more aggressively. “All businesses that make it past the post-pandemic, can be sure to get up and jump for multiple times for it has passed the worst part. That is what we want to provide, it might be until the end of this year the recovery will take time,” he concluded.

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Original article is in Indonesian, translated by Kristin Siagian

Bagirata as Crowdfunding-based Solidarity Platform for Employees

The current pandemic situation has shown new sides of the country’s economy. Business shut down, employees laid off, and informal sector workers struggled to survive. Bagirata, an initiative as a technology platform emerged with a mission to mitigate the impact of Covid-19 on workers in this pandemic season.

On its official website, Bagirata claims to be a peer-to-peer redistribution of wealth. The Bagirata Platform facilitates the collection of funds from workers who are still earning to those who are no longer income due to Covid-19.

However, Bagirata focused its support on workers in specific sectors, such as the service sector, tourism, hospitality, creative industries, arts & culture, and workers in the gig economy. These are the main criteria for those who want to use Bagirata facilities.

“In fact, I myself am a hospitality worker who was forced to take unpaid leave because of this pandemic, while some of our friends can still earn a living while working from home. Then, why don’t we try to bridge this situation to the wider community. We started from this concern and what is happening around us,” Ivy Vania, one of the Bagirata initiators told DailySocial.

Halaman utama situs web platform Bagirata. — Bagirata website’s main page

Bagirata works somehow resembles another crowdfunding platform, such as Kitabisa. The difference is, this initiative is purely acting as a means of mutual support between workers. The way this platform works is simple. Bagirata, which is optimized for mobile web display, provides two options, participating as a fund donor or recipient. When you choose as the first, Bagirata offered ten potential fund recipients. After choosing, users can directly send their donations through Gopay, DANA, and Jenius, therefore, the money will not flow through this platform. Bagirata also does not limit the nominal submitted by the recipient or donor.

“The greater the minimum funds raised, the longer the time needed. Unless there is a certain level of compatibility between the fund donor and the recipient making it possible to send a larger amount of funds,” Ivy added.

On Monday (4/5), there were more than 1500 people applying as fund recipients, 950 of whom passed verification, and 95 people successfully met their needs through this platform. Regarding the eligibility of prospective recipients, Bagirata applied three layers of verification. First, the data and information, synchronized with Bagirata, and eligibility evaluation using a scoring system. These three steps come with a ‘Report’ button for those who want to do the eligibility test for the recipient.

During this pandemic, economic inequality was increasingly rising. Without a steady income, workers who qualify in Bagirata are in a very vulnerable position. The Ministry of Manpower said there were more than 2 million experienced layoffs (PHK) due to Covid-19. The Indonesian Chamber of Commerce (Kadin) even estimates that the number of people laid off during the pandemic has reached 15 million. The number was figured as we include those workers in the MSME sector.

The government as the highest authority is considered not strong enough to overcome this alone. The pre-employment card program for example. Previously, the program was aimed at providing skills to prospective young workers but the plague forced the government to turn it into a semi-social assistance program. The program was deemed improper because the public needed more cash to make a living.

Solidarity is a keyword as Ivy, Lody Andrian, Rheza Boge, and Elham Arrazag used when creating this platform. The principle of helping others, she said, is more common abroad because there are trade unions almost in every industry. “However, in Indonesia, not all workers have a union, and usually the union is more focused on advocacy. Therefore, we want all employees registered in Bagirata can help each other even though it is cross-industry,” she said.

To date, the number of fund donors and recipients in Bagirata continues to grow. In order to reach more employees, Bagirata is now developing an organization-to-organization system. This is exemplified by their collaboration with the Media Workers and Creative Industries Union (Sindikasi). Later, Bagirata is to create sub-domains for registered organizations, therefore, they can replicate the Bagirata system as a temporary safety net for their members.

“However, we’ve also been in contact with several other organizations, such as the Indonesian Art Coalition and M Bloc, which indeed have previously operated and have their own databases,” Ivy said.

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Original article is in Indonesian, translated by Kristin Siagian

Donald Wihardja Serves as The New CEO of MDI Ventures

Previously a Partner in Convergence Ventures, which recently rebrands into AC Ventures after the merger with Agaeti Ventures, Donald Wihardja has officially appointed as the CEO of MDI Ventures, signing up for the 9-month vacant position since the predecessor left. In general note, this position was previously occupied by Nicko Widjaja who is now leading the BRI Ventures.

As Donald making his entrance, Aldi Adrian Hartanto now serves as VP of Investments at MDI Ventures.

As MDI Ventures’ VP of investments, Aldi Adrian Hartanto told KrAsia, Donald Wihardja’s experience in terms of investment and running a business should add up more colors to the investment style and culture of the next-generation MDI Ventures.

He added, in the next few years, the main objective of MDI Ventures is to remain the same, which is in line with the vision of being a VC that focuses on top multi-stage funding in Southeast Asia.

It is hoped that Donald and his team can help to accelerate fundraising activities, so as to create an independent funding association, as well as support and strengthen the organization. In 2019 MDI Ventures successfully made 5 exits, with 3 acquisitions and 2 IPOs.

New managed funds

This year, MDI Ventures will soon add two new managed funds to strengthen Telkom Group’s startup investment portfolio from the early stage to the later stage. MDI Ventures’ Managing Partner, Kenneth Li revealed to DailySocial that the add-up was due to their four-year first-round allocation is running out.

In early December 2019, Telkom Group through MDI Ventures and KB Financial Group from South Korea also formed a new managed fund called Centauri Fund. Tracing back, in mid-2019, a subsidiary in Telkomsel’s cellular business formed a new investment unit, namely Telkomsel Mitra Innovation (TMI) which also be managed by MDI Ventures.

Investment blocks in 2020

The pandemic has caused shifting in many business strategies, even so with investment strategies. In a number of interviews with venture capitalists, we received a lot of insights about Indonesia’s investment prediction to declining in 2020. Although some investors are convinced they will not delay any existing plans.

Kenneth said, there will be adjustments to investment activities. However, he estimates that there will be investors who take advantage of this situation to find startup portfolios whose valuations can be discounted, especially, investors with a strong cash reserve.

“We do not view investment plans from market aggressiveness, but startups that will succeed in the future. However, the investment depends on how investors determine their hypotheses. I am sure that VCs with new funds and good track records can survive in this situation,” he said.

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Original article is in Indonesian, translated by Kristin Siagian

Airy to Shut Down Business Permanently, Putting other OTAs in Jeopardy

Such unfortunate news came from the local OTA (Online Travel Agency) industry. Airy or Airy Rooms will terminate its operations permanently by the end of May 2020. We receive the news from a source involved in the company’s operations. It was later discovered that several property partners had received official notification emails regarding the service termination.

DailySocial has been trying to reach the management since Wednesday (5/6), yet the information still sealed – although they didn’t deny the rumor.

The layoff situation has gone wild in the Airy ecosystem, the number is monitored through SEAcosystem.com – a collaborative worksheet initiated by some Southeast Asia’s venture capitalists to help affected talents and startups due to Covid-19. A reliable source has confirmed the layoff.

In addition, as we observed, Airy is currently not displaying any property listings after May 31st, 2020. It applies to the flight ticket, there will be no search results as per June 1st, 2020.

Since the beginning of the year, when the Covid-19 pandemic began to haunt the Southeast Asian region, there was a sharp decline for Airy service users. Exacerbated by the lockdown and physical distancing initiatives in almost all countries resulting in the declining number of traveling (out of town or abroad).

As general notes, in addition to offering low-cost lodging accommodations, Airy also provides a flight ticket booking feature.

Penurunan trafik kunjungan situs Airy, di platform dekstop dan mobile / Similarweb — The declining number of Airy’s traffic, in PC and mobile platform / Similarweb

Earlier this year, the company had a succession by appointing Louis Alfonso Kodoatie as the new CEO. With 30 thousand rooms spread across 100 cities, they are confident enough to continue to penetrate the market. Particularly, after launching Airy for Business at the end of last year as a new initiative offering online services for company official travel management.

All OTAs afflicted, no exception

Last month, a news spread regarding Traveloka’s significant staff reduction. The temporary halt of inter-city public transportation modes, such as planes and trains, certainly has an impact on the decline in company revenue. Nearly zero tourist visits also make bookings for accommodation services such as hotels or recreation tickets drop sharply.

Penurunan trafik kunjungan situs Traveloka, di platform dekstop dan mobile / Similarweb — The declining traffic of Traveloka’s site, in PC and mobile platform / Similarweb

Unlike Airy, Traveloka’s unicorn status ideally provides a longer runway. Particularly since last year, the company has been intensifying fundraising up to 7 trillion Rupiah. It was said by Co-Founder & CEO Ferry Unardi that the startup he founded was planned to take dual IPO listings in the next 2-3 years – it was before the pandemic.

Observing the current conditions, the Center of Reform on Economics (CORE) member, Yusuf Rendy Manilet told DailySocial that he believes all OTA players in Indonesia are devastated by Covid-19. However, Yusuf did not see this as hopeless.

“In my opinion, they can explore domestic tourists with more local potential, like culinary tourism,” Yusuf said.

A Traveloka representative, who was contacted separately, said he was concerned about the situation. But they refused to break down the whole impact. “Currently, our focus is to prioritize the safety and comfort of users in planning their trips,” Traveloka’s Head of Marketing, Transport, Andhini Putri said.

Pegipegi also facing a similar issue. The company’s response is not much different. They are still busy accommodating the needs of travelers who use their services, including in canceling reservations. “Currently, for customers who want to cancel their order, it can be done easily through the Pegipegi application using the Online Refund feature,” Pegipegi’s Corporate Communications Manager, Busyra Oryza told Dailysocial.

OTA in Indonesia

The local OTA business is filled with local and outside players, however, from the previous year’s trends, local players have a larger share of users. Of the many players, five of them have the biggest traction, including Traveloka, Pegipegi, Tiket, Airy, and Nusatrip.

Platform OTA lokal populer di Indonesia / DSResearch — Most popular local OTA platforms in Indonesia / DSResearch

The e-Conomy SEA 2019 report also shows that online travel is still the second most influential digital sector after e-commerce. In 2019 the industry recorded GMV at US$10 billion and is projected to grow to US$25 billion in the next five years.

The situation could change, after the end of the pandemic, “new normal” will be a challenge in all business sectors. In order to stay in the game while reaching its highest potential, every business must be able to adapt and innovate, including travel. The good thing is that this industry has grown rapidly, OTA players are no longer just about ticketing. More than that, each is transformed into a service with a variety of integrated features.

This is about how companies survive. Basically, traveling is a necessity, both for personal and business interests. When the dust settles, sooner or later, this sector will return to its pace.

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Original article is in Indonesian, translated by Kristin Siagian

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Cashlez Officially IPO, Creating Opportunities for Other Acquisitions

The payment gateway and mPOS startup, Cashlez, officially going IPO at the Indonesia Stock Exchange yesterday (4/5) using “CASH” as the stock code. Cashlez is listed on the acceleration board, as well as being the 27th company to be trading on the stock exchange this year.

The company releases 250 million new shares at Rp 350 per share. This capital amount covers around 17.5 percent of the agreed capital and is placed in Cashlez. Simultaneously, the company issued Series I Warrants at a ratio of 1: 1.

Cashlez’ President Director, Tee Teddy Setiawan said the company successfully obtained funding worth of Rp87.5 billion on this occasion. As planned, 61.31% of the funds were used for the acquisition of PT Softorb Technology Indonesia (STI), with the remaining 38.69% for working capital.

“Through this IPO, we can continue to innovate in developing business and one of them is the acquisition of STI which we consider is very strategic for our business growth,” he said in an official statement.

As quoted from his interview with IDX Channel, Teddy mentioned, besides the acquisition of STI, he also offers opportunities to take other corporate actions. “We are still looking for opportunities for the acquisition of similar companies to support inorganic growth.”

He continued, the due diligence process for the STI acquisition had begun since last year. The two sides started open discussions for future business synergies, given the huge potential of the payment system industry in Indonesia.

Entering the second half of last year, the company starts taking an option to IPO on the stock exchange, moreover, the company also participated in IDX Incubator. “We are encouraged to take the IPO initiative, especially with the current new board [acceleration board], we finally decided to take on the exchange.”

Fundamentally, STI has a strong and stable business base, compared to Cashlez as a startup. STI focuses on the front end, while Cashlez focuses on the back end. They need a front-end that can create innovation, for example by combining sensors with non-cash payment instruments such as cards.

“We are starting to enter the [payment] segment of transportation, prepaid cards, parking, and theme parks,” he continued.

To date, Cashlez is said to cover more than 7,300 merchants consisting of small, medium, to enterprises. However, 88% of them are dominated by SMEs.

Adjustment to the target

Even though the funds will be used in accordance with the original plan, the nominal funds targeted by Cashlez has adjusted. Previously, the company was targeting Rp90 billion to Rp100 billion by releasing 300 million shares of regular stock. The offer price is at Rp298-Rp358 per share. The date of the listing on the IDX was planned for April 20, 2020.

Teddy revealed that the adjustment occurred because of structural changes. Earlier this year, they began with unfavorable issue from Jiwasraya, then the Covid-19 pandemic emerged in March. Finally, it must’ve had an impact on several prospective investors and their commitment to enter, eventually changing their minds.

“However, since everything is back to normal, this is good timing to start fresh.”

In addition, regarding the company’s target this year, Teddy said he has yet made a revision. However, he currently opens for the possibility that a correction would occur in the second quarter of this year. the Cashlez business as a whole is targeted to increase by 2.5 to 3 times from last year.

“In March 2020 we still have our positive performance. The Covid-19 has affected on our business, related to PSBB, it is practically all business down almost 80%. We have to be more creative in catering to online transactions. ”

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Original article is in Indonesian, translated by Kristin Siagian

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GudangAda Notches 372 Billion Rupiah Worth of Series A Funding

After securing seed funding last February 2020, GudangAda B2B marketplace platform for FMCG products today (5/5) has announced another round. In this series A, the firm managed to bag funding worth of US$25.4 million, or around 372 billion Rupiah. This round was led by Sequoia India and Alpha JWC Ventures, with the participation of Wavemaker Partners. The company is to develop a new line ob business and build up the internal team.

The platform provides a place for FMCG industry players to meet and conduct transactions online, from suppliers, distributors to retail traders. This warehouse provides an opportunity for traders to develop their business through faster inventory turns, optimal pricing, greater choice of goods and business partners, and transparent transaction management.

GudangAda is said to succeed in connecting around 50 thousand traders in 500 cities, and covering almost 100 percent of FMCG wholesalers in Indonesia, through an enabler approach.

Previously, GudangAda received seed funding from Alpha JWC Ventures and Wavemaker Partners, with participation from Pavilion Capital, valued at US$10.5 million or around 154 billion Rupiah. With this series A funding, the company has managed to get total funding of US$ 36 million within 15 months since it was founded.

“When we first invested in GudangAda and Stevensang, we knew that they would become leading players in the FMCG industry, not only in Indonesia but also in Southeast Asia […] FMCG is an industry that is still running traditionally and is also difficult to break down innovation. It’s not easy to change habits and behavior, especially those that have been going on for decades. However, GudangAda claims that it is possible as long as the players know where to penetrate, what kind of difficulties, and how to execute the strategy effectively,” Alpha JWC Ventures’ Managing Partner, Chandra Tjan said.

In fact, there are some existing startups with similar services beforehand, making it easy for business partners to complete basic standards. Previously, there was Stoqo who served similar services targeting partners from food businesses. Unfortunately, they had to announce service termination earlier this year. In addition, there are other players such as Foodia, Eden Farm, Wahyoo, and many more serves different specializations – with the same core, becoming a hub for business players with merchants.

Momentum amid pandemic

Stevensang GudangAda — GudangAda’s Founder and CEO, Stevensang

GudangAda was founded in the end of 2018 by Stevensang (CEO) with 25 years of experience in the FMGC industry. In an interview with DailySocial he said, “GudangAda was founded due to his concerns over the continuity of the traditional shop business in the digital age. The business concept is to empower all parties involved in the ecosystem, therefore, they can get optimal benefits from the platform.”

Amid the Covid-19 pandemic, GudangAda has gained momentum to expand. The physical distancing situation has put the online-based solutions as an alternative to fulfill the demand of FMGC products – as to ensure the availability of food and other daily needs, and help industry players to continue to run optimally during the PSBB period in some areas.

“B2B supply chains in many developing countries face challenges in terms of capital constraints, ineffective inventory management, and manual operational processes. GudangAda built a digital ecosystem that can change the face of the Indonesian FMCG industry which is currently still running traditionally […] Indonesia will witness the emergence and development of the use of B2B technology in the second e-commerce wave, and we are very pleased for the opportunity to work with GudangAda in this trip,” Managing Director of Sequoia Capital (India) Singapore, Abheek Anand said.

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Original article is in Indonesian, translated by Kristin Siagian

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GoKampus Comes with Educational Support Services for Students

The education technology industry (edtech) in Indonesia has encouraged various kinds of services. Another one rises with new innovation called GoKampus. The service founded by Nathanael Santoso and Jeganathan Sethu is developing an education ecosystem that facilitates students with university inquiries.

GoKampus’ CEO, Santoso told DailySocial that they have full commitment to provide services to facilitate students in more effective way, particularly for non-academic activities.

Was founded in December 2018, GoKampus has made it possible to register for lectures online, looking for scholarships, applying for college funding, managing campus events, and also a system that connects with companies for internships.

To date, GoKampus claims to have collaborated with 150 universities, 10 of which are abroad universities. In terms of users or students, there are a total of 145 thousand registered users.

“We collaborate with universities, students, and various related parties such as foundations, corporations, fintechs, and individuals to create a sustainable and mutual edtech ecosystem. It is by connecting related players in one place in order to present educational solutions,” Susanto said.

At the current stage, GoKampus is supported by several investors, including Sovereign’s Capital, EverHaus, Azure Ventures, and several angel investors.

Partnerships for better services

GoKampus has the ambition to be a complete platform instead of limited to features but also collaboration. In terms of educational funding, they have collaborated with some players in the education loan services sector such as KoinWorks, DanaCita, and Pintek. They are also actively exploring partnerships with other related parties, such as banking. In terms of features, instant registration becomes the leading one.

“The latest feature has launched since February 2020, we present an Instant Approval program for students to be able to get instant access to selected well-known campuses. Through this program, students only have to upload report cards and later get a letter of university acceptance instantly whether they meet the minimum criteria. (maximum 1 hour),” he continued.

The Covid-19 pandemic which limits the mobility of many people seems to be used properly by GoKampus to convince users that their services can be trusted to register for college.

“We started holding virtual counseling for students to get services around lectures or careers. We also work together to present Campus Webinars with various parties to educate students amid the study from home situations. Together with GoKampus, campus life can be easier, more productive, and enjoyable,” Susanto said.

In terms of the business model, Susanto said they take fees for the B2B service. This year, they are targeting to work with 300 to 400 campuses with 300 thousand registered users.

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Original article is in Indonesian, translated by Kristin Siagian

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BukuKas Provides Bookkeeping Digital Platform for Fellow SMEs

There is a trend that circulates Indonesian startup industry for the past two years. It is the rise of services aimed at SME’s sector. The objective, in addition to transformation, is also to build a capable ecosystem to improve the SME sector. One of the startups is BukuKas. The company founded by Krishnan Menon offers a service that is ready to empower SMEs through improving financial records.

After his return to India to accompany his ailing father, Menon finally decided to start over a career in the Indonesian startup industry with BukuKas in August 2019.

Along with his travel to cities such as Tuban, Cirebon, Jepara, etc. he learned that technology is yet to cover all SMEs. Then, he began designing BukuKas to try to digitize SMEs through financial records.

Aside from financial records using paper and unorganized, most SMEs also lose track of the profits and cash flow of the transaction. It has sparked an idea to develop applications that can record their business cash flow, in a simple and easy way.

“I see the SME sector is full of potential and benefits if we can help them with simple technological solutions and encourage the business to shift into digital and financial ecosystems. Our mission is to help millions of SMEs and through that bring a huge positive impact on their business, the country, and ecosystem,” Menon said.

Menon is quite confident in what he and the team develop. He said, after successfully digitizing SMEs, their business can gradually connect to the formal banking sector through partnerships and so on.

Gaining lots of support

Within almost a year of operation, BukuKas has received a lot of support from investors. As for Krishan’s statement, they currently supported by Sequoia Capital (Surge), Credit Saison, 500 Startups, and several other investors. BukuKas is also supported by more than 20 angle investors, including Christian Sutardi, Filippo Lombardi, Edward Tirtanata, James Pranoto, and Guillem Segarra.

“The fact that many good investors and business leaders put their trust in us is a humbling experience. It also encouraged us to work 10 times harder to repay their belief in our mission,” he added.

Currently, BukuKas provides its services for free. The presence of BukuKas in Indonesia provides additional options for SMEs to manage their business digitally. Aside from BukuKas, there are also BukuWarung with similar services. Both founded in 2019 BukuWarung is supported by East Ventures, AC Ventures, Golden Gate Ventures, and others.

Business during Covid-19 pandemic

The Covid-19 pandemic has affected lots of parties, including BukuKas and its merchants. Menon said the team has tried to help their merchants to the maximum extent by promoting their businesses the affected business through BukuKas’ social media. The company also holds free English classes to improve skills, including actively discussing with existing merchants.

“Merchants who use our platform have increased by 50% since the beginning of Covid-19 four weeks ago. We believe this is because BukuKas helps business owners manage their money better during these difficult times,” he said.

Sailing through 2020, BukuKas has set three main focuses on enhancing the merchant experience in using their platform, adding a number of useful key features, and helping merchants to deal with this pandemic.

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Original article is in Indonesian, translated by Kristin Siagian

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[Weekly Updates] Bukalapak’s Co-Founders Start Investing into Startups; Funding News From Qoala; and More

Two Bukalapak Co-Founders have initiated Init-6, a new venture capital in town. Its first investment is a seed funding for Eduka, an edtech company. Moreover, Qoala has bagged a $13.5 million Series A funding from a group of investors led by Centauri Fund, a new fund from MDI Ventures and Kookmin Bank Korea.

In other news, Stoqo is the latest startup to close its operation due to current situation. While Moka, recently acquired by Gojek, is committed to remain independent entity and embracing other platforms, including Gojek’s competitors.

Achmad Zaky’s New Investment Firm Init-6, Debuts with Seed Funding for Eduka

Bukalapak’s Co-founder and Founding Partner Init-6, Achmad Zaky announced the new investment firm focused on investment to early-stage startups. Bukalapak’s Co-founder, Nugroho Herucahyono also participated as Partner after resigned as the CTO. Init-6 debuts with its first investment to the edtech platform Eduka.

Init-6 will focus on investing in early-stage startups without specific sector preferences

Qoala Bags 209 Billion Rupiah in Series A Funding

Qoala, an insurtech platform founded by Harshet Lunani and Tommy Martin, has secured Series A funding worth of $13.5 million or around 209 billion Rupiah. The current round is led by Centauri Fund.

Several new investors are also participated, including Sequoia India, Flourish Ventures, Kookmin Bank Investments, Mirae Asset Venture Investment, and Mirae Asset Sekuritas.

The company is to use fresh money to invest further in technology, HR and brands to support the company’s strategy in providing better services to customers, platform partners, and insurance companies. Qoala targets to employ 300 talents by the year 2021.

Stoqo’s Shutdown and Survival Strategy for B2B Commerce

Following the pandemic situation, Stoqo, a B2B commerce platform that provided fresh supplies for restaurant, has announced an operational shutdown. The company received Series A funding from Monk’s Hill Partners and Accel Partners India at the end of December 2018.

PHRI’s Deputy Chairman for the Restaurant Emil Arifin estimates that the culinary business in Indonesia has loss around Rp2.5 trillion per month with 200,000 people losing their jobs.

Moka Remains an Open Platform Post Gojek Acquisition

Following recent acquisition by Gojek, Moka will continue to operate as an independent entity with the Gojek merchant ecosystem’s integration. The ecosystem consists of GoBiz (the super app that houses GoFood), GoPay, and other services such as Midtrans and Spots.

Moka will remain an open platform and are very open to continuing collaboration with all partners. The company allows merchants to receive payments from variety of digital wallets, such as GoPay, Ovo, Dana, and others.

Dana Introduces Home Shopping Feature, Adjusting to the Pandemic Situation

Dana digital payment platform has introduced a home shopping service that allows users to shop for goods, food and beverages from merchants through the application. Furthermore, the order will be delivered directly to the designated address. This service is one of the initiatives in response to physical distancing and PSBB policies that directly impact sellers or merchants.

“One of the most impacted by the pandemic is the food and beverage industry which experienced a very significant decrease in income in almost all locations in Indonesia. Affected parties are include the public as consumers, as well as business people ranging from micro-scale to large scale retail entrepreneurs,” Dana‘s Co-Founder & CEO, Vincent Iswara said.

This feature is designed to connect sellers or merchants with users through WhatsApp instant messaging services. Furthermore, consumers can directly order goods or food from merchants and continue payment transactions using the QRIS Fund.

Some available merchants in the system include Martha Tilaar Shop, Senopati Pharmacy, Bengawan Solo Coffee, Burgreens, Le Viet, Dailybox, Genki Sushi, Momoiro, Bariuma Ramen, Steak 21, Roti O, and several others. DANA also promises to continue improving the list of merchant partners available on this feature.

Adjusting to the pandemic situation

What Dana did was a form of business adjustment amid the pandemic. The home shopping feature will not only have an impact on users and merchants, but also the overall Dana service ecosystem.

In Singapore, Google Pay does the same thing. The “Menu Discovery” feature, which is present exclusively in Singapore’s Google Pay, offering a list of merchants selling food stalls available for orders to users.

The strategy of digital payment developers is said to be a realistic strategy. As one of the large-scale e-money users in Indonesia, DANA has not been integrated with the delivery service, while the other two players, Ovo and Gopay have been integrated with GrabFood and GoFood.

Ovo and Cashbac have launched similar innovation amid this pandemic. They offer options for users to do shoping from home. In fact, they didn’t launch exclusive features, only connect users with merchants through digital channels, both communication and payment.

Pandemic will have an impact on many things, including conditions that are often referred to as the new normal. Business reactions or innovations such as DANA may be one of many other forms of adjustment, the objective is to maintain the stability of the current business ecosystem.

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Original article is in Indonesian, translated by Kristin Siagian

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