Raiz Invest Aims for Millennials with “Easy Investment” Strategy

Few months after being introduced, PT Raiz Invest Indonesia officially launched their micro-investment service in Indonesia. A web-based platform to tighten its position in the market, including a partnership with PT CIMB Niaga Tbk as a payment option.

Raiz Invest‘s CEO, Melinda Wiria said, their company always aims for millennials, considering the great potential, one-third of the total population or equivalent to 80 million people.

“Millennials have barriers to invest. Aside from the perplexing process, it costs much. We’re here to assist for easy investment and fast track. We can invest without changing lifestyle.”

Currently, Raiz Invest offers three services, Recurring Investment or investment using auto-debit installment, Lump Sum or direct investment at a certain value, and Round-up or investment collected from the transaction change.

In terms of Round-up, every transaction amount will be rounded up to Rp10,000 and collected as an investment, directed to Raiz app.

Raiz Invest’s CMO Fahmi Arya said the collaboration wouldn’t stop at CIMB Niaga. He currently exploring partnerships with two e-money providers.

“Currently the cross-bank transfer still run conventionally or cost an additional fee. Using CIMB Niaga, the small-amount transaction, for example, Rp10,000 won’t be charged. This is what we meant by online investment should be built within a closed ecosystem,” Arya said.

In addition, he also said the company plans to develop a community portal to connect investors with related parties in the investment industry. It’s to accelerate financial inclusion for investors and newcomers.

Raiz Invest, previously Acorns, is an Australian-based fintech company. Post IPO last year, they expand the business to Indonesia. The company aims for 40 thousand users by the end of this year.

Fintech should support first-time investors

Head of Indonesian Investment Advisory Association (IAA), Ari Adil said the fintech era is very important for the rise of some first-time investors in Indonesia. They’re said to be a part of Indonesian Mutual Fund Dealer Association (MFDA).

“In Indonesia, the financial index is the lowest. It’s different with Banking’s high index. It explains that investment literacy rate is very low in Indonesia. Therefore, fintech is very important for user acquisition,” he said on the same occasion.

OJK’s Head of Investment Management Policies Development, Solihin Betas also mentioned the investor rate is increasing since the rise of online investment for the past few years.

“Previously [before online investment], we aim for 5 million investors but failed. Nowadays, the number is increasing, at least 300 thousand new investors appear every day,” he said.

Betas added, to date Indonesian central securities depository (CSD) listed 1,8 million investors in Indonesia. Based on the current achievement, the 2 million-investors target should be achieved by the end of this year.

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Original article is in Indonesian, translated by Kristin Siagian

UangTeman Closes Series B Round Worth of 143 Billion Rupiah, Planning for Expansion and Acquisition

The financial technology startup UangTeman announced the first round of Series B funding – named series B. There are new faces, including KDDI Open Innovation Fund and Global Brain Corporation. Some investors from the previous round also involved.

They also informed the second round (series B2) should be closed by October 2019. In this round, Spiral Ventures will take the lead. The whole series B is to make $10 million or 143 billion Rupiah.

Spiral Ventures’ CEO, Yuji Horiguchi said on this round that they are going all out through the current experience and skill to support UangTeman current development.

“In Indonesia, the online loan industry has become a part of social infrastructure. By following the path of UangTeman, we can have a better understanding and making a further contribution to support and creating effective social infrastructure for SMEs in Indonesia,” he said.

Acquisition, diversification and expansion

UangTeman has acquired an official license from Financial Service Authority (FSA) on May 2019, after passing through the whole series of the auditing process. Furthermore, this momentum is to create product diversification. In a specific way is to distribute online loans focused on productive micro business.

Diversification will be made through the acquisition of another online loan company which is already registered on OJK. The name is still undisclosed but the product coverage includes invoice financing and payroll distribution. The process is to be finished by September 2019.

In addition, UangTeman is planning a strategic step to expand to the Philippines. They are currently in the process of getting a license from the local financial service regulator. In order to increase penetration in Southeast Asia, they also plan for Series C in 2020.

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Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

99.co Startup for Property Announces 216 Billion Rupiah Funding, Still Focused on Jabodetabek area in Indonesia

99.co website for property has recently announced Series B funding worth of $15.2 million (around 216.6 billion Rupiah). MindWorks Ventures and Allianz X led this round, followed by the previous investors, East Ventures, Sequoia India and Eduardo Saverin.

The fresh money is to be focused on the development and expansion of coverage in the core market, Singapore and Indonesia. Darius Cheung, 99.co‘s Co-Founder & CEO told DailySocial, they have acquired more than 2 million monthly users in Indonesia with over 150 thousand lists of property.

To date, 99.co still focused on Jabodetabek area in Indonesia although they’ve been operating in some other cities, such as Bandung, Surabaya, and Pekanbaru. This expansion becomes the company’s current strategic plan.

“In fact, we’re still focused on Jabodetabek for now. While we operating the business in other cities like Bandung, Surabaya, Pekanbaru and to be continuously expanding with Jabodetabek as the main focus,” he said.

In terms of transactions, 99.co still lean on the agent system. Cheung said they have 3 thousand agents registered and proceed more than 2,000 transactions.

“During 2019, we’ve established some software improvement for Indonesian agents, including a CRM system to increase productivity. In the second half this year, we’re to launch some product innovations for consumers,” he added.

Previously, in early 2018, 99.co made a movement by acquiring property portal, Urbanindo. The existing product and feature were transferred to 99.co per August 2018.

“We believe, the design-centric approach we used to solve the complicated process, also thorough technology for geo-location development and market data has brought us on lead and distinct,” Cheung said.

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Original article is in Indonesian, translated by Kristin Siagian

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Goola Receives 71 Billion Rupiah from Alpha JWC Ventures, to Implement “New Retail” Concept

Alpha JWC Ventures today (8/16) announced investment to Goola, a startup focused on traditional beverages. It was worth up to $5 million or equivalent to 71 billion Rupiah. They provide various beverages, such as doger ice, green bean ice, and many more. Targeting young adult, they’re using “grab-and-go” concept for serving and packaging.

Goola was founded in 2018 by two founders, Kevin Susanto and Gibran Rakabuming. Gibran is well-known as President Joko Widodo’s son and a businessman in the culinary industry. They are currently open five outlets in Jakarta, to develop 100 more after receiving funding until 2020 – in Indonesia also the neighbor cities.

“Goola was first established as a conventional culinary business, then we realize that this can grow bigger once we transformed and start using technology in daily operation,” Susanto said.

“New Retail” Implementation

In addition to the outlets, fresh money will be focused on the new retail implementation. It’ll be realized through the application – the developing process is currently internal.

Goola app design is to maximize online transaction experience no queue, loyalty program, and others. This app also helps to analyze consumer’s habit to constantly improve the services and products.

“The use of technology is one thing, for me, the most important is the ingredients. Our challenge is to take Goola and these local beverages into the global market,” he said.

Susanto added, “If there is any other competitor arise, it will be our market validation. Competitors are the motivation we need to realize Goola mission faster, for they will help us to educate the market on relevant products.”

Prior to the business, Alpha JWC Ventures had first invested on Kopi Kenangan. The key is similar, they are to develop a new retail concept in selling cups of coffee to young adults.

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Original article is in Indonesian, translated by Kristin Siagian

ASEAN LegalTech Officially Introduced in Indonesia, an Association for Legal Tech Startups

ASEAN LegalTech officially introduced in Indonesia. It is the first association in Southeast Asia to connect legaltech ecosystem or legal-based digital startups in the region.

Justika‘s CEO, Melvin Sumapung is one of the ASEAN LegalTech representatives for Indonesia. He explained the purpose of introducing this association to the public as the voice of communities, further the ecosystem and the bridge for Southeast Asia’s stakeholders.

“This advocacy emphasized more on promotion to various kinds of stakeholders. For legaltech happened not only from startup or law firm but the combination of various parties. Therefore, on the side of the founding board, there are law firms, legaltech startups, and others,” he told DailySocial

ASEAN LegalTech was founded by 6 people from different countries. Those are Eric Chin from Alpha Creates, Hanim Hamzah from ZICO Law, Cherilyn Tan from Interstellar Group, Thomas Thoppil from Hewlett Packard Enterprise, Michael Law from Rajah & Tann Technologies, and Andrew Stoutley from Tilleke & Gibbins.

The association has representatives in almost all Southeast Asia;s countries. Along with Melvin, there is also Hukumonline’s CTO, Arkka Dhiratara who is also appointed as ASEAN LegalTech representative for Indonesia.

LegalTech potential in Southeast Asia

Legaltech market in Southeast Asia still leaves great space to develop further. ASEAN LegalTech research has found 88 registered legaltech in Southeast Asia. Dominated by Singapore and Indonesia for 25 and 21 startups.

It is bigger than the number mentioned on Codex Techindex on legaltech startup worldwide. It is said in the index, only 16 startup listed in Southeast Asia.

However, the market share available in the region consists of 645 million population, 3,825 registered company on the exchange and 650 million SMEs. While the lawyer population in Southeast Asia just reached 248 thousand.

“ASEAN LegalTech aims to connect Indonesia, Singapore, Malaysia, Vietnam with other countries, and it’s not only 16 but 88 players unnoticed by the whole universe while they exist,” Sumapung added.

He also said to target 21 legaltech in Indonesia joined the association. Other institutions, such as law firms and regulators might be a member of this network.

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Original article is in Indonesian, translated by Kristin Siagian

User’s Feedback on Using Popular E-money Amidst the Tight Business Competition

The payment-app (e-money) competition in Indonesia is entering a new chapter. The more players penetrate the market, the more interesting goes the war of strategy.

Nolimit, a company worked on online media analytics has recently released a report on social media perspective related to some payment apps. They highlighted the social media issue about each company in July 2019.

LinkAja is actively posting on Instagram, Facebook and Twitter with 120, 179 and 189 posts each during July 2019. Dana is quite active on Youtube with 4 videos. These include posting for promos, inspiration, education or any other interaction.

On Instagram, LinkAja with 584,300 followers has reached 118,220 engagement with 0.17 ratio per post. This is far behind Doku with only 11,035 followers but getting 49,929 total engagement with 4,16% ratio.

In terms of followers in July 2019, Dana is leading the table with 12.01% growth on Instagram, 13.23% on Facebook and 30.09% on Youtube. On Twitter, Go-Pay made the most of followers with 18.52% percent.

Negative feedback comes from technical issues

In terms of feedback, LinkAja (26,354 feedback with +85,03%) and Doku (1,068 feedback with +85.55%), followed by Dana (49,570 feedback with +76.67%), GoPay (54,172 feedback with +45.41%) and Ovo (137,556 feedback with +3,26%).

Positive feedbacks mostly comes from promotions, such as 30% cashback from Ovo, GoPay PayDay and discount for BTS Bring The Soul ticket on Book My Show from Doku. The additional feature has an impact on social media. It’s easier to buy game vouchers using LinkAja, transfer via Dana or making Google Play transaction through GoPay.

Previously, iPrice Group and App Annie mentioned in their report; Gojek, including GoPay, Ovo, Dana and LinkAja placed as the e-wallet with the highest user rate. Observing the activity and feedback on Nolimit’s report, it shows LinkAja’s effort to accelerate user growth using social media interaction. Posts related to promotion, education and other interactions are quite high on various platform.

A small distinction with Ovo as many were talking about. They gain more negative feedback due to customer complaints on decreasing balance and login issue. Other players as GoPay, Dana, LinkAja and Doku also face the same complaints on social media about technical issues, such as top-up and transaction failure. However, positive feedback covers it all.

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Original article is in Indonesian, translated by Kristin Siagian

Logisly Announces Seed Funding from SeedPlus, Genesia Ventures and Convergence Ventures

A logistics transportation solution startup, Logisly, today (8/15) announced seed funding with undisclosed value. The round was led by SeedPlus, Genesia Ventures and Convergence Ventures.

“With the founder’s experience on logistics and construction, we’re glad to support Logisly that we believed to have a unique position in providing innovative solutions for all the industry problems,” Tiang Lim Foo of SeedPlus said in the official release.

Logisly is a platform that connects producers (shippers) with logistics truck (transporters). Approximately 5 thousand trucks and hundreds of transporters are available with some variants, such as van, trailer, tronton, and flatbed.

The startup aims for B2B logistics market in Indonesia. They estimated for 8 million unit trucks all over Indonesia with economic value reaching up to US$100 billion.

As predicted, the logistics industry in Indonesia worth as much as Rp797.3 trillion last year and predicted to grow 11.56 per cent to Rp889.4 trillion this year. Logisly aims for 1,000 transporters and 1,000 shippers.

“As a B2B platform, we guarantee the consistency of our service and product quality, consumers can rely on us to be part of their supply chain,” Logisly’s CEO, Roolin Njotosetiadi said.

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Original article is in Indonesian, translated by Kristin Siagian

Application Information Will Show Up Here

iPrice Report: GoPay as E-wallet with The Biggest Monthly Active Users in Indonesia

iPrice Group collaborates with App Annie on summarizing e-wallet service evolution from the fourth quarter of 2017 to the second quarter of 2019. Gojek, including GoPay and its services, become the most downloaded and used app monthly, followed by Ovo, Dana, LinkAja and Jenius.

Gojek has consistently led the table as the most used app since late 2017 to date. Meanwhile, there’s always movement in the top five, the impact of each app provider’s strategy.

LinkAja, with the previous name TCash was only a row away from Gojek then. After Ovo emerged, both continuously exchange position from second to third, until Ovo tag along with Gojek in the second position from the third quarter last year to the second this year.

Ovo consistency in keeping up with its users can’t be separated from its partners. After they become the official payment for Grab and one of the payment options in Tokopedia replacing TokoCash. Ovo has acquired the user base from Grab and Tokopedia for its service.

On the other side, LinkAja has been through another issue. After being replaced by Ovo, they’re getting outgrown by Dana, a new player since the fourth quarter of 2018. The joint venture of Emtek Group and Ant Financial has to leave LinkAja behind by the second quarter of 2019. If it’s not for their strategy as one of the payment options on Bukalapak, the moment might not be there. It includes all the discount campaign on merchants in top-tier cities.

Based on the iPrice Group data on LinkAja, they’re now in the fourth position of e-wallet with the biggest monthly active users. The effort made by state-owned enterprises “collaboration project” LinkAja has shown since early 2019, they’ve been seeking a strategic partnership with service providers, government, and other e-wallet developers.

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Original article is in Indonesian, translated by Kristin Siagian

[DSChoice] Halal Local and pergiumroh are in Fundraising Stage

After Lacak.io and Invita in the previous series, DailySocial continues to provide recommendations for investors regarding potential early-stage startups. This startup selection is based on several criteria. In the process, each nominee asked to submit extensive information about the team and the traction. The coverage will be limited, as an overview and public notice. The explanations were written directly by each founder.

Halal Local (Bandung)

Vertical, Platform & Year of Founded: Tourism, Mobile (Android), 2016

Company Description

Halal Local is a mobile app which allows Muslim traveller to get offers in comprehensive tourism needs such as nearby halal restaurants, prayer rooms, prayer time, qibla and so on. Halal Local gives worldwide coverage over 140+ countries all around the world with global app users. Our customer base is currently 25% Indonesia, 26% Saudi Arabia and UAE, 12,5% USA & Canada, 12,6% UK and Europe and 23,9% in other big countries.

The app is specialized in halal foods, so we are actively listing over 55K+ halal restaurants and validate the halal label. Halal Local give freemium membership and open API for data analytics, especially to restaurants, so they can develop its business effectively and efficiently. The startup is co-founded by two people who were studying for postgraduate degrees at universities in the United Kingdom.

Traction

App Download	Monthly Active Users
10.000+ downloads	1.600+ unique users

Planning

How much do you expect to raise?	How much equity are you willing to give away for this round?
USD 100.000	15% max

The plan is to use 60% of the funding for technology, salary, and operational costs; and the other 40% of the funding for marketing activities that will grow the traffic as well as our database value. Halal Local will use 40% for the marketing activities to enlarge the halal restaurants’ list worldwide.

Further details:

Founders: Muhammad Senoyodha Brennaf
Funding Round: Seed ($48.000+)
Competitor: CraveHalal, Muslim Pro, Halal Trip etc

Application Information Will Show Up Here

pergiumroh (Jakarta)

Vertical, Platform & Year of Founded: Travel, Website & Mobile (Android), 2018

Company Description

pergiumroh is the leading online marketplace for umroh in Indonesia. They work with over 30 trusted travel operators to provide over 300 packages; customers can choose, pick, compare and purchase in one single platform. The platform also provides planning mechanism to make umroh purchasing more affordable.

Umroh is a USD 2 billion per year market. All stakeholders (government, industry players) are excited about the industry digitization and we’re leading the market today in terms of the digital marketplace.

Traction

Registered User	Monthly GMV
1050+ users	$53,000

Planning

How much do you expect to raise?	How much equity are you willing to give away for this round?
USD 900,000	20% max

pergiumroh is looking for partner(s) to grow together. The fund would be for 12 months runway, and we would expect we can raise for Series A in the next round. Having partner(s) that can push this together, can help us open doors for more network and follow up investment would be beneficial for the company.

Further details:

Founders: Abul Almaujudy, Faried Ismunandar
Funding Round: Seed ($350.000+)
Competitor: Umroh.com, KitaUmroh.com etc

Application Information Will Show Up Here

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If you are an investor or part of the venture capital, we have a special newsletter of complete information about the recommendations, including pitch deck and traction. However, have you had any intention to connect with the related founder, we’d be willing to help. For further information, please contact [email protected].

MDI Ventures Involved in China-Based Fintech Startup QFPay Investment

A China-based fintech startup, QFPay, announced fresh funding worth of $20 million (over 286 billion Rupiah) led by Sequoia Capital China and Matrix Partners. MDI Ventures listed as a new investor in this round, followed by Rakuten Capital, and VentureSouq.

In the official release, QFPay’s Co-Founder & International CEO, Patrick Ngan said the fresh funding will be relocated for global business expansion and to develop more solution-based digital products. The new investors are going to carve a path for the future business plan.

“We’ve seen the great development in the digital payment adoption around Asia, on the needs of the local network and strategy in each market. Supports from the strategic partners are essential to navigate the complex business,” he added.

QFPay’s Co-Founder & CEO, Tim Lee also said the company is very enthusiastic about making the last seven years of experience useful to lead the cashless movement throughout Asia. In order to increase digital transactions, particularly the QR-code method in the region.

QFPay is a mobile payment and big data tech company since 2012. In its origin, they’re the biggest partner to WeChat Pay and Alipay, receiving merchant transaction process worldwide. It is said to serve more than 1.2 million merchants and proceed over 1 billion transactions.

QFPay have not really tune in here, in Indonesia. The last news in 2017 said the company has partnered up with Hong Kong-based settlement business EMQ for real-time merchant payment. EMQ has first acquired a license for Fund Transfer Operator by Bank Indonesia on March 2017.

QFPay is available in 13 countries in Asia and Middle East, such as Cambodia, China, Hong Kong, Indonesia, Japan, Korea, Laos, Malaysia, Philippines, Singapore, Thailand, and United Arab Emirates.

MDI Ventures arrival should carve QFPay path in Indonesia to compete with the locals. Their technology combines with MDI connection as part of Telkom Indonesia will absolutely resulting benefit to the company.

In terms of portfolio, MDI Ventures has been investing in overseas startups, such as CXA Group, Instarem, Roambee, Whispir, Postr, Orbital, Wavecell, and many more.

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Original article is in Indonesian, translated by Kristin Siagian