A collection of 17 Indonesian E-commerce Companies that Failed to Exist Since the 2000s

According to data Google-Temasek, the population of "internet" in Indonesia amounted to about 150 million people. Internet infrastructure has also reached areas far from urban areas. Many business companies see these two things as provisions for growing the industry E-commerce.

Then they confidently take part in the industry. But the roast turned out to be far from the fire. The fortunes of a number of companies were not as good as imagined until they were forced to stop their activities.

Recently platform e-marketplaces special handicraft named Qlapa shut down service its operation after being active for almost 4 years in the industry E-commerce homeland. Qlapa is not the first to come out of this internet-based trading industry. In fact, there are many companies that have fallen in the field first E-commerce Indonesia. Through this article, the iPrice team summarizes the company E-commerce which failed to shine since the era of the 2000s until now.

Multiply

In the period 2008-2010, Multiply able to become a very popular social media network in Indonesia. With user activity that is quite intense, Multiply tries to apply business strategy E-commerce on its website. Moreover, Naspers, who is the main investor in Multiply, wants to develop the industry E-commerce in Indonesia.

Platform marketplace named Multiply Commerce was released in 2011. To show commitment to development E-commerce, Multiply also moved its office from Florida to Jakarta. Unfortunately, the change in business strategy to a platform marketplace this does not bring significant benefits.

One of the reasons is that Multiply is unable to respond to problems that arise among users in the transition of the social networking business model to E-commerce. Until then Naspers stopped all investment in Multiply and switched to Tokobagus. Multiply inevitably closed its operations in 2013.

Good store

Tokobagus is a buying and selling site that originally used the concept of classifieds type ads consumerto consumers (C2C). This means that each user can directly upload sales posts or search for goods. Started operation in 2005, buying and selling site online This is one of the industry pioneers E-commerce in Indonesia.

In 2010 this site received an investment from Naspers which at the same time has a buying and selling site in the global market called OLX. 2013 was a golden moment for Tokobagus. Reported from e27. co there are 1 billion visitors per day on that site. This achievement makes Tokobagus enter as one of the five largest classified ad sites in the world.

Because of this brilliant achievement, Tokobagus was finally fully acquired by Naspers and changed its name to OLX Indonesia in 2014. However, OLX's popularity in Indonesia is not what it was when it was named Tokobagus. This site is not competitive with the platform E-commerce local companies that appeared later, such as Bukalapak, Tokopedia, or Blibli.

Rakuten

Rakuten officially comes to the industry E-commerce Indonesia in 2011 by cooperating with MNC Group as a local business partner alias j. According to records DailySocial, Rakuten owns 51% shares, while MNC Group gets 49% shares. The total initial investment of both parties is around Rp60 billion.

Rakuten's activities in the industry E-commerce Locally it only lasted 5 years. This Japanese company stopped its activities in Indonesia in 2016. Reported from Reuters, Rakuten's withdrawal from the local market in the country due to a shift in the business model that is not in accordance with the initial concept. Company E-commerce it wants to focus more on the C2C business model.

Plaza.com

Plasa.com begins to focus on the field of E-commerce since 2010 after previously operating as a webmail service. Funding for this shopping portal was initiated by the government through the state-owned company Telkom. A year later, Plasa.com announced its partnership with eBay. With this collaboration, products sold on Plasa.com can appear on the eBay site to be known more widely by global consumers. But in 2014 eBay bought 40% of Plasa.com shares and followed the name change to Blanja.com.

Shop

Shopo is a company E-commerce which focuses its business on handicraft products. The company started its activities in 2013 with funding support from a large Indian company called Snapdeal.

Reporting from Okezone, Snapdeal had injected funds of US$ 100 million to Shopo in 2015. However, this investment did not bear significant fruit because the C2C business model promoted by Shopo did not receive a positive response from the market. Finally this company completely stopped activities in the industry E-commerce in 2017.

Valadoo

Valadoo is a site E-commerce specialized in travel that was founded in 2010. When this company emerged, the industry E-commerce special travel still no players. Two years later, Valadoo managed to get early-stage funding from a similar company from Singapore called Wego.

Even though I got seed funding, Valadoo was not able to make a clear business direction. Because of this, the company finally decided to merge with Burufly, which also received funding from Wego. But finally in 2015, Valadoo said it closed all of its services due to differences in culture and business models.

Scallops

Scallope is an e-commerce portal that provides a variety of fashion products from well-known young Indonesian designers. Reported DailySocial, the company was founded in 2012 and is funded by Suitmedia Group. At that time, Suitmedia Group also supervised Bukalapak and Hijup.

However, in its development Scallope lost competitiveness with the company E-commerce others who also focus on the field of fashion. Moreover, Suitmedia Group sees Hijup's position as more potential than Scallope. Finally Suitmedia Group downsized by closing Scallope in 2016.

Paraplou

Paraplou is a site E-commerce special fashion which was founded in 2011. The company had received a Series A investment of US$1,5 from Majuven, a venture capital from Singapore.

In 2015 Paraplou announced that the company was closing. In notes Tech in Asia, factors such as an unformed market, uncertain financial conditions, and difficulties in obtaining sustainable funding forced Paraplou to go out of business E-commerce.

Chipika

Cipika has been developed by Indosat Ooredo since 2014. Site E-commerce it adheres to a business model business-to-consumer (B2C) with superior products in the electronics and food categories.

However, Cipika did not last long because the development of the B2C model at that time was considered slow. Indosat Ooredo officially closed Cipika service in 2017.

Lolalola

Lolalola launched in 2015 as a site E-commerce which targets women's underwear products. Lolalola's funding was obtained from Ardent Ventures from Thailand. Unfortunately, the company that was present for this specific market share was forced to stop operating in 2017.

Cleora

Initially, Kleora was here to accommodate the shopping needs of women's products. This company had received funding from Rebright Partners and investor angle. But unable to capture the market's enthusiasm, Kleora finally transformed into E-commerce specialized in buying and selling used goods named Prelo since 2015.

Beautytreats

Beautytreats is an online selling site for beauty products that has been operating since 2013. According to DailySocial, this company was able to ship 3000 beauty products within 6 months of its operation. Beautytreats also managed to attract 8000 members from various regions in Indonesia. But this company did not live long. In 2015 Beautytreats officially stopped operating.

Lamido

Lamido was founded in 2013 by the incubator company Rocket Internet, which also grew Lazada. Site E-commerce type customer to customer (C2C) focuses on middle to lower sellers who distribute merchandise through social media networks such as Facebook or Instagram.

The types of products that are common in Lamido include the category of electronics and fashion. But in reality, the container marketplace presented by Lamido was less popular than local e-commerce companies such as Bukalapak and Tokopedia, which both had the C2C concept at that time. Moreover, Rocket Internet sees the position of Lamido and Lazada overlapping each other in the local market. Therefore, Rocket Internet chose to merge Lamido with Lazada in 2015.

Berniaga.com

Berniaga.com is a classifieds site that focuses on doing business customer to customer (C2C). In notes Kompas.com, this site first started operating in 2009 with funding support from 701 Search Pte Ltd which is owned by a joint venture between Singapore Press Holdings (SPH) and Schibsted Classified Media (SCM). Berniaga.com in 2014 was actually acquired by OLX Indonesia because of the same business concept. Reported Indonesian CNNAt that time, OLX's parent company wanted its brand to be the sole ruler in the Indonesian market.

kitchen

The kitchen is a platform marketplace which focuses on culinary products. The company was founded in 2011 and is supported by the incubator Nokia Entrepreneurship with a capital of IDR 200 million. But Sedapur is not able to operate for long. In 2013 the company closed its operations due to a business strategy that did not work as it should.

Soegianto Widjaja, who at that time served as CEO of Sedapur admitted that his company's strategy was only focused on merchant and not prioritizing buyers. In addition, the failure to get new funding also makes it difficult for Sedapur to survive in the industry E-commerce.

MatahariMall.com

MatahariMall.com officially operated in 2015 as a subsidiary of the Lippo Group. An investment of around US$500 million is the initial operational capital. Site E-commerce it adopts a business model online to online and offline to offline (O2O) which allows buyers to transact at various physical store branches of Matahari Department Store. This business concept was inspired by Walmart which also used O2O first.

However, in 2018, MatahariMall.com merged into Matahari Department Store's main online business unit, Matahari.com. Reported from Bisnis.com, this merger step aims to make Matahari.com the sole online shopping channel of the Matahari company.

Qlapa

Qlapa is an online platform for selling handicraft products that has been in operation since 2015. The company received a Series A investment from a company called Aavishkaar from India.

However, in early 2019, Qlapa announced a complete cessation of operations. In Qlapa's press statement, the company stopped operating for business reasons which were deemed unprofitable and sustainable.

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This article was produced by the team iPrice Indonesia. Periodically, iPrice releases in-depth reports on e-commerce, startups, and other related topics in the industry.