RateS Closes Investment of 85,8 Billion Rupiah, Consisting of Equity and Debt Funding

Platform developer startups social commerceRateS has received fresh funding with a total value of $6 million or equivalent to 85,8 billion Rupiah. This follow-up round is divided into two forms, namely $4,5 million for equity funding and $1,5 million for funding debt.

KVision from Kasikon Bank joins as a new investor. Meanwhile, previous lenders Vertex Ventures, Insignia Ventures Partners, and Genesis Ventures were also involved.

To DailySocial.id,Co-Founder & CSO RateS Albert Ho said, this fresh fund will be followed by a series B fundraising which is targeted to be closed this year. With the joining of Kasikorn Bank, RateS is also interested in exploring new financing products for partners reseller and their end users.

"We will expand our presence in other tier-2 and 3 cities, strengthen our product development team, and invest more into business private-label us, namely Hozu and Kidzu," said Albert.

Previously RateS announced series A pendanaan funding them in February 2021 for an undisclosed amount. Vertex Ventures and Genesis Ventures are leading the funding. They booked initial funding from Alpha JWC Ventures and Insignia Ventures Partners since 2018.

"2021 was a great year of growth for us, with a 4x increase since 2020. Today, we also have a team offline which is present in 25 cities, while making deliveries to more than 300 cities. This extended [funding] round is a testament to investor confidence in our growth," added Albert.

Growth social commerce in Indonesia

Past RateS aplikasi app, anyone can sell (become) reseller) without having to buy stock items first. Users can create a stall online contains various products according to the RateS catalog, then promotes them through channels online and offline which is owned. As a partner, reseller will get a special purchase price and selling price to consumers so that they get a profit.

According to projections from McKinsey, the value of GMV that the industry will generate E-commerce in Indonesia will reach $65 billion by 2022. Social commerce alone can contribute up to $25 billion to the achievement.

In an ecosystem, player social commerce Locals also keep coming with unique approaches. But one thing that is almost the same, all platforms do, is targeting users in small cities. While users in big cities are used to E-commerce or online marketplace, in the suburbs there is still a lot of potential that has not been accommodated from these two services.

One of the things to do social commerce is to bridge the community's need for shopping online but do not yet have the ability or access [eg to a payment system] to do so themselves. Role reseller to help with the process.

A number of players who apply the business model social commerce are Evermos, Raena, Merchandise, Kitabeli, and others.