Indonesia's KitaBeli receives US$10mil Series A funding
By Digital News Asia March 25, 2021
- Funding round led by Go-Ventures, AC Ventures and East Ventures
- Funding to expand operations deeper into country; secure logistics network
INDONESIA-based social commerce platform KitaBeli has announced a successful closure of their Series A funding, totalling US$10 million.
The funding round was led by Go-Ventures, with participation from KitaBeli’s existing investors AC Ventures and East Ventures, the company said in a statement.
KitaBeli’s mobile app allows users to share product price information with their social circles, and build teams in order to purchase desired items at increasingly competitive prices.
Over time, the platform aims to connect suppliers and farmers to tens of millions of consumers in Tier 2-4 cities across Indonesia, it said.
Unlike other social commerce models that utilise agents to sell in their communities, KitaBeli’s users place orders directly on the KitaBeli platform. The company will continue to focus on deepening their direct consumer relationships going forward.
Since its launch, KitaBeli has seen a strong growth of over 80% month on month, with a low cost per install rate of US$0.10, the startup claimed.
Currently, KitaBeli’s users spend an average of US$70 per month on the platform. This translates to a wallet share of 35% in the product categories available on KitaBeli, it said.
“We launched KitaBeli in Jakarta in March 2020, and have expanded to Solo and Malang – both Tier 2 cities in Indonesia, where we’ve seen strong growth,” said Prateek Chaturvedi, chief executive officer (CEO) and co-founder of KitaBeli
“We shall be using the funds from this round to expand operations deeper into Java, developing a secure and efficient logistics network.
“On the product side, we shall focus on building a more interactive and user-friendly, mobile-first shopping experience for our customers,” he added.
KitaBeli has implemented a partner-based delivery network, where individuals within the community earn commissions for performing last mile delivery of ordered items, the startup said.
According to Ivana Tjandra, co-founder and COO of KitaBeli, it empowers their delivery partners to fulfil more than 100 orders per day and they “earn a substantial amount that supplements their family’s income.”
“Community fulfilment is critical to establishing an efficient logistics chain, as well as delivering low-cost/ high-quality products,” said Tjandra.
“We focus on providing high frequency items, such as fast moving consumer goods and fresh produce - items that home-makers use on a daily basis. We plan to expand into beauty, fashion and electronics to build out higher SKU coverage,” she added.
Aditya Kumar, senior vice president of investments for Go-Ventures, said: “E-commerce penetration beyond the large metros has remained low, predominantly because of lack of trust, poor product availability, and high logistics costs.
“Kitabeli is well positioned to address these challenges through the social nature of its product, accelerating online shopping for a new generation of users and bringing the benefits of e-commerce to a wider population across Indonesia.”
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