1. Startups

KitaBeli Receives 299 Billion Rupiah Funding, Ready to Expand New Businesses and Categories

Funding led by Glade Brook Capital Partners with participation from AC Ventures, Go-Ventures and Innoven Capital

Startups social commerce specifically for FMCG products KitaBeli announced that it has completed a $20 million (worth 299,5 billion Rupiah) funding round led by Glade Brook Capital Partners, an equity investment firm from the United States. Previous KitaBeli investors, namely AC Ventures, Go-Ventures also joined, along with a new investor, Innoven Capital.

WeBuy will leverage the fresh funds to continue expansion into second and third tier cities across the archipelago, while launching new product categories such as beauty, personal care, mother & baby products, and frozen foods.

KitaBuli is a platform social commerce which offers FMCG products and allows users and partners to get discounts and earn money by leveraging their social networks. This app allows consumers to enjoy discounted prices through a social and gamified shopping experience.

Different from the app E-commerce mostly, KitaBuli runs a business model direct-to-consumer which offers buyers the basic necessities of everyday life. KitaBuy combines approach 'group buying' a la PinDuoDuo and combines it with a local community approach.

“By being so consumer-focused, we have been able to achieve product-market fit and scale very quickly in a historically untapped market,” said KitaBeli Co-founder and CEO Prateek Chaturvedi in an official statement, Monday (18/7).

He continued, by leveraging social networks offline from Local Community Leaders (Partners), companies can reach thousands of new users who buy online online for the first time in their life. Such a move can build customer loyalty and allow it to deliver better long-term margins than other players.

“Glade Brook is one of the most experienced growth stage investors we have met, and their experience in E-commerce and social commerce in all developing countries globally is unmatched. The experience and insight that Linda Guo, Paul Hudson and their entire team have brought to this space convinced us that they are the right partners on our journey.”

Glade Brook Capital Partners partner Linda Guo said, “We are excited to partner with KitaBeli to bring access E-commerce better and more affordable to second-tier communities in Indonesia. We believe in the wave of growth E-commerce The next one in Indonesia will be driven by consumer demand outside big cities like Jakarta.”

AC Ventures Founder & Managing Partner Adrian Li added, the company's commitment to KitaBeli further strengthens the thesis which states that the next e-commerce users in Indonesia will come from second and third tier cities in Indonesia. KitaBeli has focused on creating suitable solutions for rural consumers. It uses social hooks and gamification to drive engagement and uses a community delivery model hyperlocal.

“KitaBeli's product-led approach and operational excellence have demonstrated strong customer engagement, strong top-line growth and promising acceptance rate expansion. We are excited about KitaBeli's future and excited to be a part of the journey from the start," said Adrian.

Potential in tier two and three cities

Chaturvedi said that historically, this expansion into rural areas has not received much attention by other players. Whereas in the second and third tier cities in Indonesia now represent a market of more than $100 billion, with more than 200 million consumers contributing more than 50% of the country's GDP. However, this opportunity does not escape the haunting issue.

Among them, consumers often experience long delivery times for online shopping orders. The solution that KitaBeli provides is to open warehouses in every city where it operates, allowing it to make same-day and next-day deliveries straight ahead pintu customer.

Next, consumers are often faced with higher prices due to broken supply chains. This often results in end customers paying 10%-50% more than consumers living in Jakarta. By sourcing products directly from brands and principals, KitaBeli provides huge savings to consumers.

“Finally, consumers in second- and third-tier cities often have trust issues with E-commerce when they don't know the person promoting or selling the product. To break down barriers of trust, KitaBeli uses a different strategy from its competitors, focusing on the network offline consumers and encourage them to invite friends and family to use the platform.”

More Coverage:

Over the past good months, KitaBeli claims to have grown more than 10 times and this achievement makes the company a leading player in this vertical in Indonesia.

--

Download the report on Social Commerce recently published DailySocial.id HERE. Discusses trends and business models of Social Commerce in Indonesia.

Application Information Will Show Up Here
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again

Sign up for our
newsletter

Subscribe Newsletter
Are you sure to continue this transaction?
Yes
No
processing your transactions....
Transaction Failed
try Again