KitaBeli, an Indonesian consumer-facing social commerce network, has raised an additional round of funding.
Co-founders of Meesho, an e-commerce platform located in India, as well as VC companies such as Indonesia’s Kopi Kenangan Capital and Banana Capital in the United States, took part.
KitaBeli intends to use the new money to extend its activities across the archipelago, as well as to boost its present presence in ten Indonesian cities, including Jakarta, Solo, and Malang.
Go Ventures led a $10 million Series A investment in which the company received the extension. KitaBeli also has East Ventures as a shareholder.
KitaBeli, founded by four co-founders in March 2020, is a smartphone app that allows users to purchase everyday necessities such as fast-moving consumer goods, fresh fruit, cosmetics, technology, and other home products.
The company improves on the “team-buying” concept, in which customers may get discounts and reduce costs by sharing information with their friends and neighbours.
KitaBeli’s approach blends the finest practices of Chinese e-commerce giant Pinduoduo’s group-buying network with the community leader ecosystem of fast-growing Chinese and Indian enterprises. Through its scalable user acquisition technique, it is able to achieve cost-effective expansion in rural Indonesia.
Unlike other social commerce models that rely on agents to sell in their communities, KitaBeli members may place orders directly on the site, which includes free shipping, same-day delivery, daily discounts, and 24-hour online assistance.
The business then uses its partner-based delivery network, in which members of the community earn commissions for delivering requested products last-mile.
KitaBeli announced that it has had strong growth in tier 2-4 cities across Indonesia and that it intends to overtake more well-capitalized competitors in the market.
According to Statista, the gross merchandise value (GMV) supplied on B2C marketplaces in Indonesia exceeded US $30 billion in 2020 and is anticipated to reach US$83 billion by 2025.
In addition, among the tiger cub economies, Thailand, Vietnam, Malaysia, the Philippines, and Indonesia, the nation had the highest e-commerce income last year.
In the archipelago, Shopee, Tokopedia, and Bukalapak together possess the greatest market share.