Jet Commerce Receives 900 Billion Rupiah Funds, Strengthens "Omnichannel Commerce" Solution

Company e-commerce enablers "Jet Commerce" announced the completion of a series B funding round of over $60 million (approximately 900 billion Rupiah). This funding was led by a number of VCs, namely Jinqiu Capital, Hidden Hill Capital, and Zhejiang SilkRoad Fund. Previous investors, such as ATM Capital, Hui Capital, and others participated in the round.

Founder & CEO Jet Commerce Group Oliver Yang said the additional funds will be used to strengthen the infrastructure of the Jet Commerce ecosystem, recruit more local talent professionals, conduct research and technology development, and strengthen the company's ability to incubate brands.

“We believe the funding and support from these investors can further enhance Jet Commerce's capabilities in assisting partners brand we seize the opportunity of the rapidly growing market E-commerce in Southeast Asia," he said in an official statement, Tuesday (30/8).

Chairman & Managing Partner of Hidden Hill Capital Dongfang Hao also conveyed his optimism regarding the potential of the sector E-commerce in emerging markets, such as Southeast Asia and Latin America.

“We can clearly see that the entire market is rapidly shifting towards online and focus on Branding. For that, we are optimistic about service E-commerce comprehensive services such as that offered by Jet Commerce will be even more valuable, especially to brand who want to win market share in emerging markets,” said Hao.

Jet Commerce business development

The company itself was established in Indonesia since 2017, and has expanded to five other Asian countries, such as Thailand, Vietnam, the Philippines, China, and Malaysia in the last five years. The company employs more than 1.000 people with 90% of them being local talent in each country.

The expansion will continue to the next two countries, namely Brazil and Singapore. In order to strengthen regional business, in 2020 the company formed a group of companies and established its head office in Hangzhou, China. Thanks to the presence of Jet Commerce Group, the company has now successfully partnered regionally with several world-renowned brands such as OPPO, Unicharm, DJI, Nivea, Shiseido, and FOREO.

“China is the center E-commerce a world with technology and shopping patterns online a much more mature society. Based in China, we are able to expand our network with industry leaders, and learn from their proven successful business models, to drive innovation Jet Commerce next,” Oliver added.

Apart from expanding its reach to other countries, the company is also strengthening its services. One of them provides a system omnichannel, thanks to a partnership with UPFOS, earlier this year. Thus, Jet Commerce is able to improve the efficiency of managing business operations E-commerce submachine gun brand-his. Not only simplifies complexity in operations e-commerce, the company is now able to handle more than 100 thousand orders per day thanks to the presence of the system.

The next innovation is to provide services live commerce through the newest business unit "Lumbalumba" while inaugurating the center live streaming in Pluit, Jakarta. Center live streaming it contains 14 fully equipped studios, such as OBS (Open Broadcaster Software) tools to improve video quality, lightning set complete, and various other equipment.

Dolphins provide services live commerce thoroughly for partners brand Jet Commerce Indonesia, starting from live streaming, talent management, including providing content creators or an influencer well-known, TikTok Shop Management, to content marketing.

live commerce itself is a trading activity that broadcasts its products digitally via video and connects directly with consumers online, which is considered to have grown rapidly in recent years. In the latest Statista report, there was an increase in the average purchase through live streaming by 76% worldwide, from the start of the pandemic to the present.

Competition omnichannel commerce

For the record, the online shopping market share in Indonesia, according to the e-Conomy SEA 2021 report compiled by Google, Temasek, and Bain & Company, shows strong growth in all sectors of the digital economy in Indonesia. The internet economy in Indonesia is predicted to reach $70 billion in Gross Merchandise Value (GMV) by 2021 and is predicted to double to $146 billion by 2025.

Meanwhile, sector E-commerce remains a key driver of digital economic growth. The reason, because more and more traders want to join the platform e-commerce. The figure is predicted to reach $53 billion in 2021, up 52% ​​from the previous year, then in 2025 it is predicted to rise to $104 billion, growing 18%.

Therefore, this wetland is an opportunity for the players to continue working on it. Jet Commerce's closest competitors, namely SIRCLO also actively participate in innovating so that the shopping process online from brand to consumers more seamless pattern. The company has three main focuses which are divided into solution pillars, namely Enterprise, Entrepreneur (MSME), and new retail. Each solution adapts to business needs.

It is claimed that the company has registered more than 150 thousand brands and more than 500 thousand stalls that have been served cumulatively; more than 25 million end-consumers been served; and more than 80 distribution points spread throughout Indonesia.

One of the derivatives of innovation from vertical E-commerce which is starting to get crowded is social commerce. This service is relevant to Indonesian culture because it empowers social and online technology communities to increase the market with less effort.

The business model simply requires an agent to share product referral links and to earn impressions from those closest to them through social media or face-to-face meetings. This way of promotion will be more native and personal.

Quoting from the Research and Markets (2021) report, business market share social commerce estimated to reach $8,6 billion in 2022, growing 55% annually. Player social commerce On average, they enter second- and third-tier cities that have strong communities and low digital literacy.