Moka's Five Years Journey and His Ambition to Become a “Super App Merchant”

Player onslaught point-of-sales (POS) which is increasingly crowded is actually not a problem, because its biggest enemy is inefficient cash payments. There's still a lot of homework to do everyone stakeholder to resolve various issues in support of business, especially SMEs, providing convenience for its customers to transact.

Moka is one of the players in this sector. Now they don't just want to be known as a POS provider, but have established themselves as a POS provider "super app merchant", accompanied by the company's expansion into other product verticals that function to support the business merchant itself.

Super app merchant is a new term that the company wants to intensify, because so far the public is more familiar with great app, but more towards products used by end consumers.

"In the first three years we strengthened POS because it was complex to be able to serve merchant small to large; from POS, management, CRM, inventory. Then in 2019 we start scale up new products, such as Moka Capital, Moka Pay, Moka Connect and Moka Fresh," said Moka Co-Founder and CEO Haryanto Tanjo, in a limited interview with several media in his office, yesterday (20/2).

To be great app, meaning that the company emphasizes the element of collaboration with partners to build an ecosystem. Almost all product verticals at Moka are the result of collaboration. According to Haryanto, to attract more partners, his business adopts the concept of an open ecosystem to make API integration easier.

Moka Capital is the result of collaboration with the company p2p loans that makes it easy merchant get access to capital for business development. Its partners are KoinWorks, Taralite and Modalku. It is said that since its release at the end of 2018, it has disbursed more than Rp40 billion for 300 merchant. The loans offered start from Rp. 5 million to Rp. 2 billion and tenors of three months to 18 months.

Next, Mocha Fresh form marketplace to help merchant culinary supplies supply raw materials online. The company partners with players such as Sayurbox, Blibli, Greenfields, Diamond, Unilever, Bogasari and ABC. In total, this product has more than 3 thousand SKUs.

"Merchant culinary around 30%-40% cost The biggest one is the purchase of raw materials. If you want increase in gross margins or profit, definitely must reduce costs raw material. But if merchant that only exists single outlets, how do you want to negotiate the price to the distributor. That's what we want to help through Moka Fresh, we aggregate orders from our merchants to get the best prices from distributors.”

Furthermore, there is Moka Pay to manage various payment methods in one simple version of the cashier application. Entire app e-wallet famous already included in Moka Pay, added Akulaku and Kredivo.

MRT Jakarta joins as partner of Moka Connect

The latest announcement for the Moka product vertical is the joining of MRT as merchant Mocha Connect. This is marketplace contains various applications provided by third parties to support business merchant from all business scales, including the corporate level.

Examples of applications that have already joined there Journal and Accurate Online to help with bookkeeping, Eatsy to help consumers order food and drinks before coming to the restaurant. The order will be automatically entered into the Moka cashier system, so employees do not need to re-record for orders that come in through the Eatsy application.

Then, Storelogy is a helpful platform merchant create an online site, and GrabJobs is a recruiting platform to find workforce blue necklace which is risky because it has turnover tall one.

“In Moka Connect, we invite for developer to go in there and build the app on top of the Moka platform. The model is more or less the same as Google Play or the App Store which has many applications that can be downloaded. Therefore, usage Moka is getting stronger in the eyes of the merchants.”

Haryanto continued, “So far enterprise get to know Moka for merchant small, but now it's not so. Enterprise who already have an ERP system (enterprise resource planning) themselves, can use Moka Connect to integrate their POS with Moka.”

The latest news is that MRT Jakarta announced a collaboration with Moka for this product as a partner. Moka Connect will connect to POS machines for SME merchants selling at MRT stations, even if the merchant uses a different brand of POS machine. “MRT can manage transactions from SMEs, especially in the MRT and merchants there is a system revenue sharing alone."

Still focused on growth

Product innovation and service expansion are indeed crucial things that must be done by POS players, because in the local arena, many players have tried to come up with similar solutions. Besides Moka, there are other startups such as Qasir, Cashlez POS, Pawoon, Nuta to the newest one YouTube.

Haryanto views that the online cashier application business is still in its early stages, aka immature (mature) because there are still many merchants, especially micro, who have not been well educated about the benefits to their business development. The percentage of business people who have been touched by the digital world is still far behind those who are still offline.

Quoting from the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM), in 2017 as many as 3,79 million micro, small and medium enterprises (MSMEs) have used online platforms to market their products. This number is around 8 percent of the total MSME actors in Indonesia, which is 59,2 million.

From the consumer side too, Moka noted that the percentage of transactions using cash still dominates around 60% of non-cash. “How to change the mindset merchant micro to get into online is the hardest question. This requires a collaborative effort with all stakeholder, not only Moka."

Because the market is still wide and has not yet reached the adult stage, Moka is still installing mindset to focus on increasing growth. Although, from a business model perspective, SaaS with a b2b target audience, naturally has a economic units what is clearer The roadmapto lead to profitability.

Another advantage of SaaS is that it has gross margins higher, so that without providing subsidies, they still get income. Even if yes, gross margins what you get is still great. The main income from SaaS is generally a subscription either monthly or yearly, depending on the individual strategy.

"The question is whether we want profit now or later, if we-" mindsetit's still growth. Revenue and the profit that we caninvest for more growth. But we believe profitability it's important because it has to end there."

On the same occasion, Haryanto refused to comment on the rumors regarding the Moka akuisisi acquisition by Gojek. He said, the statement he made to the public some time ago regarding this response was still the same. "We do not comment on market speculation," he said at the time, quoting from Krasia.

He said this year the company is targeting 100 thousand merchant join Moka, from now on there are more than 30 thousand merchant Two-thirds of those who joined were in the culinary business, while the rest came from retail and service businesses.

With diversified business verticals, the company is confident in attracting new merchants. Although, the POS business is still a backbone from Moka because it becomes a connecting bridge to other Moka verticals.

Since operating in 2014, Moka now has more than 800 employees and is entirely local talent.