Proptech Startups in Indonesia, from Business Models to Competition Map

Technology startups in the property sector, or so-called proptech (property technology), seems to be making a profit in the midst of the growing number of urban communities in Indonesia. They try to accommodate the need for housing or shelter – houses or apartments at most. So far, looking at those already operating in Indonesia, there are several forms of services offered.

In general proptech  alone defined as the use of information technology to help users search, buy, sell, and manage real estate. Currently, there are various forms, starting from the site listing property, platform Virtual Reality to improve user experience, rental system, to property financing.

Business models and services

Judging from the vision, service proptech divided into three categories. The first is the use of technology to provide a digital touch in the property unit itself. There are various forms, ranging from the application of sensors internet of things (IoT) to automated monitoring systems utilizing cameras equipped with artificial intelligence.

At the global level, various supporting tools for smart home many have been produced, for example Switchmate namely a smart switch that can be controlled via a cellphone. Tech giants such as Apple and Google have also begun to give their own focus to this need. While at the local developer level there are not many, but they have started to emerge. One of them is a smart lock product that is produced Sugar tech.

Second, there is a rental platform, this is the most common in Indonesia. They try to simplify business processes from upstream to downstream. Starting from providing a place for property owners to promote their units, making it easier for users to find properties according to their criteria – several platforms provide consulting services, to become intermediaries in the rental process.

Some of the related platforms include Lamudi, Travelio, Rumah123, 99.co, and Rumah.com – although some offer different services and features. For example Travelio, departing from hotel room rental services, now they provide accommodation for renting houses, villas, and apartments. Not only advertising property units, they also help owners manage and operate.

Recently site listing Mamikos boarding house also introduces their new service called Mamirooms. The concept is the same, apart from promoting the available room units, they are now helping property owners to manage. This includes improving property standardization, operations, and marketing.

The third business model accommodates the financial aspect. The credit mechanism is by far the most popular for buying and selling real estate units. To make the process easier, some startups start playing there. Starting from helping provide comparisons and calculations, bridging credit access with banking, to providing services p2p loans to help with financing.

CicilSewa and Gradana are two examples of startups in the property sector that focus on financing. Services provided InstallmentRent provide bailouts for property financing to users. While Gradana is using the scheme p2p loans for property credit loans – including providing loans to make down payments.

Startup competition map proptech

In early 2018, Singapore-based property site developer 99.co officially announced its acquisition of the local platform Urbanindo. Shaped full acquisition, now the Urbanindo team and products are merged into the 99.co Indonesia service. Since launching its presence in Indonesia, 99.co's services have continued to step on the gas as a platform for intermediary for real estate buying and selling transactions.

It didn't just stop there, after getting funding of 216 billion Rupiah, the company entered into a strategic partnership with the REA Group, which previously acquired iProperty -- including the Rumah 123 platform. Through this partnership the two companies formed j to win business together proptech in South East Asia.

REA also invested 113 billion Rupiah for business development. This is because iProperty's business operations in Singapore and Rumah123 in Indonesia will be managed together. 99.co Co-Founder & CEO Darius Cheung will lead.

Apart from the two groups of companies, PropertyGuru also operates a business unit in Indonesia. They run two sites, namely Rumah.com and Rumahdijual.com which were acquired at the end of 2015. In Indonesia, its operations are also supported by the EMTEK Group conglomerate as an investor in the round of series D pendanaan funding.

Lamudi is also a site developer listing property that airs in Indonesia. They have been present since 2014. One year of operation, in 2015 the company acquired the PropertyKita platform. Apart from Indonesia, currently they also operate in the Philippines. Meanwhile, Lamudi's operations in the Middle East have been acquired by Emerging Markets Property Group in the middle of this year.

If the common thread is drawn, of all the players who lead the market – one of which is judged by the visit statistics and company valuations – are regional players. The business model is similar, prioritizing points "sharing" spiced up by selling promotional and marketing services in collaboration with property agents.

Property financing

Bank BTN is a BUMN that is focused on property financing. To reach a wider market share, they developed the concept proptech through BTNProperti.co.id which presents listing complete with access to financing. Basically sites listing or marketplace previously discussed also provide recommendations for credit financing through partner banks. In Indonesia, almost all banks have Public Housing Credit (KPR) products.

Want to provide comprehensive access, platform from Singapore CloseBuy Asia Pacific a few months ago officially announced its presence in Indonesia. Through the app mobile devices, they assist users in choosing property units and access credit financing through partner banks. A fairly new innovation was also presented by local Gradana players. As mentioned earlier, they integrate the system p2p loans for financing, targeting users from the community who have not been served by banks (unbankable).