KitaBeli receives $20 million in funding, social e-commerce is developing rapidly in Indonesia

Recently, Indonesian social e-commerce platform KitaBeli announced that it has completed US$20 million in strategic financing .

Qichacha shows that before this, KitaBeli had completed its A and A+ rounds of financing in March and September 2021, respectively. The A round of financing amounted to US$10 million, and the A+ round of financing amount was not disclosed. Among the four investors in this round of financing, Go-Ventures and AC Ventures are old investment members in March 2021, and Glade Brook Capital Partners and Innoven Capital are new investors.

KitaBeli was co-founded by four partners in 2020. It is a social e-commerce platform focusing on group buying. It provides e-commerce services for agricultural products and fast-moving consumer goods in many small cities in Indonesia. The model is similar to the domestic Pinduoduo group buying. Buyers can directly participate in group buying and place orders through the KitaBeli application to purchase goods at a lower price. It is hard to imagine that KitaBeli has received tens of millions of dollars in financing in less than two years since its establishment.

Image source: KitaBeli official website

KitaBeli's main business is selling fresh agricultural products and fast-moving consumer goods to various regions in Indonesia. According to foreign media reports, KitaBeli intends to use the funds from this round of financing to expand its business in Indonesia and launch new product categories such as beauty, personal care, frozen food and maternal and child products.

It is reported that Indonesia's second-tier and third-tier cities have a market of more than 100 billion US dollars, with about 200 million consumers in these areas, contributing more than half of the country's GDP. According to data released by KitaBeli, since its launch, KitaBeli's business has grown by 80% per month, with an installation cost of 10 cents per user, and platform users spending an average of 70 US dollars per month on the platform.

It is precisely because of this market potential that KitaBeli has continued to expand its business. In less than a year and a half, it completed three rounds of financing, attracted many investors to join, and the total financing amount exceeded US$30 million.

Nowadays, the group purchase and community group purchase models are being adopted by more and more social e-commerce startups in Indonesia. There are also many social e-commerce startups like KitaBeli in Indonesia , which are favored by capital, such as Super, Chilibeli, RateS , Grupin , etc.

It is understood that Super recently received US$70 million in Series C financing; Chilibeli completed a 10 million yuan Series A financing in early 2020; RateS completed a 6 million US dollar A+ financing in early 2022; Grupin completed a 3 million US dollar strategic financing in early 2022. At present, Indonesia's social e-commerce industry is still in its infancy, and no unicorns have emerged yet. These companies have great potential.

In addition to these local startups in Indonesia, Chinese e-commerce giants Alibaba and JD.com have also made plans for the Indonesian market. Alibaba's Lazada is one of the top platforms in the Indonesian e-commerce market. JD.com Indonesia has also laid out a logistics warehouse and distribution system in addition to its platform business, and has invested in many industry-related companies in Indonesia.

According to a survey report by Statista, the number of online shoppers in Indonesia has exceeded 130 million in 2020, and is expected to reach 220 million by 2025. This means that Indonesia's social e-commerce industry is growing rapidly, and the demographic dividend of the Indonesian market will gradually become prominent in this industry.

KitaBeli

Indonesian Market

Social e-commerce