Meesho and Kitabeli’s bumpy social commerce hall

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The week of 20 September was a busy one for Indonesia’s social commerce startups. On Tuesday,

Dagangan


Dagangan

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Monk’s Hill Ventures leads US$11.5m Sequence A spherical for Indonesia’s DAGANGAN
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introduced a US$11.5 million Sequence A funding spherical. On Wednesday, Halal-focused

Evermos


Evermos

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Indonesian halal-focused social commerce startup Evermos lands $30M Sequence B
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mentioned it had raised a US$30 million Sequence B. And on Friday,

Kitabeli


Kitabeli

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revealed it had raised an undisclosed quantity in an extension of its US$10 million Sequence A spherical six months in the past.

That’s not less than US$41.5 million channelled to a few completely different social commerce startups inside 4 days. A kind of fundings was of specific curiosity due to the involvement of Vidit Aatrey and Sanjeev Barnwal, co-founders of Indian social commerce unicorn Meesho. They participated in 18-month-old Kitabeli’s Sequence A extension, together with funding companies Kopi Kenangan Capital and Banana Capital.

This Indonesia-India linkage is nothing new. Meesho, in actual fact, had entered Indonesia in 2019, however retreated after the pandemic hit final yr; it determined to concentrate on defending its house turf. The co-founders of Indian bookkeeping firm Khatabook and business-to-business (B2B) market Udaan have additionally invested of their Indonesian counterparts, BukuWarung and Ula, respectively.

The rationale why Indian firms and founders are investing in comparable companies in Indonesia is kind of apparent—an identical enterprise mannequin ought to result in an identical progress trajectory. Nevertheless, within the case of Meesho and Kitabeli, that’s not fairly the case. As a result of they observe completely different enterprise fashions.

Meesho, for probably the most half, has been serving resellers, whereas Kitabeli offers solely with end-consumers. (We’ve beforehand

written


written

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The various forks within the path to grow to be Indonesia’s first social commerce unicorn
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in regards to the completely different fashions of social commerce in Indonesia.) And for those who have a look at Indonesia’s social commerce sector, extra investments have been channelled into companies with the reseller mannequin—not less than US$78 million since final yr.

There are two causes for this. One, fairly merely, as a result of there are extra platforms following the reseller mannequin in Indonesia. It’s arguably a extra intuitive option to begin a social commerce startup within the nation, because it permits the gamers to faucet into 3.5 million

warungs


warungs

Warung
A small retailer, usually family-owned.

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