KitaBeli Announces 144 Billion Rupiah Series A Funding, Working on “Social Commerce” in the Regions

Platform social commerce WeBuy today announced the acquisition of series A funding worth $ 10 million or equivalent to 144,3 billion Rupiah. This round was led by a proprietary venture unit Gojek, namely Go-Ventures, and supported by AC Ventures and East Ventures as the initial stage investors.

The fresh funds will be used to expand service coverage across Java, grow its logistics network, and develop its mobile application. In addition, product diversification will also be carried out, starting with presenting beauty products. Since its launch in March 2020, KitaBeli claims to have succeeded in growing its business by up to 80%.

From our trials in using the application, currently it is only limited to serving a few areas in the provinces of Central Java, West Java, East Java, DKI Jakarta, and Banten. At a glance how it works like an app E-commerce, just focus on serving daily needs; and can form purchase groups (currently via instant connection to form WhatsApp groups).

The delivery options provided are also from KitaBeli's internal logistics with a maximum delivery claim of H+1 days. The model is through a network of partnerships that have been built in each area of ​​operation. This concept is considered to be effective, considering that daily needs do require the delivery process as soon as possible.

According to an official statement, this application will be focused on users outside big cities, including people who have never done shopping before online previously. According to Co-Founder & CEO Prateek Chaturvedi, the business model social commerce that connect businesses with end users enabling them to form and maintain greater loyalty.

Not relying on base reseller

Services social commerce quite mushrooming in Indonesia. Super Apps also focuses on a similar concept in rural areas. But just like any other platform – including Woobiz, RateS, BorongBareng, or RateS – the model partnership formed in the form of reseller. In addition to being the final consumer, the community is encouraged to be a bridge between business and customers with a commission system.

KitaBuy is a little different, they don't build a network reseller or marketing agency. Every item is ordered directly through the app by the end user (direct-to-consumer), enabling them to participate in group purchases for more effective pricing. Prateek also said, this concept allows the company to minimize the risk of losing its customer base if an agent/partner decides to quit.

KitaBeli was founded by Prateek Chaturvedi, Ivana Tjandra, Subhash Bishnoi and Gopal Singh Rathore. KitaBeli application users invite their acquaintances or join to form groups based on proximity, then buy products together at a discounted price. Pinduoduo in China is a successful example of this business model.

"With the concept of sharing and inviting your friends to join the app, our users get more discounts. They can also see what their friends are buying, and join the group of friends, to get cheaper prices," explained Prateek in a previous interview with DailySocial.

Go-Ventures Investment

Responding to his investment, SVP Investment Go-Ventures Aditya Kumar said that penetration E-commerce outside big cities is still low. There are several factors, including lack of trust, product availability, and high logistics costs. The business model that KitaBeli works on is considered relevant to solving these challenges.

It has not yet been announced whether there will be further integration between KitaBeli and Gojek, remembering one of the missions venture arm This forms a consolidation of ecosystem strengthening.

For local startups, Go-Ventures has invested in several other players. Including leading the series B eFishery funding, leading the Pluang series A funding, as well as investing in the Kumparan and Narasi media platform.

Pluang itself is now integrated form the GoInvest feature, easy for users Gojek invest gold online. Likewise, coil news that was presented also through the application Gojek.

Meanwhile, for startups outside Indonesia, some of the investments announced include funding to platforms ride hailing Uganda named SafeBoda, platform Esports Mobile Premier League (MPL) from India, and startups cloud kitchen Rebel Foods from India.

Rebel Foods has been brought to Indonesia to form business line cloud kitchen new under Gojek Group. Meanwhile, MPL's presence in Indonesia is also supported by Gopay payments as an initial payment platform.