Indonesia Startup

Report 2015

DS Annual Startup Report 2015

Content

Indonesia internet market

Market overview
Mobile market
E-commerce market
O2O
Advertising market
Fintech market
Investment landscape
Fundings overview
Angels revival
Investment trends in 2016

Startup landscape
2015 in startups
On-demand services
E-commerce
Fintech
Issues & predictions
DS10 2015
DS10 Founders 2016
DS10 Investors 2016
DS10 Startups 2016

About This Report

DailySocial.id is Indonesias fastest growing tech blog that

focuses on startups, entrepreneurship, business, lifestyle and
consumer tech. This report is a curated and aggregated
information on Indonesias tech scene, with the sole objective
of helping both local and foreign entities to better understand
the tech landscape.

Research team:
Amir Karimuddin - Chief Editor, DailySocial Business
Adjie Priambada - Journalist, DailySocial Business
Yenny Yusra - Reporter, DailySocial Business
Michael Erlangga - Jr. Reporter, DailySocial Business
Rama Mamuaya - Managing Editor, DailySocial.id

Market Overview
Internet in Hand: Power of Mobile

DS Annual Startup Report 2015

General Market Overview

Indonesia has a GDP per capita of $3,540
($4,900 at PPP) exceeds many of its ASEAN
neighbors such the Philippines and Vietnam,
and with 253 million people (World Bank),
Indonesias economy comprises nearly half
of ASEAN economic output.
The number of households in Indonesia
earning US$5,000 to US$15,000 in annual
disposable income is expected to expand
from 36% of the population to more than
58% by 2020.
More than 60 million low-income Indonesian
workers are expected to join the middle
class in the coming decade, significantly
increasing the already strong consumer
demand.
The Indonesian consumer is ranked as one
of the most confident in the world, and 50%
of Indonesias 253 million citizens are under
the age of 30

Internet & Mobile Market

83,600,000 Internet users (33%)

28.3% are categorised as Digital

Immigrants (late adopters, older
generation 40-59 y/o)

69.3% are categorised as Digital Native

(early adopters, younger generation
20-39 y/o)

281,963,665 active mobile subscription

(113% population)

99% prepaid customers

34% mobile connection is broadband

Source: Tiket, APJII & AdPlus

Devices Used

85%

32%

14%

13%

Source: APJII 2014-2015

Top 10 Popular Sites

1.

6.

2.

7.

3.

8.

4.

9.

5.

10.
Source: Alexa 2015

50%

most popular sites

are local.

A Facebook Country

Indonesias President Joko Widodo with Facebook CEO Mark Zuckerberg

Indonesia is the 4th largest

Facebook population in the
world.

70% of Facebook users in

Indonesia are under 25 years old

75% of Facebook users in

Indonesia accessing through
mobile devices

Male-Female ratio is 53-47

Time Spent
of the internet via a pc or tablet (internet
users) 5h 06m
of the internet via a mobile phone 3h 10m
of social media via any device (social
media users) 2h 52m
television viewing time (internet users
who watch tv) 2h 29m

Market Overview
Mobile Market

Internet Access
2014 Q4

2015 Q1

2015 Q2

70%
62.63%

61.16%

59.08%

52.5%

35%
26.35%

27.69%

28.3%

17.5%
11.03%

2G

3G

11.15%

Wifi

12.61%

Android Version

In 2014 Q4, 80.10% of people used

lower than version 4.4, and this
percentage dropped to 59.20% In
2015 Q2.

However, 15% of the market share is

still using version 2.X.

It is thus still important to

consider compatibility for lower
OS versions when developing
apps.
Source: Baidu Data, Indonesia users, 2015

App Download Days

Non-game download

Game download

Sunday
Saturday
Friday
Thursday
Wed
Tuesday
Monday
0%

25%

50%

75%

100%

Source: Baidu Data, Indonesia users, 2015

App Download Behaviour

16.67% of users download apps

on a daily basis. On average,
each user downloads 0.65 apps
per day.

There is a large discrepancy in

the number of apps individual
users download per day.

39.84% of users download 1 app

per day, while 22.73% of users
download 5 or more apps per day.
Source: Baidu Data, Indonesia users, 2015

Credit Card
7%

Payment
Methods

Others
8%

Cash On Delivery
28%

Bank transfer
57%

Source: PaymentsAsia

Mobile ARPU

Quarterly ARPPU Average

Payment Size

Carrier billing ARPPU:

Q2 15: $7.83

Q3 15: $6.13

Carrier billing ARPPU

change QoQ:-21.7%
Source: Fortumo

Market Overview
E-Commerce Market

E-Commerce in Indonesia

E-commerce shopping makes up just 1-2% of total retail sales in SEA.

This compares with 16% in Korea, 12% in the U.S. and 8% global average

Indonesia has been extensively mentioned as the next frontier for ecommerce after China and India.

140 e-commerce sites participate in National Online Shopping Day 2015 in Indonesia

Popular E-Commerce
Brand Index
Lazada
Tokopedia
OLX
Bukalapak
Zalora
Elevenia
Blibli
Rakuten
Qoo10
FJB Kaskus
Groupon Disdus
Berrybenka
Bhinneka
Matahari Mall
PinkEmma
0

10

20

30

40
Source: W&S Research

E-commerce Sales Growth

90%
85%

67.5%

71%

45%

45%
0.35

22.5%

0%

0.22

2012

37%

0.34

0.31
0.2

0.18

2013

Indonesia

0.3

26% 0.24
0.17

2014

2015

India

22% 0.2
0.15

2016

0.14

2017

Worldwide

Source: SparkLabs

Estimated B2C Sales

$32
$30.31

$27
$25.65

Indonesia
India

$21
$20.74

$16

$16.32

$11
$5
$0
(in billions)

$1.79

2013

$2.60

2014

$3.56

2015

$4.89

2016

Source: SparkLabs

Market Overview
Advertising Market

Digital & Mobile

Advertising Budget
8000

$7,800
6000

4000

2000

0
(in millions USD)

$460

$800

2014

2015

2019
(Predicted)

Source: eMarketer

According to a recent survey by

TubeMogul, last year purchases of
video ads in Indonesia
grew by more than

600%
the fastest in Southeast Asia

Market Overview
Fintech Market

Only 19% of Indonesia

population is BANKABLE

Impact of Fintech

Structural solutions for the e-commerce

industry

Enable SMEs and the small

businessman

Enable development (mass market

remains largely unbanked)

Reduction in operating cost

Customer-centric

New cross-selling opportunities

Mobility & Accessibility

Better risk-management

Simpler and Faster access to credit

Source : Kejora, Mountain Indonesia, ideabox, HK Fintech

Investor Overview
The Rise of the Angels & Giants
DS Annual Startup Report 2015

2015 Overview

Its an amazing year for the startup ecosystem in Indonesia.

Although there is some gravel, industrial growth still looks super
attractive and slowly began to have broad impact to society.

One factor that makes the startup ecosystem Indonesia grow this
year is the flow of investment funds and we recorded at least 70
publicly announced investments in 2015.

Approximately 50 capital owners invested this year and it includes

funding to startups outside Indonesia.

Some significant growth of financing activities by angel investors

in Indonesia was recorded too in 2015. In addition to that, this year
Indonesia officially had two angel clubs: Angel EQ and ANGIN.

Investor List
Investor Name

Categories

Based

Sinar Mas Group [SMDV]

Corporate VC

Indonesia

Portfolio 2015

Local: Giftcard, HappyFresh

Foreign: aCommerce, Omise

Local: MatahariMall, Giftcard, Bridestory, Telunjuk,

Ruangguru
Foreign: Prenetics, BitX

Lippo Group
[LDV and Venturra]

Corporate VC

SB-ISAT Fund

Corporate VC

Indonesia

Local: Dealoka, Qerja

Foreign: Techinasia

EMTEK Group
[Kreatif Media Karya]

Corporate VC

Indonesia

Local: HijUP, Bukalapak, Bobobobo, Kudo

Foreign: PropertyGuru

Skystar Venture
[Skystar Capital]

Venture Capital

Indonesia

Local: HijUP, Bridestory

Foreign: None

Convergence Ventures

Venture Capital

Indonesia

Local: Indotrading, Adskom, YesBoss, Qraved

Foreign: Paktor, Ematic Solutions

Mountain Kejora Ventures

Venture Capital

Indonesia

Local: Jualo
Foreign: None

Alpha JWC Ventures

Venture Capital

Indonesia

Local: Jualo, UangTeman, IDBlogNetwork

Foreign: None

Ideosource

Venture Capital

Indonesia

Local: 8Wood, eFishery, Stockbit, Bhinneka

Foreign: TuringSense

Indigo Incubator

Incubator Program

Indonesia

Local: Goers
Foreign: None

Indonesia

Investor List
Investor Name

Categories

Based

Portfolio 2015

Rebright Partners

Venture Capital

Singapore

Local: Indotrading, Kleora [Prelo

Foreign: None

GREE Ventures

Ventures Capital

Singapore

Local: Kudo, Touchten

Foreign: None

IMJ Investment Partners

Venture Capital

Singapore

Local: Kudo, Fabelio, YesBoss

Foreign: None

LGT Venture Philanthropy

Venture Capital

Switzerland

Local: Kakoa Chocolate

Foreign: None

Ardent Capital

Venture Capital

Thailand

Local: HappyFresh
Foreign: aCommerce

Sequoia Capital

Venture Capital

America

Local: Go-Jek
Foreign: None

CyberAgent Ventures

Venture Capital

Japan

Local: Ralali
Foreign: None

KK Fund

Venture Capital

Singapore

Local: Fabelio
Foreign: None

Linear Ventures

Venture Capital

Singapore

Local: Yogrt
Foreign: None

Asia Venture Group

Micro VC

SEA Region

Local: HappyFresh
Foreign: None

Investor List
Investor Name

Categories

Based

Portfolio 2015

East Ventures

Venture Capital

Local: Bornevia, Jurnal, Bridestory, WhatWeLike, Otten

Coffee, Livaza, Kudo, Ralali, Adskom, Cermati,
BerryKitchen, PopBox Asia, Talenta, IDNTimes, Konsula,
Jojonomic, Prinzio, RuangGuru
Foreign: Omise, Techinasia

Japan

Beenos

Venture Capital

Japan

Local: Bornevia, Ralali, Cermati

Foreign: None

Sovereigns Capital

Venture Capital

Japan

IN:: Giftcard, Bridestory, Berrykitche

Foreign: None

RMK Ventures

Venture Capital

???

Local: Giftcard
Foreign:: None

Yahoo Japan Capital

Venture Capital

Japan

Local: VIP Plaza

Foreign: None

Fenox Ventures Capital

Venture Capital

America

IN:HijUp, Bridestory, Talenta

Foreign: Techinasia

500 Startups

Venture Capital

America

Ajuven

Venture Capital

Singapore

GMO Gate Venture

Venture Capital

Japan

Local: HijUp, ZeemiTV, Kudo, Touchten, Fabelio,

HappyFresh, YesBoss, Qraved
Foreign: Omise, Ematic Solutions
Local: Vela Asia [Paraplou]
Foreign: Paktor
Local: Indotrading
Foreign: None

Golden Gate Ventures

Venture Capital

Singapore

Local: Indotrading, Laku6

Foreign: None

Investor List
Investor Name

Categories

Based

Portfolio 2015

DailySocial

Media Company

Indonesia

Local: Dicoding
Foreign: None

XL Axiata

Telco Company

Indonesia

Local: elevenia
Foreign: None

Ismaya Group

Hospitality
Company

Indonesia

Local: Bobobobo
Foreign: None

Undisclosed

Finance
Institution

Indonesia

Local: Goers
Foreign: None

Undisclosed

Undisclosed

Indonesia

Local: IDBlogNetworks
Foreign: None

Undisclosed

Jakartas
Institutional Investor
[early backer
Tokopedia]

Indonesia

Local: MobilWow
Foreign: None

Undisclosed

Jakartas
Institutional Investor
[Hospital & Property
Development
Copany]

Indonesia

Local: MobilWow
Foreign: None

Angel Investments
Angel Name

Funding in

Anonymous

Grivy

Badroni Yuzirman

Tees.co.id

Anonymous

SociaBuzz

ANGIN

Kakoa Chocolate

Anonymous

Kleora [Prelo]

Anonymous

Ralali

Roshni Mahtani

Fabelio

Sandeep Tandon
Anonymous
Anonymous

Goers

Anonymous
Indra Djokosoetono

Maskoolin

Andy Zain

Laku6

Toivo Annus

Qraved

ANGIN

Taralite

ANGIN

KitaBisa

Angels Club
Name

Angel Club

Name

Angel Club

Mariko Asmara

ANGIN

Shinta Dhanuwardoyo

Angel-eQ

Stephanie Hermawan

ANGIN

Sandiaga Uno

Angel-eQ

Veronica Lukito

ANGIN

Tony Fernandes

Angel-eQ

Johanes Soetanto

ANGIN

Erick Thohir

Angel-eQ

Izak Jenie

ANGIN

Erik Meijer

Angel-eQ

Iwan Tjam

ANGIN

Adi Sariatmadja

Angel-eQ

Diono Nurjadin

ANGIN

Emil Abeng

Angel-eQ

Harun Hajadi

ANGIN

Michael Steven

Angel-eQ

Christopher Angkasa

ANGIN

Adriani Onie

Angel-eQ

Revival of Angel Investors

On October 2015 ANGIN announced 11 new

members joining their angel network, adding to a
total of 26 Angels at the club.

Shortly after, Angel-eQ Network was officially

launched with15 initial members.

Indonesia now has 100+ angels who are ready to

invest in startup. Including both angel club
members and individuals investing in tech startups.

Our ecosystem needs much more

angel investments done. We cannot
sustain these many VCs operating in
the country without angel-invested
companies feeding their pipeline.
Dondi Hananto
Founder of Kinara Indonesia, Angel Investor

Tech
Investments
in Indonesia

Strategic Partnership
1%
Undisclosed
8%
3%
4%
Series B
4%
Seed
49%

Series A
30%

Seed
Series A
Series B
Series C
Private Equity
Undisclosed
Strategic Partnership

Investment by Categories
Categories

e-Commerce

Entertainment

Marketing
Platform

Payment
Gateway

Sharing
e-Conomy

Media

Social Media

Total

33

Categories

Hospitality

Wearable
Devices

Travel

Software

Developer
Hub

Daily Deals

Salary Portal

Total

Categories

Healthcare

Peer-to-peer
Courir

Game

FinTech

Logistic

Hardware
Agriculture

Virtual
Assistant

Total

Categories

Crowdfunding

Education

Total

Investment Categories
40

30

20

10

0
E-commerce

Marketing Platform

Media

Social Media

Wearable

Travel

SaaS

Healthcare

Fintech

E-commerce still got a lot of funding

because a lot of them already large
and mature. Market in Indonesia also
at inflection point this year.
Willson Cuaca
East Ventures

Investment by Quarter
(2015)
20

15

20
16

19
16

10

0
Q1

Q2

Q3

Q4

Active Investors

East Ventures with 20 activities, its including coinvestment to startup outside Indonesia. 18
Indonesia startups, 2 Outside.

500 Startups with 10 activities, including coinvestment outside Indonesia. 8 Indonesia startups,
2 Outside.

Lippo Group with 7 activities including coinvestment outside Indonesia. 5 Indonesia startups,
2 Outside.

Investment Trends 2016

Advertising
13%

What investors think will

be the next big thing in
tech investment

Fintech
11%

IoT
13%

On Demand
38%

SaaS
13%
E-Commerce
13%

Newly Announced Funds

Investor Name

Capital

Region

Formation8 [via F8 Asia Growth]

$400 M [expected]

SEA Region and South Korea

Aavishkaar [via Aavishkaar Frontier Fund]

$75 M [expected]

Pakistan, Bangladesh, Sri Lanka, &

Indonesia [North Atlntic Inc.]

Golden Gate Ventures

$50 M [expected]

SEA Region

Venturra Capital by Lippo Group

$150 M [expected]

Indonesia & SEA Region

Mandiri Capital

$ 36 M [expected]

Indonesia

CyberAgent Venture

$25 M [expected]

Indonesia

Startup Scene
Growth. Growth. Growth
DS Annual Startup Report 2015

The Hype

On Demand Services

Fintech

E-commerce

These 3 startup verticals has been seeing

a major traction both from consumer side
and from investor side, and are showing
no signs of slowing down in 2016.

On Demand Services (1)

Go-Jek rapidly grow as a king in this sector. Their vision is to

build that one app where consumer can facilitate AnythingOn-demand. By the end of the year, Go-jek has Go-Ride, GoFood, Go-Send, Go-Mart, Go-Box, Go-Busway, and recently
launched Go-Life (Go-Clean, Go-Glam, and Go-Massage).
Go-Ride became a massive service used by consumer in
Jakarta, Jogjakarta, Bandung, Bali and a few other cities to
outsmart the traffic using motorcycle transportation, while GoFood claimed as a market leader for food delivery service,
leaving FoodPanda and KlikEat behind. Its the prove that
Indonesian love to be served.
Another startup like Monolia come up with broader category
like photo services, household services, and so on. Go-Jek
has approximately 200 thousand driver partner, and rumours
on the street says that Go-Jek is now valued close to US$1bn
as the result from the latest stealth funding from Digital Sky
Technologies, a Silicon Valley VC led by billionaire Yuri Milner.

On Demand Services (2)

The new competition on the on-demand space, is

between YesBoss and HaloDiANA. Both companies are
essentially doing the same thing, private virtual assistant
startup trying to help consumer to do anything from
ordering food, paying bills, shop, buy movie tickets and
so on. Although both startups havent monetise their
service, but both are talking to platform owners such as
Go-jek and GrabTaxi to collect commission. HaloDiana
launched their Android app on Q4 in order to pump
recurring orders, while YesBoss is currently developing an
AI system using NLP to help machine communicate with
consumer, a huge risk, but if succeed, will make YesBoss
a highly scalable company.
YesBoss closed funding at around six digit figures lead by
500 Startups in September 2015.
In the other hand, Halo DiANA is a perfected feature of
Sribulancers virtual private assistant. Sribulancer is a
freelancer platform founded since 2014, and funded by
East Ventures.

Fintech Investments

Fintech is growing very fast. The urge to reach unbanked people in the whole
country quite fast, while e-commerce growth and adoption is really promising.
Fintech is the tool to escort the e-commerce vertical reach its best state.
Payment gateway itself has already established, the only thing that is left is
educating and giving the market financial products with or without banks
intervention in the simplest way. Major local players such as Veritrans, Doku,
CekAja, NgaturDuit, UangTeman, etc, named as a top of mind fintech player
in the industry recently.
The number of investment also grow in the significant amount:
Compare88 (parent company of CekAja) handed series A funding from
Monks Hill Ventures
Indotrading nabbed Series A funding worth $1,5 million
HaloMoneys parent company received $40M from Goldman Sachs, Nova
Founders Capital, and others
SinarMas Digital Ventures led investment into Omise $2.6M
Cermati closed seed funding from East Ventures
Stockbit Closed Seed Funding from Ideosource
Jojonomic grabbed seed funding from East Ventures
Taralite closed seed funding from ANGIN after incubated by GEPI
Indonesian Fintech Association FinTech Indonesia was founded in 17th
Sept 2015.

Notable E-Commerce
Investments

Lippo Group is the biggest spender in the industry, spent $500M at

MatahariMall in March 2015.
One of the early player Bhinneka injected $22M from Ideasource at
last.
Prinzio got $400K from Raksul and East Ventures
$1M given to Tripvisto from Gobi Partner
Laku6 secured seedfunding from Golden Gate Ventures and
Mountain SEA Ventures at undisclosed amount
Maskoolin grabs funding from Grupara, rumors said its around $1M
Telunjuk closed series A from Lippo Digital Ventures
HijUp secured another $1M from Fenox Capital, 500 Startups, and
EMTEK Group
Fabelio grabbed $500K led by 500 Startups
PropertyGuru booked $130M from Square Peg and EMTEK Group
Ralali booked Rp 33 Billion of Funding
Kudo secured series A funding from EMTEK Group
Prelo (known as Kleora) got $40K from Rebright Partners
iPrice Groups sealed seed from Asia Venture Group for $550K

Issues & Challenges

Government Regulation
7%
Infrastructure
12%

Capital availability
35%

Talent acquisition
46%

As a startup founder in Indonesia,

what is your biggest challenge?

Issues & Challenges: Talent

Talent is a big big big issue for tech

startups in Indonesia. Its very hard to find
digital savvy professionals across function,
but specifically in the tech department.
Talent war & poaching has been a
common practice among well funded
startups where they can pay up to 2-3x
salary + signing bonus in order to poach
people and grow their tech team. The root
of the problem: universities do not
produce enough tech talents with
ambition and drive to be able to work at
high-pace startup companies.

Issues & Challenges: Capital

Although most startups say that

capital availability is one of the
biggest problem, ironically, investors
has been saying that finding a good
founder/startup is very hard as well.
This proves the disparity between
investors and founders. A lot of
founders are still not ready to be
invested, although this number is
decreasing quite rapidly.

Founders Maturity

Startup founders nowadays

equipped with a lot of resources,
some failed in the past (first
generation startup founders, ca.
2009-2011) but they bounce
back well-prepared

Series A founders profile with

strong business model and
traction came from startup
background

Raise funding more than last

year, past experience in startup
making a huge point for investors

Notable
Mergers/Acquisitions

ADplus acquired by Yello Mobile

Lamudi Indonesia acquires PropertyKita

Kresna Graha Investama Acquires Three Startups

Rumah.com acquires RumahDijual

Fimela Media Network merged with KapanLagi

Network
KapanLagi Network acquired by Mediacorp

Quipper acquired by Recruit Holdings

Karir.com acquired by EMTEK

HipWee.com acquired by MigMe

ShopDeca acquired by MigMe

Conclusion
DS Annual Startup Report 2015

Conclusion (1)

Mobile e-commerce will become something big. Already some

players such as Carousell, Shopee, Coral, Lyke, SaleStock and
others trying to grab the e-commerce market.

O2O commerce is showing to be popular as a bridge between the

newly digitised market with e-commerce companies & services.

Financial technology shows huge early traction in 2015 and it will

only go up in 2016.

On-demand services has changed the landscape in 2015, and

will become stronger and stronger in 2016. The number of
investment and startups in this particular vertical is growing by the
day.

Conclusion (2)

More and more angel investor will come out and

start clustering via angel networks. This will help the
foundation of the investing scene in Indonesia.

A lot of conglomerates already getting into the tech

scene in 2015, and in 2016 we will see the laggards
starting to bring their offline strength online.

2016 will be the year of M&A, where a lot of

companies will either merge, getting acquired or
simply shut down.

Conclusion (3)

Current government has shown positive efforts in order to

help push the growth of the digital economy, although
there are still resistance from old traditional corporates with
strong lobbying power.

Ministry of Communications & Informatics led by

Rudiantara has been very actively involving industry
players in order to get feedback for regulations.

Although the government has been pushing some

regulations on e-commerce, local players has been very
rigorous in running against it. Government is not
showing signs of revising the regulation anytime soon.

2015
DS Annual Startup Report 2015

What is DS10

Every year, we create a list of 10

startups, 10 people and 5
investors that helped shape
Indonesias tech scene with their
significant contribution.

The objective is to give

recognition and appreciation to
what these entities are doing.

The list is sorted alphabetically.

#DS10 - Startups
online catering service
wedding directory
online financial portal
virtual private assistant
online furniture store

#DS10 - Startups
on-demand services
digital news outlet
e-commerce platform
online booking & dining
directory
virtual private assistant

#DS10 - People
Adrian Li - Managing Partner, Convergence Ventures

Affi Assegaf - Cofounder, Female Daily Network

Ben Soebiakto - Cofounder, Fimela Network

Cynthia Tenggara - CEO BerryKitchen

Diajeng Lestari - CEO & founder Hijup.com

#DS10 - People
Irzan Raditya - CEO & founder YesBoss

Nadiem Makarim - CEO Go-jek

Rudiantara - Minister of Communications & Informatics

Ryu Kawano - CEO Veritrans Indonesia

Willson Cuaca - Managing Partner, East Ventures

#DS5 - Investors
Indonesias Top Investors in 2015

For feedback on this report

: research@dailysocial.net
For business & partnership inquiries : bizdev@dailysocial.net

DS Annual Startup Report 2015