DSInnovate Startup Report 2020

Startup Report 2020
Business Resiliency
during the Pandemic
© Mar 2021
This report is downloaded by Andika Wiratama (23967).

Supporter
KEMENPAREKRAF/
BAPAREKRAF
According to Google and Temasek research, Indonesia’s digital Indonesia’s digital economy in 2019
economy in 2019 reached $40 billion or Rp566.28 trillion with
a projection to be $130 billion or Rp1.8 quadrillion in 2025. $40 billion or
Those numbers make Indonesia’s digital economy above other
ASEAN countries such as the Philippines ($7 billion), Malaysia Rp566.28 trillion
($11 billion), Vietnam ($12 billion), Singapore ($12 billion), and
Thailand ($16 billion).
Kemenparekraf/Baparekraf is
Five sectors that most contributed to Indonesia’s digital economy come one of the Ministries/Agencies that
from e-commerce, online media (music, video, gaming, and advertis- focus on supporting the growth of
ing), fintech, online travel, and transportation services. The enormity Indonesia’s digital startups.
value of Indonesia’s digital economy can become an opportunity and a
challenge for the Indonesian. We hope Indonesia will not only become
a market for foreign startups. Therefore, the government encourages
new unicorns/decacorns like Gojek, Tokopedia, Traveloka, Ovo, and Bu-
kalapak since it will directly impact economic employment.
Kemenparekraf/Baparekraf is one of the Ministries/Agencies that

focus on supporting the growth of Indonesia’s digital startups. The
Kemenparekraf/Baparekraf has rolled out various programs, such as
incubation, business matching, exhibitions, competitions, and direct
assistance during 2020 to create a robust digital startup ecosystem.
Moreover, during the Covid-19 pandemic, programs such as Baparekraf
for Startup (BEKUP), High Pitch, Baparekraf Developer Day (BDD), Food-
Startup Indonesia (FSI), Government Incentive Assistance (Bantuan
Insentif Pemerintah/BIP), Nyatakan.ID and others will help the people
survive during an economic recession or even improve their economy.
The improvement of Indonesia’s digital startup ecosystem is indicated
by a report from The Global Startup Ecosystem 2020. Jakarta has been
named the second-best startup ecosystem in the Top 100 Emerging
Ecosystem under Mumbai, India.

Supporter
East Ventures is a pioneering sector-agnostic venture capital East Ventures is

firm in Indonesia. Founded in 2009, East Ventures has trans-
formed into a holistic platform that provides multi-stage in- the first investor of
vestment, including Seed and Growth for over 200 companies
in Southeast Asia.
Indonesia’s unicorn
companies
An early believer in the startup ecosystem in Indonesia, East
Ventures is the first investor of Indonesia’s unicorn companies,
namely Tokopedia and Traveloka. Other notable companies in
the portfolio include Ruangguru, Warung Pintar, Kudo (acquired
by Grab), Loket (acquired by Gojek), Tech in Asia, Xendit, IDN
Media, MokaPOS (acquired by Gojek), ShopBack, KoinWorks,
Waresix, and Sociolla.
East Ventures was named the most consistent top performing

VC fund globally by Preqin, and the most active investor in SEA
and Indonesia by various media.

3
Forewords
The Startup Report is annual signature research from DSInno-
vate. The objective is to summarize the growth of digital start-
ups in Indonesia. Aimed at founders, investors, regulators, me-
dia, and other stakeholders who play a role in the ecosystem.
In 2020, we are shocked by the Covid-19 pandemic. Physical

restrictions are being intensified to reduce virus transmission,
which has implications for the increasingly massive adoption
of digital services. Critical sectors such as education, finance,
health, and industry are more serious about carrying out digital
transformation to support daily productivity.
This condition makes digital business even more interesting

to explore. Moreover, it is projected that digital consumers will
experience an exponential increase in number. This report also
wants to validate the resilience of startups in Indonesia in the
face of a pandemic.
There are several focused observations made in the “Startup

Report 2020”, including consumers and businesses behavior,
digital startup trends, investment, and exit strategies. The in-
sight is gathered through qualitative and quantitative research,
involving founders, venture partners, and the government.
We hope that this document can be a reflection for stakeholders

in Indonesia’s digital ecosystem to determine the next import-
ant steps. Including bringing digital business in democratizing
economic development in Indonesia.
Amir Karimuddin
Director, DSInnovate

4
Contents
Forewords 3
Contents 4
01. Digital Ecosystem during Pandemic 6
A. Introduction 7
B. A Glimpse of Internet Penetration 9
C. Digital Business Growth 11
02. Starup Trends in Indonesa 19
A. Local Rising Starts 20
B. Top Apps 23
C. Funding in 2020 25
D. Funding Trends 32
E. Centaur Startups 36
F. Pandemic Dynamics 37
03. Exit Strategy 38
A. Merger & Acquisition 39
B. IPO initiative 40
04. Future Trends 41
A. More Collaboration & Consolidation 42
B. Government Support 42
C. SPAC & Dual Listing 43
Closing Remarks 45
Bibliography 47

01.
Digital
Ecosystem
during Pandemic

7
01.
Digital Ecosystem
during Pandemic
The Covid-19 pandemic is the most significant highlight of 2020. Business agility continues to be examined,
challenging every entrepreneur to be adaptive to the situation and market. Many industrial sectors are expe-
riencing severe turbulence due to the social restrictions that the government has intensified to suppress the
spread of the virus, including digital startups. However, digital transformation is becoming an accelerated
agenda to deliver services that are more contactless, efficient, and scalable.
A. Introduction
The growth of Indonesia’s internet economy in the Figure 1. List of Indonesia unicorns
last 10 years is considered very aggressive. With 6
unicorns owned, there is no doubt about the digi-
tal potential in Indonesia. Many variables underlie
Gojek Est. $10.5 billion
investor confidence in the ecosystem that is being
Tokopedia Est. $7.5 billion
built in Indonesia, including market share, regulato-
ry support, infrastructure readiness, and the agility
Traveloka Est. $5 billion
of entrepreneurs. Even at this level, stakeholders
have begun to think about the next steps to bring
Bukalapak Est. $3.5 billion
the business to a more massive impact through
regional expansion, consolidation, and plans to
OVO Est. $3 billion
go-public on the stock exchange.
Not only the business dynamics at the growth-stage,

but the local market is also still producing new start-
ups with unique values. It is proven that early-stage “The pandemic has accelerated many things in the
funding still dominates the quantity of venture capi- digital sector. In Indonesia, something that should have
tal funding from year to year. This means that there been achieved in 2023, has actually been done in 2021.
are still many opportunities for technological democ- This is good for our digital economy, but not optimal
ratization that can continue to be explored. Several because we’re in a recession. Hence, this situation is
potential industrial sectors have not yet been fully like a slingshot. Let’s say our digital economy is like a
digitized. If we make the unicorn a benchmark, Indo- rock, but it’s on hold. Covid-19 is like slingshot rubber,
nesia does not yet have a list of agriculture, manufac- once the rubber is loose, the stones will shoot forward.
turing, and even lending. So, after this our digital economy will go crazy.
However, if this pandemic is uncontrollable and takes
too long, it could ‘break up’ our potential.”
Willson Cuaca
Co-Founder and Managing Partner,
East Ventures

8
According to the Global Startup Ecosystem Report (GSER) published by Startup Genome, Jakarta ranks sec-
ond out of 100 cities worldwide on the list of emerging startup ecosystems. The data used for the assessment
is based on four main factors: performance, funding, market reach, and the talents of each city. The report also
assesses the ranking of each city by total ecosystem value and early-stage funding. Jakarta occupies the top
position with an ecosystem value of $26.3 billion, followed by Guangzhou ($19.2 billion) and Kuala Lumpur
($15.3 billion).
Figure 2. Rankings 2020: Top 100 Emerging Ecosystems, Startup Gnome
Rank Ecosystems Country Region Factor Scores (1-10)
Performance Funding Market Reach Talent
#1 Mumbai India Asia-Pacific

10 10 10 10
#2 Jakarta Indonesia Asia-Pacific 10 10 10 9
#3 Zurich Switzerland Europe 9 10 10 8
8 10 10 9
#4 Greater Helsinki Finland Europe
10 9 4 10
#5 Guangzhou China Asia-Pacific
Unfortunately, startup development is still cen- transactions had only returned to the equivalent of 50%
tered in metropolitan cities like Jakarta. When the before the pandemic. Business model adjustments are
evaluation is conducted nationally and averaging the key to sustainability; including efforts to pivot, tem-
the performance of all cities, the ranking drops porarily shift business focus, and streamline operations.
dramatically. For example, validated by Startup-
Blink in a study entitled The StartupBlink 2020 Meanwhile, several other sectors experienced an ex-
Global Ecosystem Report. ponential increase. E-commerce, online media (vid-
eo-on-demand, music streaming, etc), edtech, online
Indonesia is ranked 54th, down 13 places compared grocery/food delivery, and health tech are being the ar-
to 2019. In Southeast Asia, this position is only su- eas driven to grow due to changes in consumer habits
perior to Vietnam. Singapore is in the top position, during the pandemic.
which is ranked 16th. This report highlights the con-
tribution of several cities to ecosystem development.
In order, Jakarta, Bandung, Yogyakarta, Medan, and “Everyone says that Covid-19 is the best digital
Semarang are the cities that most significantly drive transformation officer and they’re right. We’ve seen
the growth of the startup ecosystem. so many proofs of what can be done by adopting
digital, such as in healthcare, logistics, and
Covid-19 has also brought negative and positive im- agriculture. There were negative impacts of Covid-19,
pacts on the digital industry. Accommodation ser- but it also brought positive impacts too. We had the
vices, event organizing platforms, and online travel opportunity to embrace the technology as a solution.”
services were observed to be the most affected.
According to our source, one of the biggest online
travel agent players in Indonesia, in early 2021 their Donald Wihardja
Chief Executive Officer, MDI Ventures

9
B. A Glimpse of Internet Penetration

Based on recent data by Asosiasi Penyelenggara Jasa Internet Indonesia (APJII), internet users in Indonesia
has reached 196.7 million in 2020, 7.68% increase from 2019. This means approximately 74% of Indonesia’s
population uses the internet. Compared to 2019, only 64.8% of the population uses the internet. Out of all the
users, 56.4% come from Java. Sumatra comes second with 22.1% users.
Figure 3. Internet penetration in Indonesia, APJII
Internet user penetration 2019-2020 (Q2)
Penetration Growth
Growth (%)
Internet
Penetration 2019
8.9%
73.7% Growth Internet User:
25,5 million
User Population
Indonesia Population 2019

Internet User (BPS Projection)
196.7 million 266.9 million

Population Growth; 2018>2019 (%)
1.03%
And it’s mobile-first ecosystem — according to WeAreSocial’s report, there were 338.2 million mobile connec-
tions in Indonesia by January 2020. The number of mobile connections increased by a whopping 15 million
(4.6%) between January 2019 and January 2020.
Furthermore, there are around 160 million social media users in Indonesia. Social media is one of the most
popular activities besides messaging apps, and the most used social media is Facebook with 82% of online
users using the platform. Meanwhile, the most used messaging app is WhatsApp. As the number of mobile
connections increases, social media users also increased by 12 million in 2020. Mobile internet usage is un-
dergoing double-digit growth rates and currently stands at over 61% among the population.

10
From a report of “Digital Consumers of Tomorrow, Here Today” by Bain & Company, there was a 60 million in-
crease in digital consumers from 2018 to 2020. Among other SEA countries, Indonesia had the most growth of
digital consumers. Other SEA countries had 5-9% growth in digital consumers, while Indonesia had 15% growth
in 2020. Currently, Indonesia has over 137 million digital consumers and represents 68% of the population
aged 15 and above.
Figure 4. Digital consumer population in Southeast Asia, Bain & Company
203M 77M 75M 58M 25M 5M
21M
83%
57M
137M (74%) 39M 4M
20M
(68%) 49M (68%) (79%)
(80%)
(68%)
52M 3.7M
(68%) 37M (74%)
46M
119M (61%) (63%)
(58%)
ID PH VN TH MY SG
Digital consumer population in 2019

“Indonesia’s digital landscape has experienced
Digital consumer population in 2020 incredible change and progress on the digital front
in the last few years. We expect that as the coun-
Non-digital consumer population try’s digital transformation takes on speed, we will
see new digital opportunities and synergies emerge,
along with a proliferation of products and services
geared towards meeting the needs of Indonesians.”
Ershad Ahamed
Chief Marketing Officer, OVO

11
C. Digital Business Growth

According to research by Google, Temasek, and followed by transportation & food platforms worth $5 bil-
Bain & Company, the Gross Merchandise Value lion, online media $4.4 billion, and online travel $3 billion.
(GMV) of Southeast Asia’s internet economy in
2020 will exceed $100 billion. Indonesia contribut- Not everything has increased, there are digital sectors
ed $44 billion or the equivalent of 621 trillion Ru- that have endured a decrease in the Compound Annual
piah. This value is formed from businesses in the Growth Rate (CAGR). Online Travel is the most signif-
seven most productive sectors, including e-com- icant, up to -68% due to social restrictions and termi-
merce, transport & food, online travel, online me- nation of various modes of transportation. Transport
dia, financial services, edtech, and health tech. & Food (ride-hailing & on-demand service) also experi-
enced a -18% decline due to reduced mobility amid the
In Indonesia, the majority of GMV is still backed popularity of #WorkFromHome.
by e-commerce services, amounting to $32 billion,
Figure 5. Indonesia’s internet economy growth, Google, Temasek, Bain & Company
E-commerce Transport & Food
21% 28%
54% 83 -18% 16
32 6 5
21
2 1
2015 2019 2020 2025 2015 2019 2020 2025
Online Travel Online Media

36%
18%
-68% 24%
15 10
10
4.4
5 3.5
3
0.6
2015 2019 2020 2025 2015 2019 2020 2025
i. E-commerce
The rapid development in Indonesia’s technological “The pandemic has supercharged digital adoption and
infrastructure has continuously accelerated Indone- everyone is embracing technology faster than ever before.
sia’s e-commerce market in recent years. According In the past 11 years, we have never seen and experienced a
to McKinsey & Company, Indonesians are among period of digital transformation as fast and as important as
the most avid digital users in the world with the today. Digitalization and technology are no longer seen as
largest social media engagement in the region. The just value-added but have become a necessity as
creation of tech startups are closely linked to the people are getting used to the convenience of online
growing online commerce. shopping and digital solutions.”
Melissa Siska Juminto, Tokopedia Chief Operating

Officer, said, the growth of the e-commerce business
in Indonesia was also driven by an increase in the
middle class and millennials who are more adaptive
in using apps. Even when a pandemic hits, e-com- Melissa Siska Juminto
merce players can interpret it as momentum to ac- Chief Operating Officer, Tokopedia
celerate digital adoption more quickly. Technology
and digitalization are no longer seen as value-added
but as needs.

12
Within the year of 2020, e-commerce only makes up 3% of the total retail sales in Indonesia. Despite the tiny
percentage, Indonesia’s population was predicted to migrate towards e-commerce and this was accelerated
due to the measures imposed during the Covid-19 pandemic. There is a new cohort of e-commerce users
due to the pandemic that are slowly adopting the online platforms to buy consumable products such as
health and personal care, groceries, and fast-moving consumer goods (FMCG).
Figure 6. Average top leader e-commerce website traffic, Similar Web
180,000,000
160,000,000
140,000,000 Tokopedia
120,000,000 Shopee
100,000,000
80,000,000
60,000,000
Bukalapak
40,000,000
Lazada
20,000,000 Blibli
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2018 2019 2019 2019 2019 2020 2020 2020 2020
In the second half of 2020, Tokopedia, one of the “Tokopedia’s primary focus has been to help the
top e-commerce sites in Indonesia, sparked invest- public fulfill their needs online at stable and
ment interests from Google, Facebook, Microsoft, normal prices, and support local businesses to
and Amazon. Subsequently, Microsoft’s investment continue to operate online. Seeing that some
in Bukalapak, Tokopedia’s rival, has further proven merchants had been setting essential health
the large interest and focus in Indonesia’s unicorn products and staple foods at unreasonable prices
e-commerce companies. and attaching to misleading titles/descriptions,
Tokopedia has permanently closed thousands of
A research by J.P. Morgan also highlighted the in- online shops and prohibited the showcasing of
crease in the use of mobile commerce compared hundreds of thousands of products that are in
to desktop use with 58% of transactions complet- violation. Tokopedia has also cut service fees by
ed on a mobile device as of June 2020. This num- 100% for sellers in the category of health products
ber may rise as many younger generations gain and staple foods in the early days of Covid-19.”
access to mobile devices. Optimizing mobile com-
merce becomes a priority for companies to pene- Melissa Siska Juminto
trate the market, which can be done through the Chief Operating Officer, Tokopedia
creation of an app that allows users to complete
transactions via the app.
In 2019, the top 3 payment methods for e-com-

merce in Indonesia are card, bank transfers, and
cash. Although the use of cash is declining and In-
donesians are moving towards a cashless society,
the payment trend in Indonesia still uses cash to
pay for online purchases due to the lack of digital
infrastructure and limited access to banks.

13
ii. Ride-Hailing
“Our efforts to respond to consumers’ changing

needs and support our partners amid unprecedented
circumstances have enabled us to register strong
The popularity of ride-hailing apps surges in In- growth last year. In 2020, our annualized GTV reached
donesia with many recording triple-digit growths US$12 billion in 2020 or up by 10%. Our core
within recent years. Digital ride-hailing depends on services have also recorded positive contribution
five factors: the internet, smartphone, broadband margins, while our monthly active users in Southeast
wireless network, digital map, and the global po- Asia reached 38 million in 2020.”
sition systems. The performance of ride-hailing in
Indonesia is closely related to these five factors.
The top two ride-hailing players in Indonesia are Kevin Aluwi
Gojek and Grab. Co-Founder and Co-CEO, Gojek
Gojek has been at the forefront of ride-hailing in Indo-

nesia as they are a local company and have covered
The rapid growth of ride-hailing apps also resulted in
many areas starting January 2015. Since then, Gojek
many push backs from the government, posing higher
has expanded its operations into many other sub-di-
restrictions for drivers due to protests of unfair com-
visions such as restaurant and grocery delivery, as
petition for established taxi companies as they lose
well as courier services. Grab, on the other hand, is
passengers. The Ministry of Transportation then im-
a singapore-based taxi booking app. They launched
posed all drivers to obtain appropriate business licens-
a service in June 2014, offering GrabCar, GrabBike,
es and must pass inspections. Furthermore there are
and followed by the courier service and food delivery
requirements to own company-owned vehicles, vehi-
service as well.
cle pool and vehicle facilities. To compensate for this,
Grab worked with local taxi cooperatives and Gojek
It is not to our surprise that these ride-hailing ser-
partnered with Blue Bird to provide car rental services.
vices are able to gauge Indonesian customers as
Tariff ranges were also increased for online ride-hailing
they fill in for the need for transportation and pub-
services to cover the gap.
lic services in Indonesia. These platforms offer the
same function but different user experience. The
Due to the pandemic, ride-hailing services are left with
large accessibility and accommodation for cash
almost no customers and have to strategize to keep
payments spiked popularity within ride-hailing ser-
business going. Statqo Analytics reported that Gojek
vices. They are able to channel their service to fit
and Grab experienced a 16% and 14% downturn in active
the norm in Indonesia, provide relatively fair pric-
ride-hailing users, respectively. Grab Indonesia released
es and pay for the rider and the driver. Gojek and
a statement during a press conference on March 23 that
Grab, however, moved towards developing online
the “transportation sector is sloping” but the “food and
payment platforms in recent years to compliment
logistics delivery orders are still doing quite good”. They
their service, which allows users to move towards
are planning to expand their services, GrabMart and
a cashless society.
GrabAssistant, to increase essentials delivery service
and on-demand concierge service. This will also allow
These ride-hailing applications in Indonesia also
opportunities for driver-partners to earn more during
accommodate the need for users to reduce travel
the pandemic through the Grab platform.
time and cost through the usage of motorbike tax-
is. Showcased by aCommerceIQ Asia, as of 2018,
Gojek also experienced similar issues with a decrease
Greater Jakarta, Surabaya, and Semarang are the
in ride-hailing services but able to maintain orders in
top three ride-hailing users by location. This makes
their food and delivery services, GoFood and GoSend.
it especially important for users that they are able
GoMassage, the on-demand massage service, has
to find a ride that can navigate through congested
been put into halt, while GoClean, the house cleaning
traffic and narrow side streets, aspects that make it
service, is still running with increased health and safe-
difficult for automobiles and public transportation
ty measures. They are able to implement daily health
to reach. Furthermore, the use of motorbike tax-
check-ups for cleaners and equip them with the neces-
is are able to offer lower cost and travel time for
sary safety equipment.
the users. This makes motorbike taxis much more
preferable than other types of transportation for
ride-hailing services available in indonesia.

14
“The pandemic has presented challenges for all

sectors of the economy, as more people practice The need for ride-hailing services in Indonesia is appar-
physical distancing and shift towards digital ent to fill in for gaps that the public transportation ser-
services to meet their needs. However, despite the vices cannot cover. The reduced travel time, cheaper
challenges, we have found areas of optimism and fare, and accessibility of ride-hailing services provided
opportunities to reduce frictions amidst the crisis by these online ride-hailing providers makes it popular
and at the same time support our driver partners within the Indonesian market. The on-going pandem-
as well as merchants. As a whole, our ability to ic has placed a halt on many activities and have vis-
adapt swiftly to the situation has been one of our ibly declined orders within the transportation sector.
competitive advantages amid the pandemic, Ride-hailing providers are taking many initiatives to
enabling our business to maintain sustainability keep business afloat and to ensure driver-partners are
even in changing circumstances.” given the opportunity to receive income.
Kevin Aluwi
Co-Founder and Co-CEO, Gojek
iii. Fintech
Financial technology (fintech) is one of the drivers of For example, digital wallets are an essential component
the digital economy in Indonesia. According to Indo- in the growth of digital business in Indonesia. Almost all
nesia Fintech Association (AFTECH) Annual Survey transactional platforms today integrate their services into
Member 2019/2020, Covid-19 has accelerated the digital wallets. The purpose is to provide a seamless user
adoption of fintech services. The e-money usage experience on payment. According to iPrice in Q2 2020,
has increased with the total transaction of Rp17.55 GoPay, which supports the Gojek ecosystem, still tops
trillion in April 2020. OJK also recorded the loan dis- the standings, followed by OVO, which is integrated with
bursement from the period of January to June 2020 its competitor, Grab.
has reached Rp113.46 trillion by 659,186 lenders to
25.7 million borrowers. “Many consumers and merchants do not yet have ac-
cess to modern financial products, with over 77% of
Moses Lo, Xendit Co-Founder & CEO, said the fintech Indonesians reportedly unbanked or underbanked.
ecosystem in Indonesia has grown massively com- OVO and other peers have leveraged digital technology
pared to four or five years ago where it was very thin- to offer solutions that bypass barriers of access, formal
ly defined as only payments and a little bit of lending. documentation and so forth which have traditionally kept
“I think now that fintech is mature in 2020-2021, it’s individuals from using such services, however the finan-
full of insurance, remittances, point of sale systems, cial inclusion gap--while shrinking--remains sizable, indi-
accounting systems, invoicing systems, lending, en- cating that many consumers and merchants are not yet
dorsements, wallets, etc. So now, we’ve just seen this digitally savvy,” said Ahamed.
proliferation, massive growth of fintech companies
in Indonesia and Southeast Asia,” said Lo. From P2P lending perspective, Jonathan Bryan, Koin-
Works Chief Marketing Officer mentioned that innovation
The increase of the number of new players will is one of the biggest challenges in this industry, especially
also lead to a competitive market. Currently, the when dealing with the uncertainty during Covid-19.
payment and loan sector has started to show its
top player. Meanwhile, other fintech segments “We were able to set [business] plans in one or two years
still have the potential to consolidate the market. ahead because the situation was more stable. Even
Financial Services Authority in Indonesia (OJK) though the vaccine distribution has just started, we can’t
recorded 164 fintech in 2019, but reduced by 10 be sure of what will happen afterwards. Uncertainty is a
to 152 players as of December 2020. Bottom line, big issue. It’s affected how we project the long-term busi-
consolidation will be one of the directions for the ness, provide the assessment, or make sure the business
growth of the fintech ecosystem. owners make the repayments. However it encouraged us
to improve our credit scoring system on businesses that
Although the digital usage in Indonesia is growing are prominent and stable. It gives us a force to change,”
extremely fast, the digital consumers in Indonesia added Bryan.
are still far from mature. Ershad Ahamed, OVO Chief
Marketing Officer, stated that many Indonesians still
don’t have access to digital, and for those who do,
many don’t know how to leverage digital technology
to empower themselves.

15
iv. Online Travel

Tourism is one of the most affected sectors by Covid-19. The lockdown and travel restrictions in certain
areas in Indonesia has significantly impacted the online travel agent (OTA) businesses, causing the sharp
decline in hotel occupancies, flight, and recreation tickets compared to 2019.
Based on the e-Conomy SEA 2020, the GMV of Indonesia online travel has plunged by 68% to US$3 billion in
2020 from US$10 billion in 2019. However, the number is estimated to soar by 36% to US$ 15 billion in 2025,
following the recovery of post-pandemic. Due to the virus pressure, OTA players have put a lot of efforts to
overcome the impact of this crisis.
Airy or Airy Rooms decided to permanently shut down its business operation per end of May 2020. Meanwhile,
unicorn OTA Traveloka recorded a significant drop of daily active users by 70% since March 2020 and received
ten times of refund requests or equal to thousand requests per minute in April 2020. Throughout 2019, OTA
platforms such as Traveloka recorded a total number of visitors of 5.34 million, followed by Tiket.com 1.25
million, and 695,000 visitors in Pegipegi.
“Throughout 2020, Traveloka has delivered various Albert

technology-based innovations to adjust with the situ- Co-founder, Traveloka
ation. We have launched OnlineXperience, Traveloka
Eats Delivery, and Traveloka Covid-19 Test, which have
received positive feedback from customers. The num-
ber of our daily active users rose to almost 100% and
around 200,000 of Covid-19 Tests had been booked
from June-December 2020.”
Additionally, Traveloka also introduced a Clean Partners campaign since August 2020 with a purpose of
helping its customers and partners comply with the CHSE protocols (Clean, Health, Safety, and Environ-
ment). To this date, Traveloka Clean Partners has partnered with more than 1.000 hotels in 90 cities and
1.000 Xperience partners from 12 different industries in 64 cities.
Despite the crisis, the government has issued a number of incentives to boost the tourism sector, such
as discounted flight tickets for top 10 tourist destinations in Indonesia. The total budget spent is Rp298.5
billion. OTA contribution to Indonesia’s tourism cannot be underestimated. Databoks Katadata shows that
online ticket transactions have reached US$ 8.6 billion or Rp125 trillion in 2018. The number is predicted to
grow to US$ 25 billion (Rp355 trillion) in 2025, which also is the largest in Southeast Asia.
v. Online Media
Last year, DailySocial.id and Populix surveyed peo- The competition among video streaming services in
ple in multiple big cities in Indonesia to identify Indonesia is getting tougher, especially during
applications that were intensively used during the pandemic where there’s a large demand for
pandemic. Apart from productivity apps (68%) to entertainment contents. We also see that the
support education and business, entertainment market is still exploring the right formula to
apps (66%) are also starting to be widely used by monetize their business because Indonesian
the public. Social media and video-on-demand consumers are not getting used to the subscription
(VOD) are two entertainment services that are in model. Nevertheless, they are now aware to start
high demand during the #StayAtHome period. paying the contents instead of getting free or
illegal contents.”
Dhiku Hadikusuma Wahab

Chief Product Officer, Vidio

16
VOD business competition is getting stronger. Local MNC Group also has several VOD apps. One of the most
challengers try to seize the market that has been significant is RCTI+, which offers live television channel
cultivated by global players. The giant media com- services in their group through an application, equipped
panies in Indonesia are also more focused on de- with gamification features. The existence of exclusive
veloping their app platforms. EMTEK, the group that content indicates the direction of their business to be-
oversees several television stations, currently has come a video streaming platform. The company is also
Vidio as their streaming service option. So far, the developing Vision+ and plans to consolidate to increase
traction of the application is quite competitive with its capabilities.
outside players such as WeTV, Netflix, iQIYI, Disney+
Hotstar, etc. A variety of exclusive entertainment
content is presented, including sports matches.
Figure 7. VOD content mapping for Indonesian market
Non-Exclusive Movies and Series
Sport Matchs Original Content
TV Streaming
The biggest challenge still facing is monetization. Players are still looking for formulas and business models
that best fit this market. Diversification of content also provides an alternative for people to avoid pirated
content. At this point, the players believe that user education will be an important investment for the sustain-
ability of their business in the future.

17
vi. Edtech
Edtech in Indonesia has been growing since 2012. In Indonesia, the most used type of edtech service is on-
Due to the pandemic and the rising number of line tutoring (e.g Ruangguru, Zenius, etc), with 39.6% us-
Covid-19 cases in Indonesia since March 2020, ers. The second most used edtech service is E-learning
schools are forced to adapt to remote learning. In- with 36.6% users. Around 71.3% males have used online
donesia’s 60 million students are not able to attend tutoring, and 74.1% females have used e-learning. Half
in-person classes, instead they learn by attending of the people using edtech services agree that the mate-
online lectures, which accelerates the use of edtech. rials are easy to access and delivered well, and most im-
Based on the Edtech Landscape Survey by the World portantly suitable for their budget. Majority of the people
Bank, edtech platforms showed 200% growth in the (76.4%) are willing to pay for edtech services, and the
number of users and applications downloaded in ideal edtech app fee is less than Rp50,000/month. It’s
March 2020. based on Edtech Report 2020 by DSInnovate.
Figure 8. The most promising edtech startups in Southeast Asia, Holon IQ
Language Learning Steam & Coding Education Financing
Verification
Higher Education
Skills & Jobs

Learner Support, Tutoring
& Test Prep
Management &
Learning Environment
50 Southeast
Asia Edtech

18
While edtech faced significant growth during the

pandemic, there were also several constraints. “Edtech in Indonesia is still very nascent. Market
The main problem with edtech learning is that it adoption is still perhaps 4-5 years behind
is not accessible for everyone. Students living in countries like China and India. The pandemic
rural areas don’t have reliable internet connections makes a lot of parents and families realize for
and have trouble accessing online learning. Many the first time that education-tech is not a nice to
lower income students also lack access to prop- have, it is a must have. We believe that education
er devices such as laptops. Survey by DailySocial tech in Indonesia/Southeast Asia will continue to
shows that around 80% users have problems with be one of the most promising sectors in the years
internet connectivity and around 40% users don’t to come.”
have adequate devices to access edtech plat-
forms. Around 40% users also have trouble with Belva Devara
understanding English. Co-Founder and CEO, Ruangguru
It is clear that edtech has grown significantly since

the pandemic and played an important role in dis-
tance learning. However, many Indonesians still
have trouble accessing edtech due to poor digital
infrastructure. Therefore, the government should
invest more in improving digital infrastructure, es-
pecially in rural areas.
vii. Healthtech
Research states that edtech and healthtech are the two new sectors that have rapidly accelerated due to the
pandemic. For healthtech itself, Covid-19 accelerated the use of digital patient support solutions. There’re
many types of services available in the market, including telemedicine, e-pharmacy, appointment scheduling,
health information, AI symptom checker, etc.
Figure 9. Innovation in healthtech, Google, Temasek, Bain & Company
Patient Support (B2C/B2B) Healthcare Provider

Payer Support (B2B)
Support (B2B)
• Health Information • Clinical Support • Smart Underwriting

• AI Symptom Checker • Electronic Health Records • Risk Profiling
• Health & Wellness Marketplace • Monitos (Hardwares) • Activity Monitoring
• Health Management Tools • Fraud Management
• E-pharmacy
• Telemedicine
• Appointment Scheduling
• Disease management
Many of these healthtech startups played a signif- “During Covid-19, our online consultation service
icant role during the pandemic. For example, they has gone up by 6 times in the first half of 2020.
helped the Indonesian government by providing However, we think that teleconsult still has a room
the Covid-19 rapid test and PCR test. Furthermore, for improvement because people still prefer
some players featured a chatbot or another unique physical interaction. According to a source, more
solution for preliminary risk assessment, a ques- than 50% of health problems actually can be
tionnaire that helps people identify their risk in get- solved without meeting in person. It challenges us
ting Covid-19. One of the most essential sectors of to develop innovations and do experiments based
health tech is e-pharmacy. With the platform, peo- on the consumers’ needs and pain points.”
ple don’t need to go outside to buy medicine and
can rely on delivery services. This is especially im-
portant during the pandemic as people who have a
Dionisius Nathaniel
high risk of getting Covid-19 can get their medicine
Chief Marketing Officer, Halodoc
delivered to their doorstep.

02.
Startup Trends
in Indonesia
19

20
02.
Startup Trends
in Indonesia
A. Local Rising Stars
Every year there is a unique business model that deserves the spotlight. They come from early-stage startups to
solve specific problems that exist in the community. We define rising stars as a prospective innovation that has
high potential to develop rapidly in the local market.
There are several points of observation. First, in a relatively short period, the app received high attention from the
citizens. Second, the large market size in terms of the targeted consumer segment. Third, competition between
players in the landscape. Fourth, interest in investing for related startups; validation of the investor hypothesis.
From these criteria, here are the rising stars in 2020:
SME Cashflow App

According to data published by BPS, as of 2018, there are around 64.2 million SME units in Indonesia. This
large amount is a potential market share to work on. Among the SaaS or apps revealed by startups for SMEs,
one that is currently on the rise is a business cash flow recording service. The developers deliberately target mi-
cro-small businessmen, such as shop owners or culinary stands, because most of them still use paper-based
manual recording models -- some don’t even do it.
Here are some of the popular apps: BukuKas (Google Playstore Rank, Business Category: 3), BukuWarung (6).
Credibook (46), Akuntansi UKM (84), Moodah (121), Lababook (184), Teman bisnis (254), and Akuntansiku
(300). In general, the application offers almost the same features. Cash flows, sales, accounts payable and
reporting. Some products have an automatic debit collection feature via SMS or WhatsApp. Almost all of these
applications are released for free.
Referring to the list, two players have the highest download statistics, namely BukuKas and BukuWarung.
Both of them were founded at the end of 2019 and this year they are actively raising new funding to accel-
erate their business.

21
Seed Investors Surge, 500 Startups, Credit Saison, East Ventures, AC Ventures, Golden Gate
and angel investors Ventures, Tanglin Venture Partners, and
angel investors
Pre-Series A Surge, Credit Saison, Speedinvest, Quona Capital, East Ventures,

Investor S7V, January Capital, Cambium AC Ventures, Golden Gate Ventures,
Grove Capital, Prasetia Dwidharma Tanglin Venture Partners, Partners of DST
Global, GMO Venture Partners,
Soma Capital, HOF Capital, VentureSouq,
and angel investors
Series A Investor Sequoia Capital India, Saison Rocketship.vc, angel investors, and some
Capital, January Capital, undisclosed local corporate
Founderbank Capital, Cambium
Grove, Endeavor Catalyst,
angel investors
Accelerator Surge Y Combinator
App Download 1 million+ 1 million+

(Google Play)
These startups have a long-term mission to become a fintech. At the beginning of its debut, it focused on
helping micro-entrepreneurs to record their incoming and outgoing money. This data is an important asset for
bringing these business owners closer to financial services, especially credit. Cash flow data can be great an-
alytical material for credit scoring purposes. From the existing data history, the analyst can see the income-ex-
penditure trend to determine feasibility.
SME Supply Chain Management
Ula’s seed funding of $10.5 million in June 2020 87% of SMEs that are still not digitized. This is a chance
caught the attention of stakeholders in Indonesia’s for startups to work on segments that are still untouched
digital startup ecosystem. Many factors underlie, by digital. Many venture capital investment hypotheses
apart from the profile of the founder, there is a po- consider the SME market share to be promising. And
tential business model that can provide maximum supply chain management is a good starting point to be
returns for investors. The service concept provides able to touch business prospects end-to-end.
an e-commerce-like app to make it easier for SME
players to find partners and wholesale products. Im- Many startups are trying to establish a supply chain eco-
pressive traction in the beta version boosts investor system with their technological approaches. Decacorn
trust. Ula booked series A funding of $20 million in Gojek released the GoToko app in September 2020 to
early 2021. facilitate SME partners in making fulfillment. Gojek col-
laborates with Moka, the largest point of sales startup in
According to BPS data as of May 2020, as many as the region which has been acquired since 2019. Beside
11.7 million out of 64 million SMEs have penetrated that, other names are starting to strengthen their position
digital services. There are more than 55.8 million or in the SME supply chain.

22
Deeper Penetration of Paylater or BNPL
According to Bank Indonesia, as of February 2020, Paylater Provider Integrated E-commerce

there were 17.61 million credit cards in circulation.
The number is quite small compared to the total Bukalapak, Lazada, Tokopedia, Blibli,
population. Credit cards tend to be harder to get, Elevenia, JD.id, Ralali, iLotte, Jakmall,
because of the more difficult credit requirements Bhinneka, Matahari.com, Fabelio,
people need to fulfill. Meantime, transactions in Sociolla
digital consumer apps such as e-commerce, food Bukalapak, Blibli, JD.id, Alfacart
delivery, and digital content continue to increase.
This penetration gap is used as an opportunity by Tokopedia, Bukalapak, Blibli, Bhinneka
fintech to present paylater or Buy Now Pay Later
(BNPL) services. Elevenia, JD.id, Bhinneka
In its initial phase, paylaters were integrated into Blibli, Elevenia

e-commerce or marketplaces. Along with its develop-
ment, other services such as accommodation book-
Shopee
ing sites also provide the same payment options.
DailySocial’s study on “Paylater on Indonesia’s E-com-
merce Platform” identified 7 integrated services on JD.id
popular e-commerce sites/apps in Indonesia.
Open Finance Solution
The demand for API-based fintech services continues to increase. Several specific buzzwords continue to be
introduced, from open banking, open finance, to banking as a service. In Indonesia, there are at least 8 registered
startups working to popularize these platforms, such as Ayoconnect, Brankas, Faspay, Finantier, Instamoney,
Midtrans, Online Pajak, and Xendit. They are also often categorized as “fintech enablers”, allowing an organization
or company to provide financial services such as payments, loans, investments, taxation, remittances, etc.
Figure 10. Basics of open banking concept, Fintech Futures
Third-Party
Developer
Community
Extend Customer Reach
Increase Revenue
Back-end Open API Mobile & Web
Systems Applications
Stimulate Innovation
Third-party platforms are in tremendous demand as they offer effectiveness and efficiency. As is well known,
fintech service development must comply with strict standards set by regulators. Each player must be registered
and/or licensed to be able to operate to serve users. By using an API-based platform, a business does not need
to think about these aspects and focus on executing business escalations. The API platform allows a unique
payment model according to the size of the business transaction and the type of service used (customized).

23
B. Top Apps
Based on several metrics that can be analyzed from simliar web, we rank the top apps and sites in the most at-
tractive sectors in Indonesia’s digital ecosystem. Visit statistics and rankings are quite fluctuating, the data shown
is taking the average for the last 6 months in 2020.
E-commerce
Toko Online Average Monthly Visit App Store Ranking Play Store Ranking
Shopee 129.3 million #1 #1
Tokopedia 114.6 million #2 #4
Bukalapak 38.5 million #7 #7
Lazada 36.2 million #3 #3
Blibli 22.4 million #6 #5
Ride-Hailing
Gojek Grab
Apps Download 170 million 187 million
City Coverage 203 224
Services 20 14
Online Travel
Platform Average Monthly Visit App Store Ranking Play Store Ranking
Traveloka 9.36 million #3 (in Travel) #2 (in Travel and Local)
Tiket.com 2.95 million #5 (in Travel) #3 (in Travel and Local)
Pegipegi 1.07 million #13 (in Travel) #29 (in Travel and Local)
NusaTrip 2.01 million #76 (Travel) #445 (in Travel)

24
Online Media
Vidio 16.89 million 7 (in Entertainment) 1 (in Entertainment)
RCTI+ 2.9 million 10 (in Entertainment) 6 (in Entertainment)
Maxstream 8.3 million 23 (in Entertainment) 19 (in Entertainment)
Mola TV 12.28 million 33 (in Entertainment) 110 (in Entertainment)
UseeTV GO 2.65 million 47 (in Entertainment) 42 (in Entertainment)
Edtech
Ruangguru 387,690 3 (in Education) 10 (in Education)
Zenius 3.79 million 16 (in Education) 11 (in Education)
Pahamify.com 943,330 12 (in Education) 13 (in Education)
Cakap 831,460 121 (in Education) 37 (in Education)
Healthtech
Halodoc 31.39 million 3 (in Medical) 6 (in Medical)
Alodokter 53.88 million 4 (in Medical) 4 (in Medical)
Good Doctor 734,130 6 (in Medical) 3 (in Medical)
Klikdokter 20.05 million 29 (in Medical) 8 (in Medical)

25
C. Funding in 2020
Throughout 2020, DailySocial recorded 113 funding transactions by investors to Indonesian startups, posting a
total fund of more than $3.3 billion. The nominal is obtained from 50 publicly disclosed funding transactions. A
total of $2.43 billion of this was aimed at unicorn startups.
Here’s the full list:
Funding Dates Startup Business Stage Value Investor
December-20 Bonnels New Retail Seed Funding Hypefast
December-20 Desty SaaS Seed Funding East Ventures
December-20 Cove OTA Series A $4,600,000 Keppel Land, Idinvest Partners-

Eurazeo Group, Smarty City Ven-
ture Fund, Idinvest HEC Venture
Fund
December-20 Brodo New Retail Series A BRI Ventures, GDP Venture
December-20 Haus! New Retail Series A $2,000,000 BRI Ventures
December-20 Medigo Healthtech Pre-Series A Venturra Discovery, Golden Gate

Ventures, Kenangan Kapital
December-20 Digiasia Bios Fintech Debt Funding $50,000,000 Undisclosed
December-20 Bukalapak Fintech Corporate Round $3,500,000 Ashmore Asset Management

(BIB Unit)
December-20 Pintek Fintech Series A Finch Capital, Accion Venture Lab
December-20 Cakap Edtech Series A $3,000,000 Heritas Venture Fund, Strategic

Year Holdings, Investidea
Ventures, Prasetia Dwidharma
December-20 Otoklik On-Demand Seed Funding Surge, GK Plug and Play,

$2,000,000 Kenangan Investment Fund
1, Lentor Ventures, Noble Star
Ventures
November-20 Kata.ai SaaS Series B Trans-Pacific Technology Fund,

MDI Ventures, Buana Investama
November-20 Gojek Ride-Hailing Corporate Round $150,000,000 Telkomsel
November-20 SocialBuzz Marketplace Seed Funding UMG Idealab
November-20 Logisly Logistic Series A $6,000,000 Monk’s Hill Ventures
November-20 AdaKerja Job Marketplace Seed Funding $1,000,000 Beenext
November-20 Alodokter Healthtech Series C MDI Ventures, Sequis, Golden

Gate Ventures, Heritas,
Hera Capital
November-20 Kredivo Fintech Debt Funding $100,000,000 Victory Park Capital Advisors

26
November-20 Finantier Fintech Seed Funding East Ventures, AC Ventures,

Genesia Ventures
November-20 Investree Fintech Debt Funding $15,000,000 Accial Capital
November-20 LinkAja Fintech Corporate Round $100,000,000 Grab, Telkomsel, BRI Ventures, Mandiri
Capital Indonesia
November-20 Pahamify Edtech Series A Shunwei Capital, Lien Family Office
November-20 Tokopedia E-commerce Series H $350,000,000 Temasek, Google
November-20 Bukalapak E-commerce Corporate Round $100,000,000 Microsoft, Emtek, GIC
October-20 Datasaur SaaS Seed Funding $2,800,000 Initialized Capital, Y Combinator, CTO
OpenAI Greg Brockma
October-20 Warung Energy Energy Startup Seed Funding New Energy Nexus
October-20 Codemi Edtech Seed Funding Init-6
October-20 Andalin Logistic Pre-Series A BEENEXT, Access Ventures, ATM Capital
September-20 BukuWarung SaaS Seed Funding Partners of DST Global, GMO

Venture Partners, Soma Capital, HOF
Capital, VentureSouq
September-20 iSeller SaaS Series A Mandiri Capital Indonesia,
Openspace Ventures
September-20 Jarvis SaaS Seed Funding UMG Idealab
September-20 Asumsi Online Media Seed Funding East Ventures
September-20 Waresix Logistic Series B $75,000,000 EV Growth, Jungle Venture, SoftBank

Ventures Asia, EMTEK Group, Pavilion
Capital, Redbadge Pacific
September-20 Webtrace Logistic Seed Funding Corin Capital
September-20 PasarPolis Insurtech Series B $54,000,000 LeapFrog Investments, SBI Investment,

Alpha JWC Ventures, Intudo Ventures,
Xiaomi
September-20 Izy Hospitality Seed Funding Indigo Creative Nation, Arkblu Capital,
Accelerating Asia Ventures
September-20 Xurya Energy Startup Seed Funding Clime Capital
September-20 Yummy Corp Cloud Kitchen Series B $12,000,000 SoftBank Ventures Asia, Vectr Ventures,
Appworks Ventures, Quest Ventures,
Coca Cola Amatil X, Palm Drive Capital,
Intudo Ventures, Sovereign’s Capital
August-20 Sirclo SaaS Series B $6,000,000 East Ventures, OCBC NISP Ventura,
Skystar Capital, Sinar Mas Land
August-20 BukuKas SaaS Pre-Series A $9,000,000 Surge, Credit Saison, Speedinvest, S7V,
January Capital, Cambium Grove Capital,
Prasetia Dwidharma

27
August-20 CrediBook SaaS Seed Funding Insignia Ventures Partners,

Payfazz
August-20 Hipwee Online Media Seed Funding Young On Top
August-20 Burgreens New Retail Pre-Series A ANGIN, Teja Ventures
August-20 Wahyoo New Retail Series A $5,000,000 Intudo Ventures, Kinesys Group, Coca-Cola
Amatil X, Arkblu Capital, Indogen Capital,
Selera Kapital, Gratyo Universal
Indonesia, Isenta Hioe
August-20 Tjetak Marketplace Pre-Series A Vertex Ventures
August-20 Ayoconnect Fintech Pre-Series B $5,000,000 BRI Ventures, Kakaku.com, Brama One
Ventures, Finch Capital, Amand Ventures,
Strive, AC Ventures
August-20 KitaBeli E-commerce Seed Funding East Ventures
August-20 Aruna Aquatech Series A $5,500,000 East Ventures, AC Ventures, SMDV
August-20 eFishery Aquatech Series B Go-Ventures, Northstar Group, Aqua-spark,

Wavemaker Partners
July-20 Bahasa.ai SaaS Seed Funding East Ventures, DIVA, SMDV, Plug and Play
Indonesia
July-20 Traveloka OTA Venture Round $250,000,00 EV Growth, Siam Commercial Bank, FWD
Group, GIC
July-20 Sneakershoot On-Demand Seed Funding Salt Ventures
July-20 Kiddo Marketplace Seed Funding OCBC NISP Ventura
July-20 TiinTiin Marketplace Seed Funding $2,500,000 Amand Venturs, PT Luminary Media
Nusantara
July-20 AwanTunai Fintech Debt Funding $20,000,000 Accial Capital
July-20 Payfazz Fintech Series B $53,000,000 B Capital Group, Insignia Ventures, Tiger
Global Management, Y Combinator, ACE &
Company, Quiet Capita, BRI Ventures
July-20 Storie E-commerce Seed Funding Surge, Alpha JWC Ventures
July-20 SYCA Official E-commerce Seed Funding Salt Ventures
July-20 Sociolla E-commerce Series E $58,000,000 Temasek, Pavilion Capital, Jungle Ventures
July-20 eFishery Aquatech Other Barclays, Unreasonable Group
June-20 Gojek Ride-Hailing Series F $375,000,000 Facebook, PayPal
June-20 Jendela360 Proptech Seed Funding $1,000,000 Beenext, Prasetia Dwidharma, Everhaus
June-20 Cinepoint Others Seed Funding Ideosource Entertainment

28
June-20 GoPlay Online Media Seed Funding ZWC Partners, Golden Gate
Ventures, Openspace Ventures,
Ideosource Entertainment,
Redbage Pacific
June-20 Ula New Retail Seed Funding $10,500,000 Sequoia India, Lightspeed India, SMDV,
Quona Capital, Saison
Capital, Alter Global,
angel investor
June-20 Shipper Logistic Series A $20,000,000 Prosus Ventures, Lightspeed, Floodgate,

Y Combinator, Insignia Ventures, AC
Ventures
June-20 Job2GO Job Marketplace Seed Funding BANSEA
June-20 Wallex Fintech Series A BAce Capital, SMDV, Skystar Capital

Technologies
June-20 InfraDigital Edtech Series A AppWorks
June-20 Fabelio E-commerce Series C $9,000,000 AppWorks, Endeavor Catalyst, MDI

Ventures, Aavishkaar Capital
May-20 BukuKas SaaS Seed Funding Sequoia Surge, 500 Startups, Credit
Saison, angel investor
May-20 Tokocrypto Others Seed Funding Binance
May-20 Bobobox OTA Series A $11,500,000 Horizons Ventures, Alpha JWC Ventures,
Kakao Investments,
Sequoia Surge, Mallorca
Investment
May-20 Kopi Kenangan New Retail Series B $109,000,000 Sequoia India, B Capital, Horizons Ven-
tures, Verlinvest, Kunlun,
Sofina, Alpha JWC Ventures
May-20 KlikDaily New Retail Series A Global Founders Capital
May-20 GudangAda Logistic Series A $25,400,000 Sequoia India, Alpha JWC

Ventures, Wavemaker Partner
May-20 KoinWorks Fintech Debt Funding $10,000,000 Lendable
May-20 Pintek Fintech Pre-Series A Accion Venture Lab,

Global Founders Capital
May-20 Dekoruma E-commerce Pre-Series C InterVest Star SEA Growth Fund 1,

Fundamental, OCBC NISP
Ventura, Skystar Ventures
May-20 Bonza Big Data Seed Funding East Ventures
May-20 Delman Big Data Seed Funding $1,600,000 Intudo Ventures, Prasetia Dwidharma,
Qlue
April-20 Bahasa.ai SaaS Pre-Series A East Ventures, DIVA, SMDV, Plug and
Play Indonesia
April-20 Webtrace SaaS Seed Funding Prasetia Dwidharma,

Astra Ventures
April-20 BukuWarung SaaS Seed Funding East Ventures
April-20 Kargo Logistic Series A $31,000,000 Tenaya Capital, Sequoia India, Intudo
Technologies Ventures, Amatil X, Agaeti Convergence
Ventures, Alter Global, Mirae Asset
Venture Investment

29
April-20 Modalku Fintech Series C BRI Ventures
April-20 Qoala Fintech Series A $13,500,000 Centauri Fund, Sequoia India, Flourish
Ventures, Kookmin Bank Investments,
Mirae Asset Venture Investment, Mirae
Asset Sekuritas. Central Capital Ventura,
MDI Ventures, Surge, MassMutual
Ventures Southeast Asia, SeedPlus
April-20 KoinWorks Fintech Debt Funding $20,000,000 Quona Capital, EV Growth, Saison Capital
April-20 Investree Fintech Series C $23,500,000 Mitsubishi UFJ Financial Group, BRI
Ventures, SBI Holdings, 9F Fintech
Holdings Group
April-20 Eduka Edtech Seed Funding Init-6
April-20 ProSpark Edtech Pre-Seed Agaeti Ventures, Prasetia Dwidharma,

angel investor
April-20 TaniHub Agritech Series A $17,000,000 Openspace Ventures, Intudo Ventures,
UOB Venture Management, Vertex
Ventures, BRI Ventures, Tenaya Capital,
Golden Gate Ventures
March-20 Datasaur SaaS Seed Funding $1,000,000 GDP Venture, Angel Investor
March-20 Gojek Ride-Hailing Series F $1,200,000,00 Undisclosed
March-20 YukStay Proptech Seed Funding Y Combinator
March-20 Digiasia Bios Fintech Series B Mastercard
March-20 Pahamify Edtech Seed Funding $150,000 Y Combinator
March-20 Chilibeli E-commerce Series A $10,000,000 Lightspeed Ventures, Golden Gate Ven-
tures, Sequoia Surge, Kinesys Group, Alto
Partners
March-20 Giladiskon E-commerce Seed Funding SOSV
March-20 Nusantics Biotech Seed Funding East Ventures
February-20 Printerous SaaS Series A BAce Capital, AddVentures, GDP Ventures,

Gobi Agung, Sovereign’s Capital
February-20 Vutura SaaS Seed Funding Telkom Group
February-20 Greenly New Retail Seed Funding East Ventures
February-20 Hukumonline Lawtech Series A Emerging Media Opportunity Fund
February-20 Visinema Film Series A $3,250,000 Intudo Ventures, GDP Venture, Ancora
Capital
January-20 Svara Online Media Seed Funding UMG Idealab
January-20 Zulu New Retail Seed Funding Gojek
January-20 Moladin Marketplace Pre-Series A East Ventures, CyberAgent

Capital, Angel Investor

30
Startup Startup Business Stage Value Investor
January-20 Waresix Logistic Series A $25,500,00 EV Growth, Jungle Ventures
January-20 Arkademi Edtech Seed Funding SOSV
January-20 Gredu Edtech Pre-Series A Vertex Ventures
January-20 Hacktiv8 Edtech Pre-Series A $3,000,000 East Ventures, Sovereign’s Capital, SMDV,
Skystar Capital, Convergence Ventures,
RMKB Ventures, Prasetia Dwidharma,
Everhaus
January-20 Tinkerlust E-commerce Seed Funding Undisclosed
From its stages, early-stage funding still dominates with the number of transactions reaching 47 times. For seed
funding, 11 transactions were made for startups with SaaS products, then 5 each for e-commerce and edtech
startups, and 4 each for new retail and online media startups.
Figure 11. Funding transaction trends based on the stage
50 47
40
Number of Transaction
30
24
20
10
10 9
6
4 4 1
2 1 1 1 1 1 1
0
Series A
Pre-Series A
Series B
Corporate
Series C
Series F
Other
Pre-Seed
Pre-Series B
Pre-Series C
Series E
Series H
Seed Funding
Debt Funding
Round
Venture Round
Funding Round

31
For all transactions, this year fintech and SaaS are the most popular. In the fintech landscape, there are 5 initial
stages of funding (Seed to Series A), 2 each in Series B, Series C, and corporate rounds, and 6 debt funding. Total
funds raised were $413.5 million from 12 transactions that were billed. LinkAja became one of the players that
received the largest funding last year with a value of $100 million from Grab, Telkomsel, BRI Ventures, Mandiri
Capital Indonesia.
Figure 12. Funding transaction trends based on business verticals
20
18
17
Number of Transaction
15
11
10 10
10
8
5 5
4 3 3 3
2 2 2 2 2 2 2
1 1 1 1 1 1 1
0
Cloud Kitchen
Film
Hospitality
Insurtech
Lawtech
SaaS
E-commerce
Edtech
New Retail
Marketplace
Aquatech
Energy Startup
Fintech
Logistic
OTA
Big Data
Healthtech
Job Marketplace
Others
Proptech
Agritech
On-Demand
Biotech
Online media
Ride-hailing
Business Landscape
Based on the investment table, East Ventures is the most active venture capitalist with 14 funding transactions
completed. Most of it is seed funding, including the first round of investing in a startup. The following is a list of
10 institutions with the highest number of investment transactions during 2020:
Figure 13. The most active venture capital in 2020
East Ventures
Prasetia Dwidharma
BRI Ventures
Intudo Ventures
Sequoia India
AC Ventures
Alpha JWC Ventures
Golden Gate Ventures
SMDV
MDI Ventures
0 2 4 6 8 10 12 14 16

32
D. Funding Trends
From the announced nominal funding data, we try to analyze trends in the past four years. Overall, funding in 2020
is likely to increase. Four unicorns pushed for this achievement. In this period, Gojek, Traveloka, Tokopedia, and
Bukalapak announced their newest rounds to accelerate the business. Meanwhile, non-unicorn startups tend to
experience a decline. Amid the uncertainty and economic crisis caused by the pandemic, most investors chose
to participate in follow-on funding with minimum speculation.
Figure 13. Year-on-year funding trend (2017-2020)
3.5bm 3.30bn
2.96bn
2.96bn
3.0bm
2.80bn
2.43bn
2.5bm
2.05bn
2.0bm
1.5bm
1.47bn
1.0bm 1.14bn 0.91bn 0.88bn
0.5bm
0.33bn
0.16bn
0.0bm
2017 2018 2019 2020
Total Funding Unicorn Funding Non-Unicorn Funding
Currently, the scope of digital startup services in In- able from an administrative side. The opportunity will be
donesia is quite broad, facilitating personal and busi- even greater when the penetration of the internet and
ness needs. Some business models also exist as a smartphones becomes wider in Indonesia. The govern-
complement to existing apps, supporting transac- ment itself has a special program for even distribution
tion needs and service implementation. Of the doz- of broadband networks throughout the country.
ens of industry categories worked on by founders for
startups, fintech is still the most favorite in the last SaaS products cater to businesses from micro to large
three years to be invested by venture capitalists, an- scale. In terms of the total available market, tens of mil-
gel investors, and others. Followed by software as a lions of SMEs are a potential market share. Their partic-
service (SaaS) and e-commerce. ipation in the online marketplace encourages the adop-
tion of digital services in other operational lines. Starting
According to Bank Indonesia data presented in from cash flow recording, employee management, tax
September 2020, there are 91.3 million unbankable management, to supporting business activities online.
populations. They have not had access to banking The social restrictions due to the pandemic have also
financial services. Fintech players try to facilitate provided a strong force for the digital transformation.
this gap with a type of service that is more afford-

33
Following, the total number of investments for each vertical. The color indicates the year, which ranges from 2017
to 2020.
Figure 14. Year-on-year funding trend based on the business vertical (2017-2020)
Number of Company Investments
0 10 20 30 40
Fintech
Saas
E-commerce
Online Media
On-Demand
New Retail
Logistic
Edtech 2017 2020
Car Marketplace
Artificial Intelligence
Job marketplace
Hospitality
Agribusiness
Loyalty
Education
Wellness
Coworking Space
Marketplace
Lawtech
Ride-hailing
Advertising
OTA
Investment
Health
Game
Aquatech
Travel
Smart City
Rental Marketplace
Proptech
Others
Insurance
healthtech
Game Studio
Energy Startup
Big Data
Software House
On-demand
Insurtech
Food
Film
Digital Signature
Cloud Kitchen
Blockchain
Biotech
Agritech

34
The following is the startup business landscape that has received the most funding, measured by the total dis-
closed investment value.
Figure 15. Year-on-year funding trend based on the value (2017-2020)
Funding (in $)
0B 2B 4B 6B 8B 10B 12B
E-commerce
Ride-hailing
On-Demand
Fintech
Logistic
Travel
New Retail
Education
Car Marketplace
SaaS
2017 2020
OTA
Financial
Health
Coworking Space
Hospitality
Job Marketplace
Insurtech
Agribusiness
Loyalty
Artificial Intelligence
E-commerce is the top vertical category with a total accumulation of investment almost Rp12 trillion from 2017-
2020. Tokopedia and Bukalapak accounted for a large part of the total funding, which both just received new
rounds in Q4 2020. Ride-hailing comes in second place with Gojek reportedly secured Rp18 trillion last year.
Another top category is followed by on-demand, fintech, and logistics sectors.

35
Observed from the stage, seed funding continues to dominate from year to year. This is an important indication,
proving the quality of the founder’s talents who are increasingly capable. Most of the early-stage investors place
the founder as the main variable in their assessment and analysis. This statistic also reveals the hypothesis of
investors who still believe there is great potential that the unicorns have not accommodated. Because most of
the startups that are funded have a unique approach in each feature and business concept.
Figure 16. Year-on-year funding trend based on the stage (2017-2020)
Stage
Seed Funding
Series A
Pre-Series A
Series B
Series C
2017 2020
Other
Series F
Debt Funding
Series E
Corporate Round
Series D
Pre-Series B
venture Round
Series H
Series G
Pre-Series C
Pre-Seed
0 20 40 60 80 100 120 140

Number of Company Investments
And this is a breakdown of the previous graph that shows yearly total funding amount. Company is filtered by Top
10 companies by total funding between 2017 and 2020.
Company 2017 2018 2019 2020

70,000,000 40,000,000
50,000,000 100,000,000
1,350,000,000 35,000,000 2,000,000,000 1,725,000,000

8,000,000 20,000,000 109,000,000
30,000,000 110,000,000 100,000,000
150,000,000
12,000,000 40,000,000 58,000,000
1,100,000,000 1,100,000,000 350,000,000
350,000,000 250,000,000
1,600,000 14,500,000 100,500,000

36
E. Centaur Startups
A centaur or aspiring unicorn is a category for startups with a valuation of $100 million - $999 million. The com-
pletion of later-stage funding and the enthusiasm of investors to follow-on funding in 2020 have encouraged
several startups to occupy this position. In the 2019 report, we noted that there were 27 centaurs from Indone-
sia-based startups. In 2020 it increased to 43 startups. Here’s the full list:
$100 million-$500 million $501 million-$999 million
Fintech
E-commerce
Logistic
New Retail
SaaS n/a
n/a
Online Travel
Agritech n/a
Healthtech n/a
Coworking n/a
n/a
Edtech
n/a
Insurtech
n/a
Online Media

37
F. Pandemic Dynamics
The Covid-19 pandemic has definitely opened up opportunities in digitization that accelerated the usage of digital
services in many sectors including e-commerce, ride-hailing, healthtech, fintech, edtech, and entertainment in
Indonesia. There was a massive growth in terms of number of users or traffics. For example, Ruangguru closes
2020 by delivering its services to more than 22 million users in Indonesia, an increase by 7 million users or equal
to 46% compared to December 2019.
Industry Case Study Growth
Education 22 million user in December 2020 or

46% growth compared to December
2019
E-commerce 2.5 new merchant during 2020
On-Demand (including $20 billion GTV in 2020, 10% growth

ride-hailing, food delivery, compared to 2019
digital payment etc)
P2P Lending 2.5 trillion Rupiah of loan funds dis-

tributed to 30 thousand SMEs in 2020,
32% growth compared to 2019
On the other hand, it also has had a negative impact Despite the challenges, they all lead to the same thing,
on certain sectors, such as OTA and Software as a which was solving a problem through innovation to
Service (SaaS). Mekari admitted that the company adapt with the rapidly shifting of consumer behavior.
experienced a slowdown in terms of new custom- The companies had to act faster in order to make sure
er acquisitions last year. According to CEO Mekari that they support the customers in this crisis. This strat-
Suwando Soh, business owners prioritized more on egy was reflected in several vertical businesses, like fin-
products with short-term commitments, in contrast tech and entertainment.
to Mekari’s business model which provides long-
term commitments. KoinWorks and Xendit had the same approach where
they pulled much efforts to help the customers, such as
As a matter of fact, pandemic has become a crucial build tools faster so SMEs can go onboard easier and im-
momentum for startups to see how far they can get prove the credit scoring system to provide better under-
through the crisis. Different business verticals have writings. On-demand streaming platform Vidio also men-
different challenges. We highlighted a few examples. tioned that its primary focus was more on strengthening
First, home learnings have caused the gap in Indo- the payment ecosystem, localized contents, and digital
nesia education even wider due to the inequality of apps (both TV and mobile) with the purpose of maintain-
internet access. Plus, Indonesia is one of the low- ing customer retention during these times.
est-performing mobile internet connections.
Second, healthtech players were also keeping up

the pace to understand consumers’ needs. Hal-
odoc revealed that the platform, which became
the first Indonesia’s healthtech to provide the rap-
id test drive thru, had a difficulty developing the
service because Covid-19 never existed before.
So were the digital payments, where they faced
a surge in demand for contactless payments and
e-commerce.

03.
Exit Strategy
38

39
03.
Exit Strategy
Startup exit is a healthy sign for the ecosystem to support sustainability. For venture capitals, fund from an exit
will be given back to ecosystem as an investment for new ventures. There are several paths to choose from,
through public offerings or acquisitions. For numerous startups, 2020 is also an important milestone in their
journey as they are almost a decade old. This is the best opportunity for investors to exit amidst a business that
is growing significantly.
A. Merger & Acquisition

Consolidation is one of the best options for a growth strategy. The realization is by acquiring similar startups in
the market or startups that provide complementary products to strengthen business models. Throughout 2020,
DSInnovate recorded 13 corporate actions in mergers and acquisitions.
Announced Date Company Acquired Company Vertical
Dec 2020 Healthtech

Dec 2020 Logistic
Sep 2020 Logistic
Aug 2020 Fintech
Aug 2020 Fintech
Jul 2020 Big Data
May 2020 Proptech
May 2020 Online Media
Apr 2020 SaaS
Mar 2020 Marketplace
Feb 2020 SaaS
Jan 2020 Online Media
Jan 2020 On-Demand

40
B. IPO Initiative
Through the Acceleration Board, a small company (including SME/early-stage startup) can go public on the IDX.
Issuers do not have to reap profits when registering. Companies are required to have a maximum profitability pro-
jection until the sixth year. Even so, regarding total tangible assets, there is no specific limit required. The regula-
tion is based on POJK No.53/POJK.04/2017 concerning Registration Statements for Public Offering and Capital
Increase by Providing Pre-emptive Rights by Issuers with Small-Scale Assets or Issuers with Medium-Scale As-
sets. Companies with small-scale assets are those with assets of not more than Rp50 billion, while medium-scale
companies have assets of more than Rp50 billion to Rp250 billion.
Throughout 2020, two startups conducted IPOs through this mechanism. Here are the details of the company:
Announced Date Company Code Status Market Cap (Dec 2020)
Jan 2020 PGJO Acceleration Board Rp17.57 Billion

May 2020 CASH Acceleration Board Rp400.71 Billion
Local unicorns have also begun to convey their

ambition to conduct an IPO. The most explicit plan “It has nothing to do with the pandemic to go public
came from Traveloka. The largest OTA in Southeast or not. When we talk about IPO, it’s actually about
Asia hopes to go public this year through the Special companies whose ecosystems are starting to
Purpose Acquisition Company (SPAC). Travel and mature in Indonesia. It means, with or without the
accommodation services experienced turbulence pandemic, we’ll still continue to do an IPO because
at the beginning of the pandemic. However, the con- it is time. Tokopedia is 11 years old, Traveloka is
dition has started to recover, relying on domestic 8 years old, and Gojek’s monetization [strategy] is
travel. Even the business has achieved profitability. clearer now. Some are starting to get profits and
Currently, Traveloka is developing its fintech line and some have clear routes [to profitability]. It’s just the
strengthening its presence in the regional market. way we do the IPO.”
Gojek, Tokopedia, and Bukalapak have also given Willson Cuaca

similar signs -- it has not been explicitly disclosed. Co-Founder and Managing Partner,
East Ventures
The success of the IPO by startups will be an import-
ant milestone for the ecosystem and can become a
benchmark for the next generation of founders. The
scenario also continues to be explored, including
considering listing on the Indonesia Stock Exchange.

04.
Future
Trend
41

42
04.
Future Trend
Based on the data shown, the growth of digital startups in Indonesia is still on a positive trend. The new habits due
to the pandemic also provide opportunities to further deepen the democratization of technology. This year we are
projecting several important things that will shape the digital ecosystem in Indonesia.
A. More Collaboration & Consolidation

We interviewed 10 C-levels of market-leading startups. Enterprises are also increasingly involved in collaborat-
They said that market competition in their respective ing with startups to accelerate the digital transformation
landscapes is getting more and more competitive. agenda. One of the strategies is to set a Corporate Ven-
The context is between local and global players ex- ture Capital (CVC) to invest strategically in startups at the
panding into Indonesia. However, the market share is growth stage. From DailySocial data, 11 big companies
yet huge to strive for good traction to their business. are actively investing in digital startups, including Astra
For example in fintech, about 140 million people are International, MNC Group, Salim Group, EMTEK, Lippo
still unbankable. The existing business model does Group, Telkomsel, Telkom, Bank BRI, Bank Mandiri, Bank
not yet accommodate all aspects, there’re new niches BCA, and Sinarmas Group.
being explored by early-stage startups.
More in-depth collaboration and consolidation are pro-
To facilitate the expanding needs of consumers, jected to occur this year. The market is segmented, while
startups continue to intensify collaborations with oth- startups with high valuations want to grab a higher mar-
ers. Its big mission is to establish a comprehensive ket size. There are two choices, they can develop similar
service ecosystem. On the technology side, each plat- services internally or perform an M&A. However, in the
form also decides to be open so that it can be inte- past few years, it seems that the founder’s mindset has
grated with other applications, mostly through the Ap- begun to shift towards consolidation.
plication Programming Interface (API) mechanism. A
mutual synergy that brings a vital impact encourages
consolidation between players through Mergers and
Acquisitions (M&A).
B. Government Support
The government has shown its support in the digital Other support was also provided by the Ministry of Re-
economy, not only as a regulator, but also as an ac- search and Technology (Kemenristek) through Startup
celerator. For the past years, a number of programs Inovasi Indonesia (SSI), an annual program that was
have been initiated to facilitate the growth of the rebranded from the previous name, Perusahaan Pem-
digital ecosystem.The Ministry of Communications ula Berbasis Teknologi (PPBT) in 2015-2019. During
and Informatics (Kominfo) have launched Gerakan those periods, PPBT had provided mentoring and de-
Nasional 1000 Startup Digital (2016) and Nexticorn velopment for startups from universities, research &
(2017). The new accelerator program Startup Stu- development institutions, and the public. A total of 1307
dio Indonesia was released last year, targeting ear- startups have received funding with a total budget of
ly-stage to pre-series A. According to President Joko Rp371.7 billion. Minister of Research and Technology
Widodo, this program aims to boost the digital econ- Bambang Brodjonegoro said that incubators are es-
omy by connecting startups to fundings ecosystem sential to sustain startup business today. Plus, startup
and world investment institutions, and simplify the ecosystem is beneficial in supporting Micro, Small, and
bureaucratic process with conducive regulations. Medium Enterprises (SME).

43
The government also facilitates the ecosystem “If you look at it, the number doesn’t move much or hasn’t
through regulation. Bank Indonesia (BI) and OJK been measured statistically. This means that many do not
accommodate the needs of the financial technolo- understand the importance of IPR, let alone protecting their
gy industry by issuing regulations regarding limited [innovation]. We see the youngsters build startup businesses,
trials or regulatory sandbox. Regulatory Sandbox is but they tend to market their products faster and forget to
a trial program for fintech startups to test their sys- protect the intellectual property. They only realize the prod-
tems and businesses for 6 to 12 months before the uct/innovation needs to be protected once they get investors
business is fully operational. or their products are sold.”
However, not every government initiative has been

well absorbed. In that case, the awareness of Intellec-
tual Property Rights (IPR) among Indonesian start-
ups is still considered low. From 2016 to 2018, the Robinson Sinaga
Indonesian Creative Economy Agency (BEKRAF) has Director of Intellectual Property
provided the IP registration for 5,671 creative players. Facilitation, Kemenparekraf
Unfortunately, according to BEKRAF and Statistics
Indonesia (BPS), only 11% of 8.2 million new creative
economy business units have registered their IPR
IPR is a crucial legal instrument in protecting products and innovations that he advises startup players to register
it first before being commercially launched. On the other hand, Sinaga thinks that the current situation has bene-
fited them to promote the awareness of intellectual property on a wide scale. Initially, Kemenparekraf facilitated
the registration program with limited participants. Since everything has been done virtually during pandemic,
Kemenparekraf can promote it through digital channels so it can reach more innovators across Indonesia.
In the long run, policy support plays a major role for the startup industry so they can accelerate their plans of
action even faster, whether to accommodate the urgent needs through technology or with the purpose of creat-
ing ecosystem growth. In 2020, the government has passed the Job Creation Law as a key strategy to increase
economic growth in Indonesia. Chairman of the Indonesian Venture Capital Association (Amvesindo) Jefri Sirait
said that the new law gives fresh air to startups and the investment ecosystem.
Meanwhile, Chief Marketing Officer of Halodoc Dionisius Nathaniel emphasized that new policies will follow new
needs. This is the same as when the government gave approval to healthtech platforms to provide drive thru rapid
tests. In this case, the government can expand its synergy with a higher purpose. For example, allowing more
healthtech platforms to participate in providing vaccination across Indonesia. Halodoc was recently appointed by
the Ministry of Health as one of the partners to open the Covid-19 vaccination service post.

44
C. SPAC & Dual Listing

Three variables encourage startups to conduct IPO, starting from the right momentum, proving business, and
needs. Momentum is driven by external factors, such as government stimulus or market response. While the
proof business and needs are internal, validated using systematic business metrics. For startups with a large
business scale, the calculation of each variable is much more complex.
IPO plans by local unicorns have caught the public’s attention. Two things are highlighted, regarding the mech-
anism and the place chosen. From the existing news, many sources said that the Special Purpose Acquisition
Company (SPAC) would be appointed to bring the startup to the New York Stock Exchange. According to the Cor-
porate Finance Institute, SPAC is a corporation formed for the sole purpose of raising investment capital through
an IPO. Such a business structure allows investors to contribute money towards a fund, which is then used to
acquire one or more unspecified businesses to be identified after the IPO.
Figure 17. An overview of SPAC, Corporate Finance Institute
Ownership
Special Target
Parent Purpose Company
Company Acquisition
Company
IPO
Fund
Investors Investors Investors
SPAC is an option because of its efficiency in terms of time and procedure. Unlike the traditional IPO process
which takes a relatively long time, SPAC can be executed in a matter of weeks. So that the company can stay
focused on maintaining growth after being listed on the stock exchange with a higher market capitalization value
(equivalent to valuation).
Meanwhile, the government and local exchanges also An IPO in the United States allows startups to gain more
encourage unicorns to conduct IPOs in Indonesia. exposure from global investors. And an IPO in Indonesia
The Indonesia Stock Exchange continues to make will contribute more net benefits for the country, includ-
adjustments to facilitate this need. Based on the joint ing inviting more global investors to see companies on
mediation with startup players, several points will be IDX. This condition makes dual listing ideal for unicorns.
considered, as follows: They can choose to list on two exchanges at once.
• Facilitating unicorn startups to be on the A successful exit through IPO will be a strong motivation
mainboard. for other founders to pursue the same path. It encour-
ages more entrepreneurs to develop digital startups in
• Expand the sub-sector classification. Indonesia. This can also increase investors’ interest in
obtaining bigger investments in local ecosystems.
• Regulatory reforms, such as the special rights
of founders to do dual-class shares.

45
Closing
Remarks

46
Closing Remarks
Conclusion
Based on the information and data presented in the report, here are some conclusions:
1. Internet user penetration continues to encourage the increase in digital consumers. These sta-
tistics indicate the large opportunities for digital startups to do business escalation. The seven
major sectors also have the potential to generate a larger GMV in the following year.
2. SME empowerment services show great traction in Indonesia. The potential is huge because
there are still many business efficiency solutions that can be offered to entrepreneurs.
3. The pandemic has not had a serious negative impact on investment turnover in the Indonesian
startup ecosystem. Growth-stage funding initiated by investors supports local startups to be-
come leaders in their business verticals.
4. Indonesia has the potential to have unicorns from various business verticals. Currently, there
are 43 startups in the aspiring unicorn levels.
5. The trend of collaboration and consolidation among digital players is becoming a “new normal”
in the ecosystem.
6. The clearer path of exit allows the regeneration of founders to run well. New startups have
great potential to get more support and attention from investors.
Issues and Opportunities

Based on the analysis of business data and trends, there are several points about issues and opportuni-
ties that deserve attention for founders, investors, regulators, and other stakeholders, including:
1. The drive for domestic expansion is to unlock digital business potential beyond metropolitan ar-
eas, including targeting users in tier-2 and tier-3 cities. In addition to providing benefits for the unit
economics for startups, this business escalation will also encourage digital literacy and financial
literacy for the community.
2. The IPO wave for Indonesian technology companies will be an important milestone for the eco-
system. Support from local entities is needed to relax go-public rules according to digital company
business models. The growth-first approach makes the structure and calculation of valuations not
necessarily the same as conventional company income statements.
“As the internet population population increases,

‘inclusivity’ becomes the key word for the next
wave of startup adoption. Technology solution is Rama Mamuaya
no longer for urban young consumer, but is now Founder & CEO, DailySocial.id
growing more and more into rural and even more
traditional and conventional part of society.”

47
Bibliography
[1] Asosiasi Fintech Indonesia. 2020. Laporan Annual Member Survey.
[2] Asosiasi Penyelenggara Jasa Internet Indonesia. 2020. Laporan Survei Internet APJII.
[3] Badan Pusat Statistik. 2019. Potensi Peningkatan Kinerja Usaha Mikro Kecil.
[4] Bain & Company. 2020. Digital Consumers of Tomorrow, Here Today.
[5] Corporate Finance Institute. 2020. Special Purpose Acquisition Company.
[6] DailySocial, Populix. 2020. Menengok Sederet Aplikasi Hiburan Terpopuler Selama Pandemi.
[7] DailySocial. 2020. Studi Layanan Paylater di Platform E-commerce Indonesia.
[8] DSInnovate. 2020. Edtech Report 2020: Transforming Education.
[9] DSInnovate. 2020. Fintech Report 2020: Maintaining Growth during Pandemic.
[10] Fintech Futures. 2018. Open banking: what you need to know.
[11] Google, Temasek, Bain & Company. 2020. e-Conomy SEA 2020.
[12] IQSuite by aCommerce. 2018. Uber, Gojek, Grab: What Do People in Indonesia Actually Want from Ride-Hailing Apps.
[13] J.P. Morgan. 2020. E-commerce Payments Trends Report: Indonesia.
[14] Journal of Science and Technology Policy Management. 2020. Customer acceptance of ride-hailing in Indonesia.
[15] McKinsey&Company. 2020. Indonesia’s Online Commerce Journey.
[16] Startup Genome. 2020. The Global Startup Ecosystem Report.
[17] StartupBlink. 2020. Startup Ecosystem Rankings.
[18] WeAreSocial. 2020. Global Digital Overview.
[19] World Bank Group. 2020. Edtech in Indonesia: Ready for Take-Off.

DS/innovate is a Jakarta-based innovation
consultant and research firm.
We help companies and enterprises

connect to Indonesia’s startup ecosystem
through advisory, research, hackathons
and incubators/accelerator programs.
Engage with our team to discuss how
innovation ecosystem can benefit your
company both short and long term.
Contact us to know more:

bizdev@dailysocial.id

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Startup Report 2020

This report is downloaded by Andika Wiratama (23967).

Kemenparekraf/Baparekraf is one of the Ministries/Agencies that

This report is downloaded by Andika Wiratama (23967).

East Ventures is a pioneering sector-agnostic venture capital East Ventures is

East Ventures was named the most consistent top performing

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In 2020, we are shocked by the Covid-19 pandemic. Physical

This condition makes digital business even more interesting

There are several focused observations made in the “Startup

We hope that this document can be a reflection for stakeholders

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This report is downloaded by Andika Wiratama (23967).

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Not only the business dynamics at the growth-stage,

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Figure 2. Rankings 2020: Top 100 Emerging Ecosystems, Startup Gnome

Rank Ecosystems Country Region Factor Scores (1-10)

Performance Funding Market Reach Talent

#1 Mumbai India Asia-Pacific

#2 Jakarta Indonesia Asia-Pacific 10 10 10 9

#3 Zurich Switzerland Europe 9 10 10 8

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B. A Glimpse of Internet Penetration

Figure 3. Internet penetration in Indonesia, APJII

Internet user penetration 2019-2020 (Q2)

Indonesia Population 2019

196.7 million 266.9 million

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Figure 4. Digital consumer population in Southeast Asia, Bain & Company

203M 77M 75M 58M 25M 5M

Digital consumer population in 2019

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C. Digital Business Growth

Online Travel Online Media

Melissa Siska Juminto, Tokopedia Chief Operating

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Figure 6. Average top leader e-commerce website traffic, Similar Web

In 2019, the top 3 payment methods for e-com-

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“Our efforts to respond to consumers’ changing

Gojek has been at the forefront of ride-hailing in Indo-

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“The pandemic has presented challenges for all

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iv. Online Travel

“Throughout 2020, Traveloka has delivered various Albert

Dhiku Hadikusuma Wahab

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Figure 7. VOD content mapping for Indonesian market

Non-Exclusive Movies and Series

Sport Matchs Original Content

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Figure 8. The most promising edtech startups in Southeast Asia, Holon IQ

Language Learning Steam & Coding Education Financing

Skills & Jobs

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While edtech faced significant growth during the

It is clear that edtech has grown significantly since

Figure 9. Innovation in healthtech, Google, Temasek, Bain & Company

Patient Support (B2C/B2B) Healthcare Provider

• Health Information • Clinical Support • Smart Underwriting

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