Fave Group's Four Great Strategies to Develop E-Voucher Business in Indonesia

Discount e-voucher sales platform Groupon Indonesia, which is now re-branding menjadi Fave, announced four major strategies that will be carried out this year to increase transactions as well as the number of users. Fave also plans to continue to seek fresh funds to support the company's strategy.

To DailySocial, General Manager of Fave Group Yew Wai Kong explained the four big strategies. First partnering with strategic partners to increase added value for users Existing and potential users. Fave now encourages transactions through the use of applications, it is claimed that around 70% of total transactions come from there.

Meanwhile, the only form of strategic cooperation that can be announced is with XL Axiata. XL users who subscribe to the XL Xtra Combo package can redeem a unique promo code with additional discounts for all offers on Fave. The promo code can be exchanged for the main quota of their data package.

"At least by the end of this year there will be about two additional partnerships announced. This strategic partnership is our step in strengthening Fave's presence in big cities in Indonesia. There are many partnerships that can be done, for example telco operators, banks, e-commerce, or others," he said, Tuesday (23/5).

The second strategy, he continued, is to increase transactions by presenting various special campaigns. For example, currently it presents special offers valid during the month of Ramadan only.

Third, increase the number merchant listings with expansion to various big cities in Indonesia. Several cities that Fave has targeted after Jabodetabek are Bali, Bandung, and Surabaya. Other cities that are ready to be targeted this year, such as Manado and Medan.

"We already have a special team for Bali, Bandung, and Surabaya. They will complete the number of merchant listings on Fave, because currently from 1.200 listing almost 70% of them are in Jabodetabek."

Lastly, exclusive collaboration with various brand owners to answer Fave's challenges in facing competitors with similar business segments, as well as from the marketplace which has now started selling discount e-vouchers.

"Players who provide e-vouchers have now been penetrated by marketplace services, to answer this challenge we want to increase exclusive partnerships with brand owners. There are some brands that can only be found in Fave."

However, Yew is reluctant to reveal the target of Fave users this year. He only said that this strategy is expected to attract more new users. Yew claims that currently Fave has more than 1,5 million active users with a total of 1.200 merchants. It is said that more than 1 million vouchers are sold every month.

As for the categories of vouchers available, 70% are in the form of food and beverages (F&B), beauty, activities, services and leisure.

"Our commitment to expanding Fave's existence in Indonesia is quite large, there is a team engineer in Kuala Lumpur who will help the Indonesian team," he continued.

Looking for fresh funds

To support Fave's entire business plan in Indonesia, as Fave's largest market after Malaysia and Singapore, Yew revealed a plan to seek fresh funds.

"Yes we have plans for raising funding This year. We want there to be integration between our business and the companies of potential investors. The goal is to increase our transactions and provide more value for users."

Fave's parent, KFit, which was established in February 2015 in Malaysia, has previously received fresh funds three times. Finally, KFit received series A funding of US$12 million from Venturra, SIG, ADIF, and others.

"Previously we received funding from Sequoia, which is an investor from Go-Jek, Traveloka, Tokopedia, and others. We want [investors] like that to be able to integrate our business into their portfolio companies," he concluded.