The Importance of Diversification and Innovation in the Midst of a Pandemic

Ultimately, for a business to survive, the best way is to adapt to change. When the pandemic lasts for a long time and disrupts business operations, it's a good idea for startups to make adjustments and diversify.

With the increasing difficulty of raising funds, startups are required to generate new business opportunities, which not only help increase revenue, but also become a source of income added value to survive the pandemic.

In an article, the leading venture capital company Sequoia mentions, the current condition is black swan. When conditions are experiencing a downturn, income and cash become the main focus rather than expenses.

"As Darwin summarized, the survivors were not the strongest or the smartest, but the most adaptable to change."

Apply survival mode

DailySocial take down, slowly but surely, various startups add service type that are relevant today.

• Titipku, a startup from Yogyakarta that initially focused on empowering MSMEs, is now introducing a location-based service feature. This service was developed to make it easier for users to find merchants to shop.
• Logistics startup Deliveree has launched an online grocery shopping platform that can be accessed directly on the app. This feature is equipped live chat or call to get directly connected to the store.
• Mobile advertising platform Ub Iklan exploring a new business called UbiFresh. They offer online grocery shopping through an app.
• Platform property management Travelio brings several new innovations, including launching TravelioMart as a platform for selling fresh foodstuffs, such as vegetables, fruit, various variations of meat, and other basic household products for tenant company.
• SweetEscape's on-demand photographer platform offers a new solution that is expected to become a trend, namely Virtual Photoshoot and Terrace Photoshoot.
• Halodoc also added new features aimed at helping users consult about their mental and mental health. Through features Mental Consultation, Halodoc trying to help those in need.
• Zalora, which has been focusing on fashion commerce services, presents a new category, namely health and household products, to make it easier for families to complete various needs. This strategic step was taken according to the needs of the community during the pandemic.

Innovation attracts investment

As the Covid-19 pandemic becomes a nuisance, venture capital firms are tightening investment assessments and identifying priorities. For early-stage companies, planning to continue funding to advanced stages becomes more difficult.

On the other hand, this pandemic has provided a positive acceleration for the adoption of several technology sectors. Sectors such as e-commerce, healthtech, EdTech, and logistics in general have actually improved.

"We also see a high number of e-commerce transactions during Eid, despite the pandemic. People are now also more open to medical tele-consultation via Zoom [..] With limited physical interaction, the solutions provided by technology companies have become a necessity. so that people's lifestyles can return to normal," said Alpha JWC Ventures Partner Eko Kurniadi.

Technology adoption helps accelerate digitization in traditional industries. Going forward these changes will continue to spread to other industries, including FMCG, F&B, finance, agriculture and entertainment.

The pandemic has created an opportunity for more conservative consumers to try technology products that offer convenience. However, how long this momentum will continue is highly dependent on the ability of businesses to create dependency on their products or services.

According to Kolibra Capital Partner Teezar Firmansyah, startups can provide a positive response during the pandemic and can adapt to current conditions.

Kolibra sees this as a crucial time for startups to show their identity. Are they able to compete and offer new innovations to customers.

"The current Covid-19 pandemic is indeed quite changing the landscape of the startup business. [..] This is a test survival of the fittest, where startups can adapt to changing trends from the market will be able to survive," said Kevin Wijaya from CyberAgent Capital Indonesia.