This article was first published on June 7, 2018. Ever since then, Indonesia has been making progress in its inclusion of digital payments in almost every retail ecosystem, including informal small businesses. The introduction of QRIS during the pandemic has contributed to this milestone. 

Since the startup’s first claim to fame in 2015, Go-Pay has always been an integral part of the Go-Jek experience. Embedded into the Go-Jek mobile app, users can top-up some amount of funds into the e-wallet feature and use it to pay for Go-Jek services from ride-hailing and food delivery to express courier.

An interesting development happened in July 2017 with the launch of Go-Resto, which aims to enable Go-Food drivers, in general, to do transactions at various F&B and merchant outlets using Go-Pay. The platform was launched with the expectation that, eventually, customers will be able to use Go-Pay for transactions outside of the Go-Jek ecosystem.

The prospect of being able to use the cashless payment system to buy food at the mall (and other daily necessities) seemed promising in a market where cash is king –and a long-reigning king, that one is.

So when Kompas Tekno reported that several street food stalls in Kebon Sirih, Central Jakarta, have begun to accept Go-Pay for payments, followed by the launch of Go-Pay at several offline and online merchants, I decided that I just had to try these myself.

So off I went on a three-day shopping trip to test out Go-Pay at various merchants.

The experience

 

Just in time for Ramadan, together with several leading retailers, Go-Jek launched a special promo that will allow users to get cashback by using Go-Pay to pay for their transactions.

Guided by the list of merchants on their site, I started off by paying visits to bubble drink outlet Chatime and bookstore chain Gramedia to test out the new service.

Also Read: Indonesian ride-hailing giant Go-Jek to launch online content production house, streaming service

There was a considerable queue at Chatime as it was near time for iftar; people in the mall were getting themselves ready by buying food and drinks.

I took the risk of being called a creep by watching every single person standing before me, and what they used to pay for their drinks. The majority of them used cash, followed by credit or debit cards, despite notification on the cashier that this shop accepts Go-Pay.

When my turn came, I asked the shopkeeper if it was possible for me to use Go-Pay. She said yes and took out an EDC machine with a Kartuku label on it.

(Friendly reminder that fintech startup Kartuku was acquired by Go-Jek in December 2017.)

The machine then printed out a piece of paper with a QR code on it. I opened the “scan QR code” part on my Go-Jek app and scanned the code. The next thing that showed up on my screen was an option to choose between the Go-Jek and Go-Life apps.

I picked the Go-Jek app and confirmed my purchase with a passcode; within seconds, my purchase was approved. I got to left the counter with a sense of victory; I liked to imagine that people were staring at me enviously as well.

The next day I decided to stop by Gramedia. Honestly, I had no plan to buy any book at the moment, so I stopped by the magazine section and got some back issues as they were really cheap.

Like the previous day, I was also the only person in the waiting line who was using Go-Pay for transactions. The lady behind the cashier even said that this was the first time she ever used it to process a transaction.

We repeated the same process as the one at Chatime, and once again, I walked out of the store excited.

My journey continued the next day to a noodle shop in South Jakarta which had been reported to accept Go-Pay as payment method. But unfortunately this is the first time I have been let down by the experience, as despite the reports, the cashier told me that the Go-Pay service is meant only for Go-Food drivers.

Also Read: Go-Jek, Openspace inject money into Bangladesh’s bike-hailing startup Pathao

I am not sure what happened here. Have I been misguided by the reports, or does it indicate the lack of communication between the noodle shop management, Go-Jek, and the staff?

No idea. But all that matters is that in the past three days, I have gotten enough materials to make a verdict.

Indonesia’s cashless revolution

If you have been using Alipay in China or ApplePay in Singapore, you may wonder: It is 2018, and someone in Indonesia is actually excited about using a QR code-based payment?

We have every right to be excited as we have been behind when it comes to the use of cashless payment methods. In the same way Go-Jek was not the first business to try to digitise ojek services, they were also not the first company to offer e-wallet service in this market. Think DOKU or Tcash.

Yet, as successful as these businesses go, they still fail to make e-wallet a must-have item in every Indonesian’s smartphone. No matter where we go, we always have a stack of cash ready in our wallet.

Let me explain to you why.

It is said that the lives of a typical Indonesian, particularly in Jakarta, revolve around the nearest shopping malls. True, we spend countless weekends and nights at shopping malls, hanging around or even just waiting for the traffic jam to calm down. But there is life outside the shopping mall, and this is why we always have a stack of cash ready.

As you move your car out of a parking lot, there will always be a tukang parkir (“Parking man”) showing up with a whistle to help you out.

You wait in a traffic jam, and a street seller shows up at your window with bottles of drinks. You decided to buy one.

You aim to take a U-turn, but the other cars and motorbikes just will not let you. A group of teenagers showed up to help you get your chance. They expect a reward, so you hand them some coins. This profession is called a pak ogah.

Once you arrive home, you realise that you are running out of sugar for your evening tea. So you walk out to a nearby warung.

These are all the kind of services provided by small businesses and individuals that are essential to the life of every Indonesian. And these services can only accept cash.

(I personally have never seen a pak ogah with an EDC machine, so yeah. These services are also the reason why vending machines will never be popular here.)

Also Read: Go-Jek to invest US$500M to support international expansion plan

Now let us link it back to the reason why previously released services such as DOKU and Tcash did not work.

Many of these services team up with retailers at the malls, which is great until the customers walk out of the mall itself.

Also, while Tcash has recently announced its plan to become agnostic, the service was previously only available for users of mobile operator Telkomsel.

I personally find it off-putting to sign up for something new. Last year the government made it obligatory for all toll roads to use cashless payment methods; only then did I actually apply for one, as provided by the bank. Because otherwise, I would not be able to use the highway.

This is why Go-Pay might actually has the chance to bring forth the cashless revolution.

Though they have also used the strategy of partnering with major retailers, they also include small businesses and street food sellers as part of their launch strategy, covering a previously untouched segment by cashless payment methods providers.

The platform also have a network of small and big F&B retailers through its Go-Food service; looking at all the services available on the Go-Jek platform, there is a strong possibility that one day we get to use Go-Pay for transactions at the cinema, the pharmacist, or the supermarket.

The e-wallet is also integrated into a mobile app that provides a core service that is even more essential to Indonesians’ lives than the malls: Transportation. (Otherwise, how do you get to the mall!?)

With an integrated service, you do not have to download another app or sign up for something with the bank. If you are lazy like me or have limited space on your smartphone, this is a great way to lure you in.

Now what?

 

So what is next for Go-Pay? Considering the fact that the service has only been launched in the past month, there is a limited number of merchants that we get to use it. This is understandable, but we are definitely looking forward to seeing more coming. Not only in numbers but also in variety. If my favourite laundry shop starts to accept Go-Pay next month, I will be a very happy person.

Also Read: Southeast Asia is setting itself up for disappointment with Go-Jek entrance

If there is anything that Go-Jek needs to work on, it is educating the customers about the existence of such a service. As I have explained in previous paragraphs, I was the only shopper in the queue line who was using the service. I talked to friends and family about my experience shopping with Go-Pay; most of them are even shocked that you can actually use Go-Pay at Starbucks.

What is the best way to educate the society about this service? I honestly do not know. Promos are nice, but sometimes people need to be encouraged by seeing a person using the service in real life. Hopefully, the person standing behind me in Gramedia will be inspired to use his Go-Pay to buy books.

The last thing I am going to say is that: Your move, GrabPay.

The post (Updated) I used Go-Pay to buy these magazines and a bubble drink. Here is why I think it’s game-changing appeared first on e27.

Though we may not talk about it so often anymore, many of us would still remember what happened at the end of 2022: When news about FTX’s collapse took over the headlines.

This write-up by Forbes might serve as a good reminder of what happened.

“The crypto market is swinging from left to right, comfortable in limited range and smooth curves. The FTX fallout in the year 2022 shook the market and turned it down. This year gave a fresh and positive perspective to major cryptocurrencies like Ethereum and Bitcoin, which gradually turned green helped by the relaxed macroeconomic situation of macroeconomic and cooling inflation,” the article writes.

“Nevertheless, the market sentiments have slowly turned from fear to greed and then to neutral.”

With the exception of those who are actively involved in the industry, some of us might wonder: So, what is the state of crypto exchanges today? Has it managed to gain (back) the trust of the general public, who could potentially be the next investors? What are the ways that exchanges are using to attract, particularly retail investors?

Also Read: With new US$100M fund, KXVC aims to help global AI, Deep Tech, Web3 founders win APAC market

On the second day of TOKEN2049 in Singapore on September 14, there was a discussion about the importance of education in acquiring retail investors on board.

According to Huobi Ventures Managing Director Edward Chen in a panel discussion, the strategy that they are taking is to focus on providing support to new users. He sees that in the case of most of its users, who are mainly professional investors, there is already a basic understanding of crypto.

“We also provide education programmes, but we usually come up with a third party.”

On being compliant

Another big theme that seems to have surfaced in the industry lately is the matter of regulation.

In August, Singapore became among the world’s first to agree to stablecoin crypto regulation. As detailed by CNBC, The Monetary Authority of Singapore (MAS) proposed framework includes key requirements such as reserves that back stablecoins must be held in low-risk and highly liquid assets.

If trust is one of the key issues that prevented users from embracing crypto and the Web3 industry from becoming mainstream, perhaps the sense of security provided through regulation can be a piece of good news.

It has definitely helped investors—in this context, VC firms—to be more confident in investing in Web3 industries.

Also Read: How to stay creative in the age of Generative AI and Web3

KX Venture Director Thanaarmates “Paul” Arriyavat, in an interview with e27 during his visit to Singapore, highlighted that several countries in SEA are more promising when it comes to becoming a hub for Web3 companies, such as Thailand and Singapore. The one thing in common between these two countries is the regulatory certainty that enables companies to operate smoothly.

“Because the rules and regulations over there are pretty forward-looking; it has a clear separation between tokens or digital asset that has utilities and security … We’re still waiting for the regulations on liquidity announcement [from the government] so that we will be able to move forward with a lot of use cases,” he stressed.

Like with many regulations, there are plenty of aspirations—and plenty of waiting. But I would like to think that, after a turbulent time, players in the crypto and Web3 space would like to have reasons to feel optimistic.

Whether Web3 will become mainstream or not, it might be up to the customers to decide.

The post Web3 industry players forge ahead after a year of challenges appeared first on e27.

Evo Commerce, a direct-to-consumer health & beauty startup based in Singapore, has secured US$2.8 million in equity and debt financing.

Shanghai-based firm IJK Capital led the round, with participation from Carousell Co-Founder and CEO Quek Siu Rui, Fave Co-Founder Joel Neoh, and Tipsy Collective.

This comes about eight months after the D2C startup announced the completion of its pre-series A funding round of US$2 million from GSR Ventures, 33 Capital, Rainforest CEO and Co-Founder JJ Chai, Wallex Co-Founder Hiro Kiga, and BrideStory Co-Founder Emile Etienne.

The company will use the money for product development and market growth. The debt financing will be used for expanding its retail presence across Asia, including renowned retailers such as 7Eleven, Guardian, and Watsons.

Also Read: Evo Commerce, parent of D2C anti-hangover solution BounceBack, nets US$2M

Evo Commerce aims to reshape the landscape of health & beauty products in the region by bridging the accessibility gap and “empowering Asian consumers with top-quality products”. The company owns two brands: back (focusing on post-party recovery aids and daily supplements) and Stryv (specialising in the affordable luxury segment for personal care electronics).

The startup claims to have achieved 25x growth in the past 18 months. It aims to achieve EBITDA profitability within the next six months of operations.

The founders have plans to raise an additional US$1-2 million before closing the current round.

Roy Ang, Co-Founder and CEO of Evo Commerce, said: “We believe that the health and beauty category is significantly underserved in Southeast Asia markets. Our mission is to enhance the lives of Asians by solving accessibility issues for these products.”

In 2022, Evo Commerce secured US$600,000 in seed funding, led by East Ventures, with notable angel investors Aaron Tan from Carro, Joel Leong from ShopBack, Mohandass from Spenmo, and Jonathan Tan from Prism+.

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Image Credit: Evo Commerce

The post Evo Commerce banks US$2.8M more for product development, Asia expansion appeared first on e27.

This article was first published on July 25, 2018. After a period of hiatus during the COVID-19 pandemic, the Nexticorn International Summit has been held for two consecutive years in Indonesia, with the latest being on September 15-16, 2023.

At a power breakfast event hosted by Indonesia’s Ministry of Communications and Informatics (Kemenkominfo) in South Jakarta today, Convergence Ventures Partner Donald Wihardja pointed out that four out of the 10 unicorn startups in Southeast Asia –Tokopedia, Go-Jek, Traveloka, and Bukalapak– are made in Indonesia.

“They were founded in Indonesia and reached their unicorn status by working in the Indonesian market,” he stressed.

However, their success was more of the exception than the rule for most startups founded in the country. Although the number of venture capital (VC) investments in the country continues to rise, it remains challenging for most early stage startups to move beyond.

This is where the government comes in with the Next Indonesian Unicorn (Nexticorn) programme.

The result of a collaboration between Kemenkominfo, Indonesian Venture Capital and Startup Association (Amvesindo), and EY, the programme aims to streamline and promote Indonesia’s most investable startups to global investors.

During another government-endorsed programme such as 1000 Startup targeted early stage startups, Nexticorn focusses on middle stage startups looking to raise their Series B funding round.

Also Read: Invest in Indonesia yesterday, says DailySocial Founder Rama Mamuaya

In addition to promoting Indonesia as a potential market, the programme also aims to connect startups with potential investors. It also aims to launch a centralised directory of startups for potential investors to browse in.

Led by Minister of Communications and Informatics Rudiantara himself as chairman, the programme’s board of advisor features prominent names in the Indonesian startup community such as Wihardja and Venturra Capital Managing Partner Rudy Ramawy.

The programme also named ADSKOM Co-Founder and CEO Italo Gani, Tokopedia CEO and Co-Founder William Tanuwijaya, Go-Jek CEO and co-founder Nadiem Makarim, as well as former OLX Indonesia CEO and ADSvokat co-founder Daniel Tumiwa as brand ambassadors.

“This event was born out of concern from industry players, which the Kemenkominfo has been listening to,” said Lis Sutjiati, Deputy to the Chairman for Nexticorn Strategy Formulation Coordination.

“Today the role of government has gone beyond regulator; it should also serve as a facilitator and even accelerator,” she stressed.

Also Read: A horse of another: Here’s the complete list of Southeast Asia’s 28 unicorns

The programme consists of three main parts: The main summit that has been conducted in Bali in May; monthly roadshows to countries such as Singapore, Japan, and the US; as well as the second part of the summit which will be held in conjunction with IMF and World Bank event in Bali in October 13-14.

The event in May has brought over 65 Indonesian startups to meet with 89 potential investors from US, Japan, Singapore, India, Australia, and South Korea. The organiser curated both the startups and investors, and the event resulted in 1,035 meetings between investors and startups with 294 follow-up meetings.

Registration for the event in October has already been opened; though the organiser did not have any specific target for the number of participating startups, they urged them to register as early as possible.

“Indonesia has a lot of potential startups, but it is tough to discover them. This is why a powerful meeting is necessary,” Sutjiati said.

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Image Credit: Artem Bali on Unsplash

The post (Updated) How Indonesia plans to close Series B funding gap among its startups appeared first on e27.

This article was first published on July 17, 2018. In March 2023, according to a DealStreetAsia report, TaniHub Group faced a “crucial hearing” in the local district court to decide the next course of action for the company following a series of legal issues. 

As the number of Indonesian agritech startups continue to grow, only several startups are able to stand out with their presence and business lines. One example of such startups is TaniGroup, which has developed the TaniHub and TaniFund platforms.

TaniGroup Co-Founder & CEO Ivan Arie Sustiawan once explained in an event that the TaniHub platform has been used actively by 680 farmer groups. Its client list has grown beyond 230 units, consisting of supermarkets, restaurants, exporter, manufacturers, and SMEs.

As for TaniFund, the platform claimed to have channeled up to IDR19 billion (US$1.3 million) to 34 projects run by farmer groups. The funding for the projects was raised through online crowdfunding and credits from several banks.

Founded in August 2016, TaniGroup itself has also raised a pre-Series A funding round led by Alpha JWC Ventures.

In order to expand its capability, this year TaniHub launched a commerce app for farmers that enables them to directly sell their products to customers. They also have another app that helps B2B customers purchase agricultural products from the farmers. The two apps were aimed to speed up on-boarding and transaction process.

“For TaniFund, we are currently in the process of expanding the farmers and supporting apps, so that farmers can use their app to receive all sorts of assistance in farming, such as weather information, polyculture method, treatment method, and many more,” Sustiawan told DailySocial.

Also Read: Agritech startup Jala comes out as winner of Top100 Indonesia Qualifier Roadshow

Challenges in the agricultural sector

 

The truth is that there are plenty of challenges in running an agricultural business, from the matter of production chain to the capacity of the farmers themselves. This is something that TaniGroup has to deal with in developing its business. According to Sustiawan, the greatest challenge that the company is facing is socialising its platform to both farmers and clients.

“It is indeed a costly and painful process, but this is something that all startups aiming to make it big have to go through. The way we explain our business process to farmers is by attending socialisation events held by Ministry of Communications and Informatics, Ministry of SMEs, Financial Services Authority, and the Central Bank,” Sustiawan said.

TaniGroup believes that soon technology will transform Indonesian agriculture system to become more productive and transparent. Sustiawan gave an example of a digital system that can help farmers increase supplies. Farmers that have worked with TaniGroup claimed that they feel benefited by the certainty provided by the platform; they felt encouraged to plant more and hire more people for their fields.

“Farmer groups that have applied for funding through TaniFund can also secure it relatively faster. In addition to providing a marketplace and lending services, technology is also able to assist farmers in choosing and optimising the right farming method,” Sustiawan continued.

With the achievements that the startup has already made, TaniGroup is confident enough about expanding beyond Java this year. It will continue to add new features, following feedbacks from farmer groups and their B2B clients. In addition to that, TaniFund also aims to reach a greater number of funding achieved for farmers, with the goal to increase the social impact, particularly in organic farming.

Also Read: More details emerge on early stage funding round for Indonesian agritech startup Sayurbox

Great opportunities remain in the agricultural sector

 

As industry players begin to recognise Indonesia’s potential as an agricultural nation, more startups in the agritech sectors are entering the market. There are indeed many problems to solve in the market; a central statistic agency revealed that the growth of agricultural sector in 2016 was only 1.85 per cent. Investment in the agricultural sector was also considered insignificant with the industry taking over 13.56 per cent of national industries.

Sustiawan welcomed the appearance of new competitors with open arms.

“We believe that there is enough ‘cake’ for everyone in the sector so that we do not have to consider each other as competitor. Our hope is for agritech startups to collaborate with each other as the biggest goal for Indonesian agritech startups should be prosperity for all farmers and fishermen, promoting sustainable farming for the sake of the country’s agricultural business sector, and maintaining food security,” he closed.

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The article Potensi dan Tantangan Industri Agrotech di Indonesia was written in Bahasa Indonesia by Randi Eka Yonida for DailySocial. English translation and editing by e27.

The post How TaniGroup faces challenges, opportunities in Indonesian agritech industry appeared first on e27.