Indonesian startups flooded with investments from Japanese investors

Indonesia’s burgeoning GDP, as well as growing population and consumerism have been the main reasons for this trend

By Adrian Tjahjadi

Touchten, Tokopedia, Berrybenka, DapurMasak, PriceArea, UrbanIndo, Klik-eat, Bilna Adskom, Bukalapak, and most recently Sribu are some examples of startups that have received investment from Japanese investors. DailySocial, included, is one of them that received Series A funding from B Dash Ventures. This article aims to analyse this trend that started at the beginning of 2013 and does not show any signs of slowing down.

According to CyberAgent Ventures’ Takahiro Suzuki, Indonesia’s growing GDP, as well as the growing population and consumerism have been the main reasons for the aforementioned trend. However, despite the huge potential, the numbers can still be dwarfed by a similar rate in the more mature Japan market. This is the reason why many Japan-based companies prefer to invest, rather than build their own base of operations in Indonesia.

Similar opinion has been stated by Teruhide Sato, Group CEO, Netprice Japan, “Japan and Indonesia have a good relationship, making it easier for Japan-based companies to invest in the country.”

Also Read: Is foreign investment a no-go for e-commerce companies in Indonesia?

From founders’ point of view, this strategic investment will be very beneficial for them, as most of the Japanese investors have more experience in the industry. Thus, when they come to Indonesia to invest, they are not only investing their capital, but also their knowledge. “As founders, our main priority is to get capital. However, we realise that we also need guidance and mentorship in developing our business,” said Anton Soeharyo, CEO, Touchten, whose company recently received Series A funding from Cyber Agent Ventures.

Contrary to Japanese investors, most local Indonesian investors are not really interested in the online industry yet. As stated by Italo Gani, CEO, Adskom, whose company received funding from Rebright Partners, “Most Indonesian investors have not seen any potential yet in the internet industry.”

Ferry Tenka, CEO, Bilna supports Gani’s statement. He believes that only Japanese investors have confidence in the online industry of Indonesia. Although there are many foreign investors from other countries as well, most of them are Japan-based companies.

Translated from DailySocial

  • Berrybenka
    Berrybenka Indonesia is a leading online fashion store, based in Jakarta - Indonesia. They offer trending and fashion forward fashion items with good quality. Funding: 5M Series B Investors: GREE Ventures GREE Ventures
  • PriceArea
    PriceArea Indonesia is a search engine for local and online stores that connects shoppers with thousands of merchants -- Local & Retail Stores, Online Stores and Online Marketplaces. Funding: Undisclosed Series A Investors: Gree East Ventures
    URBANINDO Indonesia UrbanIndo is the leading web site that provides the latest and the best in the property market for either sale or rental throughout Indonesia. Funding: 2M Series A Investors: East Ventures East Ventures
  • Bilna
    Bilna Indonesia EASY & FUN WAY TO SHOP FOR YOUR BABY NEEDS. Get the best price on their wide range of baby products, with easy & secure payment, and fast & reliable shipping. Funding: Undisclosed Venture Round Investors: CyberAgent Ventures CyberAgent Ventures
  • DapurMasak
    DapurMasak Indonesia A social network to share cooking experience. They believe that cooking can bring happiness!
  • Bukalapak
    Bukalapak Indonesia is leading C2C marketplace ecommerce in Indonesia. It enables sellers and buyers to do secured online transaction in simple way. Funding: Undisclosed Series B Investors: Emtek Group
  • B Dash Ventures
    B Dash Ventures Japan B Dash Ventures does seed to late stage tech investments in Japan, Asia Pacific, and the U.S. LPs include Japan's largest technology companies and financial institutions including NTT Docomo. Funded Startups: QLL, WritePath, Gunosy, Gunosy, Gumi, e27, Pal+

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