Scaling Through

Technology
Democratization
STARTUP REPORT 2019

© March 2020
Contents
Contents 01
Overview 02
Chapter 1: Indonesia Market Overview 05
Population and GDP 06
Internet and Mobile Users 07
Indonesia and SEA Market Size 06
Digital Habit 09
Popular Mobile Apps and Services 10
Chapter 2: Indonesia Startup in 2019 12
Welcoming Decacorn 13
Indonesia's Centaur 14
Hot Verticals in 2019 15
Rising Star and What's Next 20
Investment Landscape 22
Chapter 3. Exit Strategy 29
Venture Capital 30
Acquisition 31
IPO Plans 31
Chapter 4. Issues and Opportunity 32
Current Issue 33
What’s Next in 2020? 33
Closing Remarks 36

01
Overview
Startup Report is DSResearch's annual report to
provide updates on the startup technology
industry in Indonesia. This report is supported
by Mandiri API and Vidio.

IN THIS REPORT, WE FOCUS ON:

Indonesia's digital market share and
statistics in 2019
Industry dynamics and investment list in
2019
Prospective sectors for 2020

With five (and more) startup unicorns to come,

one startup with more than $10 billion
valuation, tech-nology democratization has
and will continue to empower more people
for banking (or financial) experience, new
retail experience, and other online on-demand
services.

The digital economy growth has been

attracting sizable foreign investments and
bringing opportu-nity to disrupt many
sectors. Indonesia has emerged to become
one of the largest digital economies in Asia and
in progress to fulfill its potential.

02
Bank Mandiri

Bank Mandiri is a leading Indonesian bank which provides integrated financial services in the
Corporate, Commercial, Micro & SME, Consumer Banking, Treasury and International Banking.
As of the end of December 2019, Bank Mandiri has vast networks of more than 4.000 branches
and micro outlets, 18.000 ATMs connected to the ATM Link, ATM Bersama, ATM Prima dan
Visa/Plus networks; electronic data capture (EDC) terminals throughout Indonesia; also Mandiri
Online, a modern and innovative e-banking solution. To build the foundation of a digital bank,
Bank Mandiri has a digitized back-end system, straight-through-processing of loan process
system which leverages our big data platform, and an open API services which are ready to be
implemented in Fintech and other digital partners. Mandiri also has modernized its channels to
develop better customer experience. In the future, Bank Mandiri aim to integrate and build digital
ecosystem with the help of its 11 subsidiaries in various area of services, i.e shariah banking,
MSME credit, and venture capital.

Mandiri API

As one of the foremost financial institution in Indonesia, Mandiri aims to build digital business
ecosystem by opening access to its renowned financial services for third party’s platform
through Mandiri API. Mandiri API offers an integration of a wide range of financial capabilities
including interbank transfer, inhouse transfer, balance inquiry, and transaction inquiry. Many
more services are to be released in the near future including e-Money Top Up, Auto Debit, Online
Notification, and Virtual Account. Mandiri API’s combination of services will be a good fit for
most startup businesses, such as for digital wallet & payment system, peer to peer lending &
deposit, e-commerces, and many others.

Mandiri API aims to build mutually beneficial digital ecosystem through a friction-less integration
to ensure a sustainable growth for both the bank and its partners. Mandiri API provides faster
integration process, ease of adoption, and less implementation efforts which will all lead to
better cost efficiency in integrating financial services into any businesses.

Mandiri API, redefining financial services.

"We provide our Mandiri API services for business to directly connect
to our renowned financial capabilities. Combining our services within
the business process of our partner will remove the boundaries of
communication between us and our partners. We aim to nurture a
synergy between the currently booming digital startup companies
and Bank Mandiri in order to build a mutually benefitting digital
business ecosystem, which in turn will propel Indonesian economy.”

Rico Usthavia Frans, Director of Information Technology, Bank Mandiri

Vidio

Vidio is one of EMTEK Group's subsidiary which provides the most complete streaming
service in Indonesia. Directly connected with more than 21 TV Streaming, Vidio also
presents thousands of local and global content in its Video On Demand service, TV
network subscriptions, and exclusive content for TV series, box office movies, dramas,
documentaries and airing thousands of sports matches from various categories for all
genres and ages. Vidio made a commitment to provide the widest coverage and easiest
access for users to enjoy unlimited entertainment that is accessible through websites,
mobile phones or TV at home.

Founded in September 2014, Vidio has transformed to be more than just a video
platform. Vidio is Indonesia's leading streaming service with more than 40 million
monthly active users. Users can enjoy a variety of free content or purchase "Vidio
Premier" subscription and gain acess to international live sports, international TV channels
and local asian content. Vidio also started to invest much for original content such as
Heart, Get Married and Omen.
Indonesia
Market Overview

05
Chapter 1: Indonesia Market Overview
1. Population and GDP
According to data from the Central Statistics center of government and business, Jakarta is
Agency (BPS)1, the total population of Indonesia being the most densely populated province.
is around 265 million in 2018. This number is The population of productive age (15-64 years)
projected to increase to 270 million in 2019, reachers 67.69% of the total population.
according to an analysis from the National Deve-
lopment Planning Agency (Bappenas). As the

Figure 1. Indonesia's population data / BPS Annual Population Growth Rate

Population (Million) 265.0

2010-2018

238.5

1.33%

2010 2018

According to the Central Statistics Agency (BPS), Indonesia’s GDP in Q3 2019 has reached
Rp4,067.8 trillion. Indonesia’s economy growth is 5.02% (year-on-year) from Q3 2018 to Q3 2019.

1
Badan Pusat Statistik (BPS)

06
2. Internet and Mobile Users
A recent study from the Indonesian Internet
Providers Association (APJII)2 states the internet
users in Indonesia reach 171 million users as of
2018. It means that 64.8% of the total popula-
tion in the country has access to online services.
Of the total users, 55% of them are in Java. While
the other 21% is in Sumatra.
The improvement is consistent, supported by
government initiatives through the "Palapa Ring"
project. Recently, the government has continued
to increase broadband distribution in eastern
Indonesia. Priority infrastructure programs are
also being promoted there to improve equality.

Figure 2. Indonesia’s internet user growth / APJII

200 171

143
150 133
110
88
100

50

2014 2015 2016 2017 2018 (in million)

About the connection quality, data from the Speedtest Global Index3 as of November 2019 revealed that the
average speed of internet connectivity in Indonesia is still below the average of global connectivity. That puts
Indonesia ranked 117 for mobile broadband (14.46 Mbps) and 114 for fixed broadband (20.35 Mbps).

Figure 3. Indonesia’s internet speed in average / Speedtest

Indonesia November 2019 Global Speeds November 2019

Mobile Download Mobile

Rank 14.46 Mbps

Download Upload
117 +6 Upload 30.93 Mbps 11.88 Mbps
10.93 Mbps

Fixed Broadband Fixed Broadband

Download
Rank Download Upload
20.35 Mbps
114 -2
Upload
71.55 Mbps 38.91 Mbps
12.42 Mbps

GSMA Intelligence4 revealed in 2018 there were
323.5 million active mobile connectivity. 97%
used prepaid service and 82% have already
connected to mobile internet. It projects in 2025
the number will increase to 488 million.
Indonesia is a Fast Growth market in Southeast
Asia with 5 licensed network operators. As of H1
2018, Telkomsel held a 46% share of total
connections, followed by Indosat Ooredoo (23%),
Tri (15%), XL Axiata (13%), SmartFren (2%).

2
APJII
3
Speedtest Global Index (November 2018)
4
gsmaintelligence.com 07
Figure 4. Indonesia’s internet speed in average / Speedtest

Connections Q4 2018 % prepaid Q4 2018

323.5M 97%
-26.23% -1.10%

% mobile b'band Q4 2018

82%
23,71%

This year 4G connectivity has been used by
around 45% of mobile broadband users. The rest
still rely on 3G and 2G. It is predicted that next
year 4G will begin to dominate constantly. Mean-
while, 5G will start to be adopted publicly
in 2022.
According to We Are Social & Hootsuite’s
report on January 2020, mobile connections in
Indonesia is up to 124% of the total population.
Broadband connections (3G, 4G, and 5G
mobile connections) has reach 112% of the
total population.

3. Internet and Mobile Users

With the largest population, broadband expan-
sion, and a growing economy, Indonesia has a
special appeal in the regional digital market.
Based on the e-Conomy SEA 20195, internet
economy in this region hit $100 billion for the
first time. Indonesia and Vietnam's markets are
growing in excess of 40% a year.
Indonesia’s digital economy is predicted to
reach $130 billion by 2025, it’s already at $40
billion this year – 49% growth in average per
year. E-commerce and ride-hailing become the
main industry; as the digital payment dominat-
ing all the app-based services. The related
growth is supported by endless investment. It
includes funding for Indonesian unicorns, the
value is at $4 billion in 2018.

Figure 5. SEA’s internet economy value / Google, Temasek, Bain & Company

2015
28% 2018 CAGR
2025
100B

22% 25%
15%
16% 25%
49%
43B
27% 33B
27B
19% 30% 16% 35%
22B
21B 21B

12B
8B 8B 7B 10B 9B
5B 2B 5B 6B 3B

Indonesia Malaysia Philippines Singapore Thailand Vietnam

5
Think with Google
08
e-Conomy SEA 2019 also highlights e-com-
merce, online travel, online media, and ride
hailing. The four main sectors are playing great
roles for business transformation in Southeast
Asia – as the locomotive and gate to the digital
economy. In fact, the e-commerce and ride
hailing sectors in Indonesia has opened new
opportunities, particularly to encourage SMEs to
level-up and create more job offers.
Figure 6. Indonesia digital economy / Google, Temasek, Bain & Company
48%
82B
17%
88%
25B
19%
21B
10B
5B
1.7B
E-Commerce Online Travel
4. Digital Habit
Based on We Are Social & Hootsuite’s report6,
the amount of mobile phone connections (338.2
million) is higher than internet users (175.4
million). Active social media users in Indonesia
have reached 160 million. It also shows 96%
internet users own mobile phone (anytype),
followed by smartphone (94%) and laptop or
desktop computer (66%). Usually internet users
spend 7 hour 59 minutes (with different kinds of
media and devices).
Google.com still leads most visited websites
according to SimilarWeb (based on total global
website traffic). Then followed by YouTube.com
and Facebook.com. The top 3 most common
queries that people entered into Google
searched throughout 2019 are Facebook,
Google, and YouTube.
6
We Are Social & Hootsuite Report 2020
The e-commerce sector still gets the largest
market share with Gross Market Value (GMV)
reaching $21 billion. While online travel which
has the highest GMV in 2018 has shifted to the
second position with a capitalization of $10 billion
— it includes online travel agencies and budget
hotels that continue to expand in the regional
market. Followed by ride-hailing with GMV for $6
billion and online media for $4 billion.
2015 2018 2025 CAGR
34%
31%
57% 18B
56%
9B 6B
4B 0.9B
0.6B
Online Media Ride Hailing
Besides browsing and playing on social media, other
online activities that are usually did by Indonesian
people is streaming TV content via the internet (59%).
Playing games using game console alson trending now,
which mostly they spent time playing games for 1 hour
and 23 minutes (it is above from the average spent
time globally).
Along with the growth of internet usage, there are 59%
Indonesian people (aged 16 until 64) worried about how
companies use their personal data. And The most used
internet technology in Indonesia is Ad-Blocking tools
which accounts for 65% (while worldwide only
accounts for 49%). Voice search and voice commands
from any device also used quite often by Indonesian
people (54%). At present, the use of the internet has
also been applied at home called smart home device, the
ownership of smart home device in Indonesia is still low,
around 8%.
09
 The number of active social media users com-
pared to the total population (regardless of age)
in Indonesia is 59%, but if compared to the
population aged 13+ the active social media
users is 76%. Compared to the largest absolute
growth of social media users, Indonesia got third
place (after India & China) with an amount +12
million users (up to 8.1%). The average daily
time that Indonesia internet users aged 16 to 64
spend using social media on any device is 3
hours and 26 minutes. Indonesian people mostly
had around 10 social media accounts per person.
While in global, percentage of internet users
aged 16 to 64 who use social media for work
purposes only 43%, Indonesia gets the highest
percentage which accounts 65%. The top messenger
apps in Indonesia are still led by WhatsApp.
Some of the social media platforms that are popular
among Indonesian people are Facebook, Instagram,
LinkedIn, Twitter and YouTube. Based on reach rank-
ing, Facebook got the third rank (reached
130.000.000, after India and U.S.A), Instagram got
the fourth place (reached 63.000.000), LinkedIn and
Twitter got the eighth place which each reached
15.000.000 and 10.645.000. The first top search
queries on YouTube throughout 2019 is about song.

4. Popular Mobile Apps and Games

According to data from App Annie (on December 2019), the top 3 mobile apps by Downloads are Face-
book, Whatsapp Messenger, and Worms Zone.io. While by revenue, top 3 mobile apps are Free Fire,
Mobile Legends: Bang Bang, and Hago

Figure 7. Top Android and iOS App in Indonesia per Dec 2019 / App Annie

By Downloads Company By Revenue Company

1. Facebook Facebook Free fire Sea

2. Whatsapp Messenger Facebook Mobile Legends: Bang bang Moonton | VNG

3. Worms Zone.io Azur Interactive Games Hago YY Inc

4. Tiktok ByteDance Rise of Kingdoms Lilith | Original Entertaintment

5. Shopee Sea Clash of Clans Supercell

6. Facebook Messenger Facebook PUBG Mobile Tencen | Krafton | Rekoo | VNG

7. SHAREit SHAREit Lords Mobile Fantasy Plus | IGG

8. Instagram Facebook Line Webtoon Naver

9. Mobile Legend:Bang bang Moonton | VNG Game of Sultans Mechanist

10. UC Browser Alibaba Group Black Desert Pearl Abyss

10
 And for the top 3 mobile games by Downloads are Worms Zone.io, Mobile Legends: Bnag Bang,
and Free Fire. And also Free Fire, Mobile Legends: Bang Bang, and Rise of Kingdoms are the top 3
mobile games by revenue (App annie’s report on December 2019).

Figure 8. Top Android and iOS Game in Indonesia per Dec 2019 / App Annie

By Downloads Company By Revenue Company

1. Worms Zone.io Azur Interactive Games Free Fire Sea

2. Mobile Legends: Bang bang Moonton | VNG Mobile Legends:Bang bang Moonton | VNG

3. Free Fire SEA Rise of Kingdoms Lilith | Original Entertainment

4. Sand Balls SayGames Clash of Clans Supercell

5. Sky Roller Homa PUBG MOBILE Tencent | VNG | Rekoo | Krafton

6. Brain Out Eyewind Lords Mobile Fantasy Plus | IGG

7. Subway Surfers Sybo | iDreamSky | Kiloo Game of Sultan Mechanist

8. Ludo King Gametion Black Desert Pearl Abyss

9. Fun Race 3D Good Job Games ROBLOX Roblox

10. Turbo Stars SayGames Be The King Chuang Cool

11
Indonesia
Startup in 2019

12
 Chapter 2: Indonesia Startup in 2019
1. Welcoming Decacorn
a. Gojek as the first decacorn
In July 2019, three of Mitsubishi’s entities The round has started since the beginning of
announced their involvement on Gojek’s Series F last year (Q4 2018). It's estimated to be closed
Round. With this investment, Gojek is now in Q1 2020. JD.com, Tencent Holdings, Google,
valued at more than $10 billion. It is now consi- Astra Group, Visa, AIA Indonesia, and Cool
dered to be the first startup in Indonesia with Japan Fund also participate in this round.
decacorn status.

Figure 9. Gojek's Series F journey in 2019

October 2018 March 2019 July 2019 September 2019 October 2019

Google, JD.com, Astra Group Mitsubishi UFJ Financial Group AIA Indonesia Cool Japan Fund
Tencent Holdings Mitsubishi Corporation,
Mitsubishi Motors, Visa,

Investor

b. Ovo as the fifth unicorn, JD.id as the sixth

OVO succeeded in becoming the fifth unicorn in Indonesia. Although no founding round was announced
publicly, the company is now valued at more than $2.9 billion. Meanwhile JD.id claims to have above $1
billion valuation after the latest funding round.

Figure 10. List of Unicorn in Indonesia

~ $10 Billion ~ $2.9 Billion

~ $7 Billion ~ $2.5 Billion

~ $1 Billion
~ $4.5 Billion

Valuation (as of Q4 2019)

13
2. Indonesia’s Centaur
Centaur or aspiring unicorns are designations for startups that have reached valuations
of more than $100 million (1.4 trillion Rupiah) and under $1 billion (14 trillion Rupiah). One
of the valuation itself is measured based on funding obtained from investors.

Figure 11. Indonesia's centaur startup per December 2019

Later
> $500M+

Early
$100M - $500M

Although not listed in details, according to the Temasek report, Google and Bain & Company
currently have around 70 startup centaurs in Southeast Asia. As for Indonesia, based on
research conducted by DSResearch earlier this year, there are at least 27 startups, most of
which have been confirmed to have valuations above $100 million.

Figure 12. The centaur's business model and vertical

Business Model:
10
B2C
9
B2B
8
7
B2B2C

6
5
4
3
2
1
0

Agrotech Coworking E-commerce Edutech Fintech Healthtech Logistic Media New Retail SaaS

In terms of the business vertical, the scope is
quite varied, although fintech and e-commerce
dominate. The trend is still the same if you look
at the list of existing local unicorns, 3 out of 6
players are in the e-commerce field.
Meanwhile, when viewed from the business model alias
the revenue stream channel that is relied on, the distri-
bution is also quite balanced, as many as 13 startups
apply the B2C model, 10 startups in the B2B model, and
the rest (4 startups) target both through B2B2C.

14
3. Hot Verticals in 2019

a. Ride-Hailing
This year is the glory for Ride-Hailing Startup
such as Gojek and Grab, which both of them get
the “Decacorn” title. DailySocial reported the
valuation of Gojek is around $10 billion, while
Grab got a bigger valuation around $14 billion.
Based on Google Playstore also written Grab
apps download leads with 100,000,000+ than
Gojek (50,000,000+).
transaction from Go-Pay that have processed $6,3
billion and Go-Food have processed $2 billion.
The innovation from Gojek this year is about GoFood
(such as GoFood Exclusive, Cloud Kitchen, and Turbo).
Meanwhile from Grab has innovation in online taxi
Greenline to face the regulation of even odd car
license plates .

Both of them have each payment service Gojek “Based on We Are Social & Hootsuite’s
with Go-Pay and Grab with OVO. In the early of report, the percentage of internet users
2019, Gross Transaction Value (GTV) of Gojek is aged 16 to 64 who use ride-hailing
up to $9 billion which is dominated by the
apps each month is 49%.”

~ $10 Billion Valuation (2019) ~ $14 Billion

Apps Download
50.000.000+ (Android, Dec 2019) 100.000.000+

Primary Payment
Service

Transportation, Delivery, Food, Transportation, Delivery, Food,

Ticketing, Shop, Medical, Cleaning Services Phone Credit, PPOB, Cleaning
Service, PPOB, Game, Vehicle Service, Electronics Repair, Medical,
maintenance, Electronics repair, etc. Hotel Booking.

15
b. Fintech Highlight
The demand for fintech products had grown
rapidly and achieved mass adoption to people’s
lifestyle. This year, T-Cash has transformed into
LinkAja in collaboration with four state-owned
banks.
Our latest Fintech Report 20198 summarize the
highlight of digital wallet. More than 80% of
respondents are aware about digital wallet,
investment, and paylater as fintech products.
There are 82.7% of people who are aware of
digital wallets, 62.4% who are aware of invest-
ment, and 56.7% who are aware of paylater.
The innovation in 2019 from Gopay (as a digital
payment from Gojek) is collaboration with BAZNAS to
facilitate payment of zakat digitally through GoZakat.
Besides that, OVO’s innovation is vending machine
SmartCube. It was built using the analytic data
obtained by OVO from its consumer payment transac-
tions. It can be used not only for OVO users, but also
for brand, agency, FMCG companies, and also vending
machine operators.
“Based on We Are Social & Hootsuite’s
report, mobile banking or financial
services apps user accounts for 33%
(based on internet users aged 16 to 64).”

Founding Company EMTEK Group, Gojek Lippo Group Telkomsel, Bank Mandiri,
Alibaba Group Bank Negara Indonesia,
Bank Rakyat Indonesia

Apps Download
10,000,000+ 50,000,000+ 10,000,000+ 10,000,000+
(Android, Dec 2019) (Gojek)

Bukalapak, TIX.id, Gojek, Polres Grab, Tokopedia, Angkasa Pura II, KAI,
Service Integration BPJS Kesehatan, Bekasi & Gresik Polres Surabaya Pertamina, Agoda,
Mobile Legend, (SIM & SKCK) (SIM & SKCK) PasarPolis, Buka-
Ramayana, KFC, lapak, CGV Cinemas,
The Coffee Beans Telkomsel, Kimia
& Tea Leaf, etc. Farma, Panin Bank,
McDonald’s, PLN,
BPJS Kesehatan,
Alfamart, Garena,
etc.

8
DSResearch Fintech Report 2019
16
c. OTA Highlight
The leading travel and lifestyle booking platform
in 2019 still held by Traveloka. In Indonesia,
Traveloka is the only one of OTA (Online Travel
Agencies) with unicorn title. Its valuation has
reached around $4.5 billion. Traveloka has
currently launched its latest feature as the
sub-brand called “Xperience” in early 2019. The
complete experience to explore and book
various holiday activities and lifestyle. Starts
from tickets for shows, tour, playground, beauty,
cinema, karaoke, and sports.
In the meantime, Tiket.com launch new feature on
December 2019 named “Tiket Anti Galau” that provides
a guaranteed refund for cancelations of airplane ticket
up to 100% of the ticket price paid through the applica-
tion up to 4 hours before departure.

Acquired by Blibli
with undisclosed valuation
Valuation (2019) ~ $4.5 billion

Apps Download
10,000,000+ (Android, Dec 2019) 10,000,000+

Site Rank
114th (Similar Web, Nov 2019) 14th
“Travel and Tourism” Category

Flight, Hotel, Train, JR Pass, Bus &

Flight, Hotel, Train, Bus & Shuttle, Services Shuttle, Eats, Airport Transfer,
Car Rental, Exhibition, Payment Experience, Movies, Payment,
Insurance

17
 d. E-commerce Highlight
E-commerce industry in Indonesia in 2019 is verything online via any device in the past month is 88%
competitive. 3 local unicorns and 2 regional (higher than the percentage of worldwide), and espe-
unicorns are competing in the largest market in cially which used mobile device to online shopping has
Southeast Asia, accounted at 40% of total percentage at 80%. Fashion and beauty is the most
marketshare. spent category of product in 2019 which amounts to
$4.9 Billion. The most used payment methods to
According to We Are Social & Hootsuite’s report purchase in E-commerce are credit card (35%) and bank
on January 2020, the percentage of internet transfer (24%).
users aged 16 to 64 who say they bought some-

Figure 13. Top and most visited e-commerce platform in 20199

Top Rank E-commerce Top Rank E-commerce Monthly Web Visit

1. 1. 65.93 M

2. 2. 55.96 M

3. 3. 42.87 M

4. 4. 27.99 M

5. 5. 21.39 M

6. 6. 5.52 M

7. 7. 5.03 M

8. 8. 3.90 M

9. 9. 3.58 M

10. 10. 3.57 M

iPrice's Peta E-Commerce Indonesia

9.

18
 e. Digital Media Highlight
YouTube Go, a lite version of YouTube, becomes
the video streaming app with most growth in
2019 according to App Annie. Viu, Netflix, and
YouTube Kids are all in the top 5 of breakout
video streaming app in Indonesia.
In Google Play's popular entertainment app, Vidio, a
streaming platform under Emtek Group, is the only local
app listed in top 5. While Vidio has several Indonesia's
original contents, it distinct itself from competitor with
premium sport contents.

Figure 14. Most Popular Video Streaming Platform

Breakout Video Streaming Apps 2019 Most Popular Video Streaming Apps 2019
Rank (Source: App Annie) (Source: Google Play)

1.

2.

3.

4.

5.

According to We Are Social & Hootsuite Report 2020, the percentage of internet users (aged 16 to 64)
who listen to music streaming services is 84%. They usually spend 1 hour and 30 minutes listening to
music streaming services.

Based on JakPat survey in Q1 2019, YouTube dominates as the most popular music apps in Indonesia.
Joox and Spotify are getting more popular, while Soundcloud only less than 5%.

Figure 15. Most Popular Music Streaming Platform in Indonesia

64.5%

50.9%

46.6%

20.5%

4.6%

19
4. Rising Star and What’s Next

a. Education Technology
The edtech sector is currently evolving. Zenius also reported has received funding worth $20
Tech-based education platforms aim to enhance million (around 283 billion Rupiah) from Northstar
the quality of student learning, not limited to Group (probably through its venture capital).
classroom activities.
In B2B segment, there’s Harukaedu. In 2019, the com-
Ruangguru is projected to be the next Unicorn pany announced the series C20 funding supported by
after booked $150 million fresh funding in SIG, GDP Venture, Gunung Sewu, Samator Group and
December 2019. Aside from tutoring, they’ve AppWorks with undisclosed amount. They focus on
expanded to some other segments, such as providing a training platform for users in the
Ruangkerja for employees and Skill Academy for enterprise level.
those who want to learn non-academic subjects.

Figure 16. The most downloaded edtech app in 2019

Edtech Startup Android apps download*

10,000,000+

1,000,000+

500,000+
*Dec 2019

b. Agriculture Technology
TaniHub Group is one of startup agritech in indonesia. It supervised TaniHub (platform e-
commerce), TaniFund (p2p lending), and the newest named TaniSuppy (supply chain). After
obtaining Series A funding in May 2019, amounting to $ 10 million or equivalent to 143
billion Rupiah, TaniHub still wants to focus on acquiring more farmers to join and develop
agritech ecosystems in Indonesia.

Figure 17. The most downloaded agrotech app in 2019

Agtech Startup Android apps download*

100,000+

50,000+

10,000+
*Dec 2019

20
c. Health Technology
According to a survey by DSResearch on October 2019, among 600 respondents, 58% of the respon-
dents answer Halodoc as the top-of-mind health app or site, followed by Alodokter, Klikdokter, Mobile JKN
(BPJS Health Insurance), and Tanyadok.com in the top 5.

Figure 18. The most popular healthtech app in 2019

67.7%

28.5%

10.5%
8.3%
7.3%

d. Insurance Technology
Based on DSResearch on May 2019, about
69% respondents who subscribe to insurance
services is familiar with insurtech. Asuransiku
is the most popular online insurance service
(56.64%). It’s an insurance brokerage service
that helps users to get information and to
register for insurance services. It accommo-
dates four segments, including life insurance, vehicles,
property, and travel. Asuransiku also provides online
claim features. The company has registered and
obtained an operational permit from OJK. Other familiar
names are Axa MyPage (34.07%) and Asuransi88
(28.69%).

Figure 19. The most popular insurtech solution in 2019

AXA
Asuransiku Mypage

56.54% 34.07% 28.69% 25.11%

21.96% 21.73% 15.30% 13.19%

Other
11.61% 10.44% 2.22%

21
 5. Investment Landscape
In 2019, there were 113 disclosed funding announcement. From the 59 transactions with a disclosed
value, the collected fund reached $2.9 billion. Gojek dominates with $2 billion Series F investment.
Compared to previous years, the number of transactions has been monitored to increase, although the
value is quite dynamic.

Figure 20. Disclosed investment in the latest 3 years

Year Disclosed Funding Disclosed Transaction

2017 $2.959.250.000 67

2018 $1.465.050.000 71

2019 $2.959.815.000 113

a. Table of funded startup in 2019

The following is a list of funding throughout the year:

Figure 21. List of startup funding in 2019

Announced Company Vertical

Amount Stage

January
The Fit Company Wellness - Seed Funding

Koinworks Financial - Series A

Dana Cita Financial - Series A

Qlue Smart City - Other

Ajaib Financial $2.100.000 Seed Funding

IDN Media Online Media - Series C

Akulaku Financial $40.000.000 Series D

Invita SaaS - Seed Funding

Bukalapak E-commerce $50.000.000 Series D

Warung Pintar New Retail $27.500.000 Series B

Jojonomic SaaS - Series A

TADOtv Online Media - Seed Funding

Fore Coffee New Retail $8.500.000 Series A

February

Akseleran Financial $2.500.000 Seed Funding

Qlue Smart City - Series A

PlayGame Game Studio - Seed Funding

InfraDigital Education - Seed Funding

Talkabot Artificial Intelligence - Seed Funding

22
Announced Company Vertical Amount Stage

March Halodoc Health $65.000.000 Series B

The Shonet Online Media - Seed Funding

Bobobox Hospitality - Pre-Series A

Justika Lawtech - Pre-Series A

Foodizz Online Media - Seed Funding

Zuzu Hospitality $3.700.000 Series A

Kargo Technologies Logistic $7.600.000 Seed Funding

MobilKamu Car Marketplace - Series A

April
Ekrut Job Marketplace - Pre-Series A

Cashlez Financial - Series A

HappyFresh On-Demand $20.000.000 Series C

WowBid E-commerce $5.000.000 Pre-Series A

TokoTalk Artificial Intelligence $3.200.000 Seed Funding

SelenaGo Travel - Seed Funding

Triplogic Logistic - Seed Funding

May
Lubna Investment - Seed Funding

Aino SaaS $4.000.000 Seed Funding

Stockbit Investment - Series A

Qoala Insurance $1.500.000 Seed Funding

Advotics SaaS $2.700.000 Seed Funding

Bobobox Hospitality $1.500.000 Seed Funding

Laku6 E-commerce - Series A

Outpost Coworking Space $1.300.000 Seed Funding

Datasaur Artificial Intelligence - Seed Funding

Kedai Sayur On-Demand $1.300.000 Seed Funding

TaniGroup Agribusiness $10.000.000 Series A

Gradana Financial - Pre-Series A

June
Feedloop SaaS - Seed Funding

CoHive Coworking Space $13.500.000 Series B

Prosa.ai Artificial Intelligence - Series A

Kopi Kenangan New Retail $20.000.000 Series A

Otomo Car Marketplace $145.000 Seed Funding

23
Announced Company Vertical Amount Stage

July SweetEscape On-demand $6.000.000 Series A

Ritase Logistic $8.500.000 Series A

Waresix Logistic $14.500.000 Series A

SayurBox On-Demand - Pre-Series A

Wahyoo New Retail - Seed Funding

Pomona Loyalty $3.000.000 Series A

Mtarget SaaS - Seed Funding

Ralali E-commerce $13.000.000 Series C

August

Halosis Artificial Intelligence $1.200.000 Seed Funding

Carro Car Marketplace $30.000.000 Series B

BeliMobilGue Car Marketplace $40.000.000 Series A

Diva Financial - Other

Goola New Retail $5.000.000 Seed Funding

R Fintness Wellness $1.250.000 Pre-Series A

Kedai Sayur On-Demand $4.000.000 Series A

UangTeman Financial $10.000.000 Series B

Logisly Logistic - Seed Funding

Qontak SaaS - Pre-Series A

September

Sorabel E-commerce - Series C

Sociolla E-commerce $40.000.000 Series D

Eden Farm Agribusiness $1.700.000 Seed Funding

Kredivo Financial $20.000.000 Other

Base Wellness - Seed Funding

Jala Agribusiness $570.000 Seed Funding

Pluang Investment $3.000.000 Series A

PinjamWinWin Financial - Seed Funding

Crowde Financial $1.000.000 Pre-Series A

Julo Financial $10.000.000 Series A

Shipper Logistic $5.000.000 Seed Funding

Cumi Rental Marketplace - Seed Funding

24
Announced Company Vertical Amount Stage

October Bukalapak E-commerce - Series F

Sampingan Job Marketplace $1.500.000 Pre-Series A

TouchTen Game Studio - Series C

Verikool Online Media $750.000 Seed Funding

StickEarn Advertising $5.500.000 Series A

Gojek Ride-Hailing $2.000.000.000 Series F

Alodokter Health $33.000.000 Series C

RoomMe Hospitality - Series A

Yummy Corp Food $7.750.000 Series A

Zeinus Education Education $20.000.000 Series A

Finfleet Logistic $3.500.000 Series A

GetPlus Loyalty - Seed Funding

Paper.id SaaS - Series A

Crewdible Financial $1.500.000 Pre-Series A

November
Koinworks Financial $30.100.000 Series B

Pintek Financial - Pre-Series A

Workmate Job Marketplace $5.200.000 Series A

Alami Financial $1.500.000 Seed Funding

HarukaEdu Education - Series C

Amartha Financial - Series B

Halofina Financial - Pre-Series A

December
Komunal Financial - Seed Funding

Populix SaaS $1.000.000 Seed Funding

Kredivo Financial $90.000.000 Series C

Modalku Financial - Other

Evermos E-commerce $8.250.000 Series A

Carsome Car Marketplace $50.000.000 Series C

Travelio Hospitality $18.000.000 Series B

Ruangguru Education $150.000.000 Series C

Style Theory Rental Marketplace $15.000.000 Series B

Akseleran Fintech $8.500.000 Series A

Kopi Kenangan New Retail - Series A

Legalku Lawtech - Seed Funding

25
 b. Investment by round
Seed funding still dominates total transactions. An interesting trend that was captured
throughout 2019, the growth-stage funding for Series A to Series C increased compared to
previous years.

Figure 22. Funding by stage of investment

45

40 40 2017

35 35
2018
NUMBER OF TRANSACTION

31
2019
30
27
25

20 19

15 15
13 11 13
10 9 10

5 5
3 2 2 3 3 2 2
1 1 1 1
0

Seed Funding Pre- Series A Pre- Series B Series C Series D Series E Series F Series G
Series A Series B

There are several indications from that data. First
about increased investor confidence. Many
startups make it through the Minimum Viable
Product phase and validate their products,
thereby convincing investors to provide capital
to boost growth.
Second, the dominance of seed funding shows
the development of the startup ecosystem that is
still happening today. Many new startups are
constantly popping up, presenting a variety of
unique technology-based solutions.

c. Investment by vertical
As predicted in the DSResearch report in the previous year, tthe financial sector still dominate the
funding transaction. It's boosted by the opportunity of financial inclusion and ease of doing business
by the government.

In the business model, financial services support another sectors. Today, almost all digital services
rely on financial technology as a payment system. Instead of developing independently, most players
choose to collaborate with existing players.

25
26
 Figure 24. Funding by business vertical

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Advertising

Agribusiness

Artificial Intelligence

Blockchain

Car Marketplace

Coworking Space

E-commerce

Education

Financial

Food

Game Studio

Health 2017
2018
Hospitalithy
2019
Insurance

Investment

Job Marketplace

Lawtech

Logistic

Loyalty

New Retail

On-Demand

Online Media

Rental Market Place

Ride-Hailing

SaaS

Smart City

Software House

Travel

Wellness

Software as a Service (SaaS) also has significant portions compared to other verticals. Examples of start-
ups in this field include cashier application, financial systems, personnel services, and so on. Its role is almost
similar to financial technology, supporting pre-existing business models. Moreover, the jargon of digital
transformation is indeed being the main topic by decision makers.

27
d. Top 5 Investment
Of the funding transactions announced this year, here are five of the biggest:

Figure 24. Top 5 investment round in 2019

$2.000.000.000

$150.000.000

$110.000.000

$65.000.000

$50.000.000

e. The Most Active Venture Capital

East Ventures is the most active venture capitalist. They provide funding for seed and growth startup
stages. The following is a list of venture capital transactions in 2019:

Figure 25. The most active VCs in 2019

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Total investments in 2019

Skystar
Capital

Intudo
Ventures

28
Exit Strategy

29
 Chapter 3: Exit Strategy
1. Venture Capital
Exit strategy is essential "business model" for venture capital. Two popular methods
are through M&A and public offerings. In 2019 we notice several full exits successfully
accomplished by local venture capitals from their portfolio.

Figure 26. Exits by local VCs

IPO 5

Acquired

1 1 1 1

Alpha JWC Ventures Covergence Venture East Ventures Ideosource Kejora Ventures MDI Ventures Venturra Capital

MDI Ventures, a Telkom's CVC, made 5 exits in 2019 with 3 M&As and 2 IPOs. That
includes ObserveIT, Red Dot Payment, Wavecell, Whispir, and one undisclosed exit.

Meanwhile Berrykitchen, Bridestory and Limakilo help bring 3 exits for East
Ventures in 2019.

30
2. Acquisition
The following is a list of startup acquisitions in
2019:

Figure 27. M&A activities in 2019

Startup Acquired by Startup Acquired by

IDX
Optus

3. IPO Plans
William Tanuwijaya (Co-Founder & CEO of Toko-
pedia), Henry Hendrawan (President of Travelo-
ka), Boy Thohir (Commissioner of Gojek) have all
spoken to media about the possibility of IPO in
the coming years. Their latest funding round are
designed to increase company transactions so
that they could become profitable.
The experience of Uber and WeWork's will be an
expensive lesson for this plan. Moreoever, the
projection of economic slowdown in the foresee-
able future may disturb the whole strategy.
Some smaller startups plan to IPO in 2020, including
Pigijo and Cashlez.
In addition, the regulation on "Papan Akselerasi" which
was inaugurated by the Indonesia Stock Exchange has
begun to be utilized by digital startups. This mechanism
allows companies with small and medium assets to
raise funds through an IPO. Funds obtained can be
equivalent to seed funding. It is believed that this option
will be in demand by many startups as an alternative to
funding from private equity.

Figure 28. IPO plans

Company Announced Plan

Gojek Dual listing plan in Indonesia

and other countries.

Tokopedia Pre-IPO after ensuring

EBITDA is positive in 2020.

Traveloka Around the next 2-3 years

with dual listings.

31
Issues and
Opportunity

32
Chapter 4: Issues and Opportunity
1. Current Issue
a. Talent shortages never ends
This issue always arises every year. There's a fundamental reason for it. With startups becoming more
and more dependent on technological solutions, which dynamically improve everyday, more tech talents are
needed to support the business. As of now, the number of tech talents produced by university and
vocational education are yet to meet the demand.

b. Regulatory hurdle
In his second period as President, Joko Widodo has made several changes in the cabinet. Creative Economy
Agency is no longer a separate institution and merged into the Ministry of Tourism. A politician without
technical background is appointed as the minister of Information and Communication. The supervision of
the startup industry is now shifted to the Ministry of R&D.

In the payment sector, Bank Indonesia has initiated the availability of QR Code Indonesia Standard (QRIS)
as the standardized code for QR payment in Indonesia. It’s designed to help accelerate the adoption of
digital payment and digital inclusion.

c. Access to capital
It’s now perceived that it’s more difficult to raise money for seed rounds because VCs are getting more
selective to invest. The same rules apply for later stages, however most startups in this stage are more
qualified to step into the next level and likely will be backed by their respective investors until M&A or IPOs.

2. What's Next in 2020?

a. Funding is predicted to be slowing down
The issue of WeWork apocalypse presents negative sentiment in the digital startup investment landscape.
Not only the company's reputation, Softbank as the main investor also received critical reaction. Many
people have begun to be critical about transparency in calculating valuations and projecting the growth of
digital busi-nesses. It may bring a good effect, because people are increasingly realistic in seeing the
significant growth trends of a digital company.

Business analysts in various countries also project that there will be a slowdown in global economic growth
in 2020. It will certainly have an impact on national economic stability. According to OJK, the economic
slowdown in Indonesia will reach 5%, while in Southeast Asia it reaches 4.8%. The World Bank also
projects that the average worldwide slowdown will reach 2.5%, while according to the IMF's data it will
reach 3%.

b. More startup in growth stage

We are quite optimistic that in 2020 there will be more startups at the growth stage. Venture capitalists are
increasingly selective and have more measurable vertical coverage. For example, in 2019 the new retail
sector and SaaS are believed to have a bright future. The hypothesis, the products made by startups
in the field bridge the business transformation that is intensively carried out, both by corporations and SMEs.

From three years ago, almost a hundred new startups had passed seed funding. That would be the ideal
time for the founder to decide whether to continue with the business model or pivot. The determinant is
traction. When the product is validated properly, the startup will ideally raise a new round of funding to
accelerate business. Platform for growth is also available. Many startup acceleration programs that offer
it, both from investors and the government.

33
In addition, venture capitalists also began to form synergies to present joint funding initiatives. For
example, formed by East Ventures, SMDV, and Yahoo! Japan Capital in EV Growth. The combination of
limited partners and investors results in greater fundraising to be distributed to startups at the growth
stage. Likewise for corporate venture capital, they are open to embrace startups in the growth phase
to work together. The terminology of disruption has made the company's digital transformation
involve collaboration with startups.
Figure 29. Growth fund initiative for SEA's startup

Growth Fund Initiative in SEA Venture Participant

EV Growth East Ventures, SMDV, Yahoo! Japan Capital

Centauri Fund MDI Ventures (Telkom Group), KB Financial Group

Provident Growth Fund Provident Capital

Mirae Asset-Naver Asia Growth Fund Mirae Financial Group, Naver Asia

InterVest Star SEA Growth Fund Kejora Ventures, InterVest

Meranti ASEAN Growth Fund Gobi Partners

Vertex Growth Fund Vertex Ventures, Vertex Ventures HC

SoftBank Vision Fund Softbank Group

c. Corporates embark deeper in the ecosystem

Corporate Venture Capital (CVC is the practice of directly investing corporate funds into external start-
ups. The realization is in the acquisition of shares or forming joint venture agreements. Generally there
will be a transfer of knowledge or collaboration in innovation. For example, corporations share manage-
ment expertise in startups. Or startup products optimized to empower the business expansion.

CVC also has a special agenda, usually in harmony with the company's vision. That makes them always
have more specific coverage compared to venture capitalists. For example, CVC initiated by banks
wants to invest in financial technology startups. This year it is believed that their involvement in invest-
ment will continue to increase, along with the success of several CVCs.

Collaboration through managed funds is also possible, to gather more significant funds with invest-
ment coverage at the growth level.

Figure 30. List of local CVCs

CVC Company

Central Capital Ventura BCA

Sinar Mas Digital Ventures Sinar Mas Group

MDI Ventures Telkom Group (State-owned)

Mandiri Capital Indonesia Bank Mandiri (State-owned)

BRI Ventures Bank BRI (State-owned)

Telkomsel Mitra Inovasi Telkomsel, subsidiary of

Telkom Group (State-owned)

Lippo Digital Ventures Lippo Group

- Emtek Group

- Salim Group

- MNC Group

- Astra Group

34
d. New Retail is the next fintech
This is a very relevant business model in Indonesia. Its role can be a bridge as well as providing educa-
tion to market segments that are adapting to technology. One realization of this concept is the "new
retail", the implementation of a digital approach to enhance the experience of retail customers.

At the end of 2019, Kopi Kenangan received $20 million funding from Sequoia India, Serena Ventures,
Caris LeVert and Jonathan Neman. There is also Fore Coffee, a startup from local venture builder East
Ventures. They get $30 million in funding in early November 2019. The two businesses are included in
the new retail category.

They take advantage of the digital approach to complement the business model. Including utilizing
services such as mobile applications, data analysis, and so on. For instance, consumers can order a
glass of coffee through the app, so when they come to the cafe/booth no need to wait in line. The app
is also used for the loyalty program.

Figure 31. Most valuable new retail startups

Investor

GrabKios East Ventures, Emtek Group, 500 Startups, Spiral Ventures, Skystar
(previously Kudo)
Startup Capital, Singapore Press Holdings, Grab

East Ventures, Vertex Ventures, Agaeti Venture Capital, EV Growth, Line

Warung Pintar Ventures, SMDV, Pavilion Capital, Ovo Fund, Triputra Group, Digital
Garage

Alpha JWC Ventures, Sequoia Capital India, Serena Ventures, Arrive,

Kopi Kenangan
Jonathan Neman, Caris LeVert

Fore Coffee East Ventures, Pavilion Capital, Insignia Ventures Partners, SMDV,
Agaeti Venture Capital

Goola Alpha JWC Ventures

35
Closing Remarks

36
Closing Remarks

The startup ecosystem in Indonesia is getting more matured. With 6 unicorn startups
and at least 27 centaurs by the end of 2019, it’s on track to support the third largest
country, in terms of population, in Asia. Most startups in this category are still in the
e-commerce and fintech vertical.

Throughout the year, there’s an increase in funding, with around $2.9 billion of disclosed
amount from 113 funding announcements. However, most funding is still dominated by
unicorn and centaur startups. Venture capitals will be more selective to invest in early
stage startups, but later stage startups with justifiable business models will find a clear
path to reach maturity level.

In general, we see more exits for local VCs, although IPOs apparently still are a long shot
for 2020. While the economic slowdown and pandemic situation may disturb this
growth, the emerging startup in education, healthcare, and agriculture will be beneficial
to the industry.

37
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