Pawi Hi I’m Pawi and you’re listening to Rappler Podcasts. You’re listening to Hustle’s Inside the Industry, where we talk to professionals and find out how they got here, why they’re doing what they do and what it takes to do it. This is Pawi from the Rappler’s Hustle team and joining us today is Roland Ross, founder and CEO of Filipino streaming app, Kumu! Welcome Roland!
Roland Hey! What’s going on?
Pawi For everyone out there keeping score, we’ve spent the past episodes predicting the possible futures of industries ranging from food and fashion to fitness and filmmaking but as businesses open up and ease into social distancing, we want to bring the spotlight back to the individual and their personal stories on innovation and enterprise. On that note, Roland, please tell us what Kumu is and how you got it started.
Roland I’m actually Filipino-American, born and raised in Los Angeles. My parents were born and raised in the Philippines and I’ve always been super curious so when I had an opportunity to study abroad, I went to University of the Philippines Los Banos. It was beautiful. With all the things happening back home, I felt more at home in the Philippines. After I graduated, I knew I would come back. I helped a start-up in Silicon Valley when I had the resources to go back.
I engaged a lot in humanitarian work and that’s where I met my co-founder. He was doing internship works with high performing Filipino students from Harvard, Brown, Georgetown, University of London, UofT, etc. When I helped him with his non-profit work, the Philippine ambassador suggested that I should start a technology company in the Philippines. His argument was that the technology jobs and the overall business I could create could have a more positive impact.
When I talked to my cofounder about it, we knew we couldn’t do it on our own. What we did is we did our version of Avengers (laughs). We looked for our Hulks, Thors and Black Widows; we went to New York, Silicon Valley and San Diego and when we had our five Avengers, we all moved to the Philippines for a better life.
When we got here, we started getting a lot of advice. We realized that we could build a significant business prioritizing the voices of a country. We looked at what WeChat did in China, KaKao in Korea and Line in Japan but those are social messaging apps back in 2010. But if you look at what Nadiem did with Gojek, it was more of an approach that kind of combined Grab, FoodPanda and Gcash into one app. We tried to launch an app in 2018 but the problem was no one cared (laughs). Who gives a crap about a Filipino Viber? T he younger people are already using Telegram, etc. When you looked at what Burbn did, they noticed that not that many people were using the messaging function but rather focused on the photo sharing option. They pivoted and became Instagram.
Similarly, Slack started as a video gaming platform and pivoted to become a messaging platform for teens. The same thing happened to us; we noticed that not many people were using the messaging function but a lot were using the live-streaming function and that’s when we pivoted in August 2018. Since we rebranded, we got to 4 million users and we became the number 1 highest grossing app in the Philippines. But since we captured the market of teens and millennials, we also became the number 10 highest grossing social app in Canada, number 10 in Kuwait and top 25 in Australia, New Zealand and Saudi Arabia.
The key takeaway is becoming this concept of an authentic community, where Gen-Zs and millennials are tired of pretending that their lives are perfect, having the anxiety of comparing yourself to an ideal perfection that happens in Instagram or hiding behind a keyboard that displays toxic behaviour like in Twitter and Facebook. Because Kumu is 100% live, you have an opportunity to be real with no edits. On the other side, your content isn’t recognized with views and likes. People are recognizing your content by giving you gifts that convert to peso in real time. We accidentally built the largest busking community in the world.
Our first believer was Lisa Gokongwei, the founder of Summit Media. Shortly after that with help of her siblings, ABS-CBN and the Ayala family with Globe invested became investors. In Singapore, Openspace Ventures, who is known as an investor for Gojek, joined as well. They hoped that we could be the champion of the Philippines similar to Gojek in Indonesia.
Pawi It seems like the only way to thrive in the tech industry is this quality of fluidity. It’s not much about the platform or the specific innovation as it is listening to your market and seeing what functions they value.
Roland Absolutely. You can have an initial idea but you leave enough room for the community to define the product. Once it's defined, you start reiterating based on their feedback. Why would I launch an app in a country with bad internet? I looked at the data and it looked like from a timing perspective, it made a lot of sense.
Pawi We’re starting to see more Filipinos embrace the livestreaming community at large. Let’s zero in a bit more on Kumu’s platform specifically. Let’s give our listeners an audio tour on how Kumu works.
Roland When you download the app, you’ll see an entire wall of livestreamers. The “aha” moment is when you find content that is engaging and relevant enough; you get the option to give them a “gift”. We give everyone a sample of this gift, like a currency. The halo-halo is 50 centavos, the 2-piece chicken is one peso and the Malacanang is around PHP 2000. For example, Ivana Alawi would go live and you give her a halo-halo. She’ll see it, she’ll go “thank you (insert name here) for the halo-halo” and boom, that’s the authentic connection. What’s so beautiful about that is it’s not exactly a viral product. We’re more like a social n etwork while TikTok is more social media.
Because it’s authentic, you’re not necessarily inviting your family or your friends but rather you’re downloading Kumu to find other people who get you. It’s more niche; we have a huge LGBT+ community, cosplayers, rappers, and DJs. One of my oldest friends, Angelo Medez, drove those kinds of subcultures in Manila. With folks like him, Victoria Herrera and Michiko Soriano, we really built a team that can empathize and understand the spirit of the Gen-Z and Millennial generation.
Another thing that is more cultural rather than technological value is Kumu’s three core values: safety, positivity and acceptance. It creates a safe place. From a technological perspective, we take a small percentage of all the transactions and that’s how we earn. We don’t earn through AI-driven advertising and because of that, we don’t give data to advertisers. That takes the whole privacy issue out. We only have small ad revenue.
Pawi Let’s talk more about the behind the scenes of the company. How big is Kumu and how many people work there?
Roland Right now, we have around 65 people. We had multiple offices. I was sharing an office with Summit Media and we had a studio close to ABS-CBN but because of social distancing, we decided to just keep the studio open. Everyone now is working from home. Our team is broken up into product technology, programming and community. One of my co-workers, James, makes sure that we’re like Disneyland; they have one of the strictest security forces on earth. They religiously protect this positive atmosphere and that’s why we’re unapologetic with creating this community. With social networking, we have people who used to work from GMA and ABS-CBN. Because of the digital transformation in the region, it forces these family businesses to be more open-minded when it comes to investments. It’s family and we’re very grateful.
Pawi How many users are we talking about now? How many people are on Kumu?
Roland Since COVID, we noticed that we did shoot past 4 million users. They’re spread out around 50 countries; 25% Metro Manila, 65% in the province (CDO, Cebu, Davao, Ilo-ilo, Bacolod, Naga and Laoag) and internationally, we have strong presence in the MENA region (Riyadh, Jeddah, Oman, Qatar). There’s also Hong Kong, Singapore, Malaysia, Japan, US, Canada, Italy and Norway.
Pawi That seems inevitable going back to the DNA of all this. You are yourselves diasporic Filipino like myself. When you come back here and work with the industry here, you bring this global perspective. That will eventually affect the way you operate.
Roland It’s basically globalization. LA had an impact on the world because it was the headquarters of film creativity. Silicon Valley was able to have an impact because of the technology companies there. When I look at the Philippines, I can see how they make an impact on healthcare workers globally. And because of the workforce educated in English, we also became the customer service kind of arm for globalization. What would happen if the social media capital of the world created its own app? What would it like? That’s why we have some of the largest international investors in the world. They’re completely shocked by the type of engagement we’ve been able to drive. It’s everything to do with the Philippines being at the forefront of social media. It’s about authentic community.
The biggest argument we get is that livestreaming isn’t new and since we’re in the Philippines, we’re told we should focus on sexy girls. I’m not going to do that. What we recognized through data is that just as enticing women live streaming for money is, there’s more on food, more on singing. The number one hashtag right now is t ambay; it’s just people hanging out.
Pawi You hit the nail on the head right there. The entrepreneur’s problem that they’re trying to solve is the irony that the Filipinos are the biggest voice on social media but we’ve always been the users.
Roland Exactly. Why chase the culture when you can grow culture? You’ve seen growth hacks where YouTubers purposely use hashtags to gain a Filipino audience. When I tell my founder story, I purposely say that we all left the United States and moved to the Philippines for a better life. It messes with people’s minds because so many people are used to the narrative of going back being counterintuitive. We’re really focused on changing that narrative. The Philippines is more intuitive than people think.
Pawi I’ve been saying that. We always discount ourselves so now is the time to finally unleash it.
Let’s talk about the future a bit more. You’re talking about reaching critical mass, you’re reaching all these users and getting all these investments from all over the world. What exactly is next for Kumu?
Roland Some advice that I got is to recognize where the wave is and ride that wave. The big wave that is hitting the Philippines with Kumu being the surfboard is the fact that you’re dealing with one of the fastest growing countries in the world right now. It’s a combination of a perfect storm. Number one, you have billions of dollars of investments in making the internet better. Number two, if you look at all the technology unicorns that happened in India, it all happened after Xiaomi, Huawei, VIVO and OPPO flooded the entire country with cheap high quality smartphones. They’re all launching 64GB phones for only a hundred dollars, which is crazy. Number three, you have a market of over 50 million internet users who are median age. When you see those three ingredients together, it’s beautiful.
For us, we have exponential growth in our e-commerce business. We’re dramatically growing our user base globally because we’re actually two quarters ahead of schedule. The Philippines is going to be a 25 billion dollar economy in the next two to three years and all Kumu needs is a small share of that market share to be a significant business. This ironically goes back to what my partners said earlier: create technology jobs in the Philippines and that’s how you’re going to make an impact. Right now, we have over 240 live streamers who earn full time income on Kumu and 6000 who earn part time. That’s what we're focused on.
Pawi Kudos to Kumu (laughs). What can aspiring tech entrepreneurs here in the Philippines look forward to the tech industry at large?
Roland I highly recommend you guys to read the G oogle Temasek Report on Southeast Asia because you’ll start seeing a lot of different opportunities in terms of improving the way of life in the Philippines. The biggest piece of advice I can give is to look at five key things. Number one, it’s not just about fundings. Two, what is your technological advantage? Three, how is your team? Four, what is your operating plan? Five, the most important thing, is timing. I recommend you guys go to AIM-Dado Incubator at Asian Institute of Management or Q Bo. Right now, we’re in the middle of digital growth. Go out there and try a bunch of stuff because this is an exciting time to start a company in the Philippines.
Yeah, there’s COVID but here’s a deal. Look at 2008, it’s in the middle of a crisis with the greatest opportunities. If you can find a particular business opportunity in the middle of this environment, you’re going to shine and look completely different.
Pawi On that note, to wrap things up, we’re continuing to our Play of the Week segment. We talked a lot about work and now, let’s talk about play. Any fun activities or recommendations to our listeners to unwind from the busyness of business?
Roland To unwind, you have to manage what’s in between your ears. I always start the day with a ten-minute morning meditation. It’s super simple. I start with gratitude, I put myself on this higher presence and think about the things I’m going to accomplish today. It helps retrigger and rewire my brain so I don’t have to unwind so much. I could be happy with accomplishing those three simple things.
Pawi We see some of the best in the world exercise such practices. My play of the week is something more specific and it’s a shameless plug. I’m proud to say that I’m celebrating my fifth year as a published children’s author this weekend. J amie’s Best Friend is now on A mazon Kindle. It’s written by me and illustrated by Winnie Wong. It’s around PHP 500; support your local storytellers! If you want to keep up with Jamie’s Best Friend, I’m on Instagram.
How about you Roland? How can people keep up with you and Kumu?
Roland I’m so lame I’m only on LinkedIn (laughs). You can just download Kumu on the A pple Store and the Google Playstore.
Pawi Thank you for joining us today, Roland. And thank you for listening! If you haven’t already please stay tuned to Hustle’s Inside the Industry on Spotify, Soundcloud, Apple, Google - you name it, don’t forget to hit that subscribe button.
Before you go, if you or anyone you know is a professional in a bold and exciting industry, we’d love to hear all about it. Email us at h ustle@rappler.com for your chance to be the next guest here at Inside the Industry.
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