On Monday, Indonesian e-commerce startup Kudo has raised ‘seven-digit’ funding in a round led by GREE Ventures and East Ventures. It also includes other investors like 500 Startups and Singapore-based IMJ Investment Partners.
Jakarta-based startup Kudo is an online-to-offline (O2O) technology that targets the middle class or non-tech savvy crowd who are not very familiar with online transaction. The company has physical e-commerce kiosks that accepts payments in various forms even cash. The kudos are then place in spots at public places and helps those who do not use estore. Their business plan revolves around bringing e-commerce for the hard-to-reach clients via its mediators who are using the digital kiosk.
Last December, the company piloted its program that help shopper in that area to make online purchases without credit card via digital kiosks, which GREE’s CEO Kuan Hsu described as ‘wildly successful.’ According to him, the startup “accelerates the growth of online transactions in Indonesia by providing a platform to bridge the gap between the digital e-commerce space and offline retail space.”
Apart from shopping online through the kiosks, people can also top-ups for their mobile phones and also buy tickets for bus and train. This startup aims to bridge the gap between the non-tech-savvy people and the process of transacting online. It enables them to do online transactions without directly involving them. COO and Co-founder Agung Nugroho said that approximately 70% of its current customers are buying something online for the first time and around 40% of them keep coming back to them. “The market demand for our service is very clear and now it the time to scale,” said Nugroho.
Kudo is looking forward to use the recently raised fund to widen the business regionally and is working on the target to reach 1000 agents in the coming months. The previous funding for the company was raised in 2014 and the seed funding was from East Ventures. For the investor East Ventures, this round funding makes its third funding round in less than a month. Apart from Kudo, East Ventures has also funded Otten Coffee, online store for coffee products, in the company’s Series A funding.
The managing partner and co-founder of East Ventures Wilson Cuaca said, “Albert Lucius (CEO and co-founder) and Agung Nugroho has been showing determination to address the 81.4% unbanked population in Indonesia. Only 19.6% of Indonesia people have access to bank and financial product according to World Bank Global Financial Index, which is the lowest in South East Asia after Vietnam at 21.4%. The opportunity is humongous.”
The mediators or the agents working with Kudo get a regular income and an additional 25% as an incentive based on their sales. Also, they are given training to improve their productivity and sales. In just three months since its launch, the company takes care more than 600 transactions per day and is aim to hit around 8000 per day in the coming three to six months.