ShopBack Receives 1,18 Trillion Rupiah Funding; Great Business in Indonesia

Startup aggregator cashback ShopBack announced the acquisition of a series F funding round of $80 million or approximately 1,18 trillion Rupiah. The funding, led by Asia Partners, will be used to support the development of a platform to provide the best online shopping experience in Asia Pacific.

Citing reports Bloomberg, This funding round is also supported by investors Existing January Capital. With this injection, ShopBack has raised a total of $230 million in funding.

"This is the right moment to support the winners, consolidate their positions and earn results," said Asia Partners Managing Partner Nick Nash.

ShopBack was founded in 2014 by Henry Chan and Joel Leong. Currently ShopBack has 35 million users and operates in ten countries, including Singapore, Indonesia, South Korea, and Australia. Last year, ShopBack expanded its service shovel by annexing the "Buy Now, Pay Later" (BNPL) platform. hello from Singapore.

In Indonesia alone, according to SimilarWeb data, the ShopBack site is ranked 6th among platforms E-commerce others with an average monthly visit of almost 600 thousand, the highest for the service category cashback. Indicates a sizeable user base to this service. While on Google Play, for the Shopping category, ShopBack ranks 19th -- below e-commerce applications and the highest for similar types of applications.

Meanwhile, on page LinkedInAt the same time, ShopBack Co-founder and CEO Henry Chan said he wanted to continue to provide a shopping experience while saving smartly in the current economic situation.

"Every day we send over a million shopping trips to 10.000 partners merchant where they can find deals, price comparisons and reward of the order. We remain a trusted partner to provide cost-effective marketing solutions for merchants," he said.

Previously, ShopBack received $45 million (Rp643,5 billion) in funding led by EV Growth and Rakuten and the participation of EDBI and other investors.

According to the "2020 Global Cashback Report" report, the market size for this service globally is projected to have reached $108 billion, including driven by adoption E-commerce significant impact of the pandemic. There are at least 450 participating global players providing these services.

Happen E-commerce

Growth potential for the platform reward from shopping transactions online is still very large in Indonesia. Sector E-commerce is still the biggest contributor in Indonesia. 

Menurut NielsenIQ laporan report, the number of consumers who shopped at reached 32 million in 2021, up 88% from 2020. Meanwhile, the e-Conomy SEA 2021 report noted the sector E-commerce grew 52% year on year. GMV E-commerce Indonesia is estimated to reach $53 billion, up from $35 billion in 2020.

This growth was also boosted by the addition of 21 million new digital consumers since the start of the pandemic, of which 72% were not from big cities.

In Indonesia, apps reward quite interested by online shopper. Apart from ShopBack, some apps that offer similar services include Snapcart who has been present since 2015 and Cashback which has only been operating since 2018.

Cashback target market socialeconomy A and B which have spending power high and average have a credit card. Meanwhile, Snapcart allows shoppers to get cashback from photos/videos of shopping receipts and allows brands to interact with consumers through surveys.