KitaBeli, a consumer-facing social commerce platform based in Indonesia, has extended its Series A financing round.
Co-founders of India-based e-commerce platform Meesho and VC firms, including Indonesia’s Kopi Kenangan Capital and the US-based Banana Capital, also participated, reported Tech In Asia.
With the fresh funding, KitaBeli plans to expand its operations across the archipelago while strengthening its current presence in 10 cities in Indonesia, including Jakarta, Solo and Malang.
The extension follows its US$10 million Series A round led by Go Ventures. East Ventures is another investor in KitaBeli.
Launched in March 2020 by four co-founders, KitaBeli offers a mobile app that enables users to buy daily essentials, ranging from fast-moving consumer goods, fresh produce, beauty, electronics and other household items.
The startup optimises the “team-buying” model, where users can receive discounts and benefit from lower prices by sharing information with their friends and neighbours.
KitaBeli’s model combines the best practices of Chinese e-commerce Pinduoduo’s group-buying network and the community leader ecosystem of high-growth companies in China and India. It manages to drive cost-effective growth in rural Indonesia through its scalable user acquisition strategy.
Unlike other social commerce models that utilise agents to sell in their communities, KitaBeli’s users could place orders directly on its platform with free shipping, one-day delivery, daily deals and 24×7 online support.
The startup then leverages its partner-based delivery network, where individuals within the community earn commissions for performing last-mile delivery of ordered items.
KitaBeli sad it has witnessed robust growth in tier 2-4 cities across Indonesia and aims to leapfrog more capitalised players in the market.
In Indonesia, the gross merchandise value (GMV) sold through B2C marketplaces reached over US$30 billion in 2020 and is expected to reach US$ 83 billion by 2025, according to Statista.
Last year, the country also secured the largest e-commerce revenue among the tiger cub economies, including Thailand, Vietnam, Malaysia, the Philippines and Indonesia.
Shopee, Tokopedia, and Bukalapak together hold the largest market share in the archipelago.
Image Credit: KitaBeli
The post KitaBeli extends Series A round to further scale social commerce operations across Indonesia appeared first on e27.