Original Post by Deal Street Asia
Indonesian social commerce platform KitaBeli has secured $10 million in the Series A funding, led by Go-Ventures, with participation from existing investors, AC Ventures and East Ventures.
Through the KitaBeli mobile app, users can share product price information with their social circle, and build teams to purchase desired items at competitive prices. Over time, the platform aims to connect suppliers and farmers to tens of millions of consumers in Tier 2-4 cities across Indonesia.
“We launched KitaBeli in Jakarta in March 2020, and have expanded to Solo and Malang – both Tier 2 cities in Indonesia, where we’ve seen strong growth. We shall be using the funds from this round to expand operations deeper into Java and to develope a secure and efficient logistics network. On the product side, we shall focus on building a more interactive and user-friendly, mobile-first shopping experience for our customers,” said Kitabeli CEO and co- founder Prateek Chaturvedi said in the statement.
Unlike other social commerce models that utilise agents to sell in their communities, KitaBeli’s users place orders directly on the platform. The firm will continue to deepen its direct consumer relationships going forward.
Since its launch, KitaBeli claims to have seen over 80% month-on-month growth, with a low cost per install rate at $0.10. Meanwhile, the users spend an average of $70 per month on the platform. This translates to a wallet share of 35% in the product categories available on KitaBeli.
KitaBeli has implemented a partner-based delivery network, where individuals within the community earn commissions for performing last-mile delivery of ordered items.
“E-commerce penetration beyond the large metros has remained low, predominantly because of lack of trust, poor product availability, and high logistics costs. Kitabeli is well-positioned to address these challenges through the social nature of its product, accelerating online shopping for a new generation of users and bringing the benefits of e-commerce to a wider population across Indonesia,” said Aditya Kumar, SVP of Investments, Go-Ventures said.
The social commerce sector in the region is seeing a lot of deal traction. Rates landed an undisclosed amount fund in Series A round, led by Vertex Ventures SEA and Genesis Alternative Ventures, while Singapore-based social commerce startup Raena raised $9 million in a Series A funding round, co-led by Alpha Wave Incubation and Alpha JWC Ventures.