Catcha Group: Fintech and Healthtech Predicted to be Indonesia's Next Unicorn

Earlier this year, Catcha Group released eight predictions for the startup industry in Southeast Asia. Now Catcha Group has released three further predictions regarding the future of the Indonesian startup industry in 2020.

First, funding to Indonesian startups is predicted to surpass Singapore. This is reinforced by Indonesia's target of adding startup status unicorn next as stated by the Minister of Communication and Information Rudiantara.

According to Patrick Grove, Co-founder & Group CEO of Catcha Group, the goal is to have more than four unicorn in the next few years, Indonesia has the potential to overtake Singapore as the country with the largest funding allocation in Southeast Asia today.

Then another fact is that Indonesia has a large market with population as its strength. Indonesia's digital population reaches 131 million, much larger than Singapore, which is only 5 million. Currently, the total capitalization of large startups in Indonesia is $20 billion, while Singapore's is $22 billion.

Not only that, Grove also revealed deal Series C funding is on the rise in Indonesia despite slow growth. Singapore is just the opposite.

"Indonesia's position with a market 26 times larger than Singapore provides room for significant growth as seen from the total funding injected into Indonesian startups," said Grove.

The second prediction is that Indonesia will hold the largest portion as a producer.Next Indonesia unicorn" or Nexicorn (startup) is worth $100 million. The growth of internet users, economic development, high opportunities for investment injections, to... marketsize will encourage Indonesia to achieve this.

Fintech and healthcare Investors are starting to hunt

In line with the above, Catcha Group predicts that there are two unicorn next in Indonesia, and each comes from the sector fintech and healthcare. These two sectors are considered to be dominating the growth of startups in the country.

Happen healthcare Indonesia is predicted to reach $363 billion in 2025, an increase of 18 times from $20 billion in 2010. The magnitude of this value is also driven by high demand for health services.

As stated by VP Products Halodoc Alfonsius P Timboel, the Indonesian health industry is experiencing many challenges, such as the lack of medical personnel. Currently there are only 160 thousand doctors in Indonesia who serve the 250 million Indonesian population.

There are two startups that fill the digital-based healthcare service market in Indonesia, namely Halodoc with a valuation of $ 13 million and Alodokter with $ 12,1 million.

Switch to fintech, there are many players who enter the Indonesian market. It's natural considering every startup is trying to take this huge market pie. Reports reveal that 64 percent of Indonesians over the age of 25 do not have a bank account (unbanked). This represents strong potential for startups fintech

Talk marketsize, its value in Indonesia in 2017 reached $22 billion, the estimate will skyrocket to $54 billion in 2025. As for service penetration fintech in Indonesia has reached 46 percent of the 133 million internet users.

Because of this, local and foreign investors have strong reasons to inject funds outside the sector E-commerce because of the incessant efforts of local companies to enter the market and the government that has begun to provide support to this sector.

As an illustration, deal funding for fintech startups in Indonesia has continued to rise from just three in 2014, increasing to 11 (2015), 21 (2016), and 53 in 2017.