Approaching Profitability, Otoklix Ambitions to Lead the Automotive Aftermarket Sector

Automotive startup Otoklix announced that it has achieved 2x annual (YoY) revenue growth in the last two years and is now approaching profitability.

To strengthen its position as a pioneer aftermarket Indonesian automotive, they plan to open their own repair shop to increase margins and are exploring B2B partnerships with corporations - Telkom is one of them.

Otoklix also entered into a strategic partnership with Pertamina to restore the Bright Olimart service network at the company's petrol stations.

"Our double-digit growth in positive unit economics shows that we are on the right track. As we approach profitability, we are ready to capture a larger market share and set new industry standards. This will make Otoklix the main choice for automotive maintenance in Indonesia," said Founder & CEO of Otoklix Martin Reyhan Suryohusudo.

This growth is said to have been realized faster than the growth in its main income. Otoklix targets to achieve profits in one year by looking at the business model and the high demand for their services in the market.

Founded in 2019, Otoklix has obtained series A pendanaan funding worth $10 million (equivalent to IDR 143,5 billion) led by Alpha JWC Ventures and AC Ventures in 2021. Other investors who participated included Surge (Sequoia Capital India), Ex-CEO Astra International Prijono Sugiarto, YouTube Co-Founder and Google Executives on Steve Chen's XA Network.

The Otoklix platform offers a vehicle maintenance process for vehicle owners with claims that the process is easier, standardized and transparent. Users can find recommended independent workshops in their surroundings and receive guarantees for transactions at locations that collaborate with Otoklix.

Meanwhile, for workshops, Otoklix provides customer relationship and supply chain management software developed to increase revenue, margins and operational efficiency.

Pioneer aftermarket electric vehicle

Martin assesses the sector aftermarket Indonesian automotive industry is hampered by a number of outdated challenges. Vehicle repair services in Indonesia are quite complicated. Dealer Officials face high costs and long waiting times.

On the other hand, the independent repair shop sector, which controls 80% of the market, experiences other problems such as the risk of fraud, lack of standardization and unsatisfactory after-sales service. In fact, many independent repair shops use manual methods to manage transactions which can hinder their growth and profitability.

However, there is huge untapped potential in this sector, for example developing digital solutions to simplify vehicle maintenance and independent workshop operations. Sector aftermarket Indonesian automotive is said to be one of the largest in Southeast Asia with an estimated value of $16 billion.

He believes that the Indonesian market is ready to adopt technological innovations that can overcome problems in the automotive sector. For this reason, Otoklix is ​​currently preparing a number of strategies and services to become the first pioneer in the sector aftermarket electric vehicles coming soon.

The company will develop AI exclusively to automate data processes so that it can increase efficiency in workshops. Apart from that, Otoklix will also increase the capability of the workshop team to service electric motorbikes. "Our plan is to play a central role in improving electric vehicle infrastructure in Indonesia.