Indonesian super app unicorn Gojek, in an effort to help the country combat the spread of the COVID-19 pandemic, has recently acquired permission from Indonesia’s Healthy Ministry and its National Disaster Mitigation Agency (BNPB) to bring in approximately 5 million face masks, which are to be allocated among the nation’s frontline healthcare providers and its driver-partners.
The latest shipment of masks will help to reinforce Gojek’s existing supply of health supplements, hand sanitizers and face masks for its fleet of driver-partners throughout more than eighty cities across the island archipelago nation.
The latest move by Gojek underscores the commitment and dedication that the unicorn company has towards maintaining the safety and well-being of its more than 3,000 employees and a fleet of 1 million drivers, and follows a previous move by the local ride-hailing super app’s senior management of cutting their salaries in order to allot more than US$6.9 million to their workers and driver-partners to deal with the uncertainties and economic upheaval caused by the COVID-19 pandemic.
According to Kevin Aluwi, co-chief executive officer of Gojek, the company strives to look after the welfare of their fleet of drivers and wishes to lighten their burden and help them feel more at ease about their future and day-to-day living during this time of economic uncertainty as a result of the outbreak.
Towards this end, drivers who fall ill due to the coronavirus or who become patients under treatment (PDP) are able to receive financial assistance from not just the unicorn company itself, but also Yayasan Anak Bangsa Kita, its newly formed charity foundation aimed at supporting the financial stability of its fleet of drivers and other partners.
According to a report, Gojek has experienced a more than 10 percent drop among its active ride-hailing users due to the COVID-19 pandemic within the end of March alone.
The distribution of face masks to its driver-partners and the country’s healthcare providers is just one step among many other measures that the unicorn company is adopting to help its employees and partners to combat the spread of the coronavirus and to ensure their safety and well-being.
Besides relaxing vehicle loan repayment requirements for its fleet of driver-partners, Gojek has also provided vouchers to younger drivers to look after their basic needs, while distributing basic necessities and staple goods to older and senior drivers aged more than sixty years old, in order for them to cope with the economic downturn as a result of the coronavirus outbreak.
Garibaldi Thohir, the independent commissioner of Gojek, recently announced that the latest import of face masks for its fleet of drivers is an important measure to make sure that the country’s supply of locally made masks and other medical gear is more than enough for the nation’s frontline healthcare providers and hospitals. The import of masks is a necessary precaution to prevent the spread of COVID-19 as drivers are more at risk of contracting the coronavirus due to their daily interactions of making deliveries to many people.
The super app unicorn Gojek is taking proactive measures to ensure that the welfare of its fleet of driver-partners, both young and old, are well taken care of. As the homegrown company has shown, even in times of crisis the well-being and health of normal employees and workers should not be neglected.
Vietnam-based Lozi, a rapidly expanding technology startup that operates two flagship apps Lozi and Loship, is fast gaining traction among global investors and is one of the country’s many potential tech startups that is primed for achieving unicorn status.
Established in 2014, the startup has since then undergone several rounds of funding. It had previously received investments from Golden Gate Ventures and DesignOne Japan for a seven-digit funding.
More recently, its Series B funding round in 2019, which was led by South Korea-based venture capital firm Smilegate Investment, landed a handsome eight-digit funding for the ambitious startup. Investors that have participated in Lozi’s funding rounds over the years include JC Capital, Ascendo Ventures, DTNI, and Hana Financial Group.
Trung Nguyen, chief executive officer and co-founder at Lozi, said that one of the startup’s key defining features are its one-hour delivery services, which not many in the market are capable of doing. Being an intracity e-commerce platform, the company is focused on providing speedy delivery of products from local merchants directly to customers via its fleet of on-demand drivers.
Nguyen believes that its fast and efficient delivery services, which the startup considers as a competitive advantage, will be the primary driver of profitability and growth since an increasing number of consumers nowadays want fast and on-demand delivery choices. Therefore, the companies that can provide the fastest delivery times will come out on top.
Nguyen also shared that the e-commerce startup’s growth rate can be said to be comparable to those of larger companies and businesses with several times more capital and investment than they do. He believes that one of the main reasons why global investors such as Golden Gate Ventures and Hana Financial Group have decided to support and invest in the startup is because Lozi is creating value for them through their profit-driven business model.
The chief executive officer of Lozi further added that, other than the participation of renowned investors, the startup also managed to get the support of prominent individuals from Silicon Valley, as well as the backing of strategic consultants from Australia with deep experience in the banking industry. Hence, Nguyen is confident that Lozi has the required investment and necessary support to drive the company’s growth from being a local startup to becoming a regional unicorn with a valuation of over US$1 billion.
On what strategies the e-commerce startup would employ to achieve unicorn status, Nguyen said that the key to driving long term sustainable growth is by investing and leveraging on new verticals for a faster rate of expansion. Lozi is looking to go beyond its grocery and food delivery services with Lo-supply, a delivery service in the retail supply chain space with the aim of securing its position there. The co-founder of Lozi explained that the focus on Lo-supply is timely as it will enable the startup to capitalize on the explosive growth of Vietnam’s retail supply chain space and expand in this sector further. Moving forward, Lo-supply may become an indispensable driver of profitability and growth for the company’s business.
Presently, the aspiring unicorn Lozi employs a fleet of more than fifty thousand drivers and counts around two hundred thousand merchants on its e-commerce platform, serving the needs of more than one million five hundred thousand consumers in Vietnam with more than sixty thousand transactions daily. The startup expects to generate around US$31 million in revenue for the year 2020.
Kickstart Ventures, a Makati City-based venture capital firm that is one of the Philippines’ most active with investments in Coins.ph, Zalora, C88, Wattpad and Singapore-based video publishing platform iVideoSmart, announced recently that it is on the hunt for promising tech startups in the region as it seeks to leverage its US$200 million funds.
The fund is intended to develop and grow the next generation of technology unicorns within Southeast Asia, as well as to nurture the growth of innovative startups and companies to become the region’s leading industry movers and shakers.
The venture capital company, which is a subsidiary of Globe Telecom, was established in 2014 with just an initial US$2.4 million seed fund but has since grown to assist more than 40 startups and companies worldwide to achieve success, with 30 of those companies and startups being Filippino ones.
At present, Kickstart Ventures is looking to invest in startups that are in the emerging technology and technology-reliant sectors, such as Internet of Things (IoT), artificial intelligence (AI), machine learning, sustainability practices, fintech and payments, enterprise solutions, logistics, e-commerce, cloud computing, data analytics and augmented reality.
In 2019, Kickstart Ventures was given a mandate by Ayala Corp, a major shareholder of Globe, to manage a US$150 million fund that the holding company had designated for venture capital purposes, with an emphasis on companies and startups that can drive scalable, sustainable and innovative solutions in the technology space, including areas such as emerging technology, financial technology, transportation, machine learning, customer service, IoT, cloud computing and more. The fund, known as the Ayala Corp.
Technology Innovation Venture or ACTIVE Fund is geared towards backing startups in their Series A, B and C phases of funding from around the world, revolving around the concepts of smart living, frictionless future, a world of plenty and automation to augmentation. It is understood that each company would receive between US$2 million US$10 million in investment. The venture capital firm will target to make its first initial investment in a startup or company by the middle of 2020.
According to Joan Yao, vice president for investments at Kickstart Ventures, the venture capital company is very interested in seeing more local Filippino startups and companies take the initiative in developing innovative solutions that go beyond just the Philippines to address the needs of Southeast Asia’s immense population of more than 655 million people. Additionally, Yao added that the ACTIVE Fund is also looking at investing in solutions themed around sustainability practices such as waste management, energy management and water management, such as water purification and energy storage solutions.
On the potential of local Filippino startups to achieve unicorn status, Yao is of the opinion that much depends on how swiftly the Philippines are at mass adopting digital technologies. There is still a need for the country to build a sustainable and viable digital economy that is focused on the inclusion of its people so that more of them will become involved and participate in digital and online transactions to boost the ecosystem. In addition, local startups will need to broaden their horizons and look beyond the Philippines and expand to new regional markets if they wish to become unicorns.
Indonesia is fast becoming the land of unicorns for the region of Southeast Asia. JD.id, a subsidiary of Chinese e-commerce giant JD.com that operates an e-commerce platform in Indonesia, has recently confirmed to an Indonesian news portal that the company’s current valuation has surpassed US$1 billion, which makes it the sixth company to achieve unicorn status in the country.
With the latest valuation, JD.id will join other Indonesian luminaries such as Tokopedia, Gojek, Bukalapak, Ovo and Traveloka in the country’s unicorn ranks. Of particular note is that with the latest addition of JD.ID to its unicorn ranks, Indonesia now has three unicorn companies that operate in the e-commerce space – Tokopedia, Bukalapak, and JD.id.
Even though the e-commerce company JD.id did confirm that its valuation has now exceeded US$1 billion, it did not disclose any other specific details such as its exact valuation or the funding sum acquired to cross the US$1 billion valuation mark. It is understood that multiple entities were involved in the company’s latest financing, with some speculating since last year that fellow Indonesian unicorn Gojek was one of the parties that funded the company. When reached for comment about the matter from a news source, JD.id declined to confirm the speculation that Gojek had funded the company.
According to news sources, Gojek had announced in February of 2019 that the super app unicorn company is continuing its strategic partnership with Chinese e-commerce giant JD.com in Indonesia through a joint venture with JD.id. The joint venture will see the seamless integration of both services, which will enable consumers and users to directly access JD.ID products on Gojek’s platform.
Jakarta-based JD.id was launched in Indonesia in November 2015 as a result of a strategic collaboration between Provident Capital, an Indonesian conglomerate-affiliated regional investment firm, and JD.com. The company currently operates across more than 350 Indonesian cities, providing delivery services for a myriad range of products which include electronic devices, household appliances, clothing, fashion accessories, and sports products.
According to JD.id, the company’s mission is to provide dependable, safe, and efficient customer experience by offering original, high quality and reliable products at affordable prices. Complemented by its vast network of partners spread across the islands of Indonesia and its own fleet of logistics, the newly minted unicorn company seeks to bring the online shopping experience to more consumers across the vast island nation. The e-commerce unicorn currently boasts more than 20 million users on its platform and is aiming to become Indonesia’s most trusted e-commerce company.
According to a regional report, the e-commerce market share in Indonesia is forecasted to grow to almost US$80 billion by the year 2025, which represents an almost four-fold increase from its US$21 billion e-commerce market share in 2019. The new unicorn JD.id will also have to contend with other regional powerhouses such as Lazada, Shopee, and fellow Indonesian e-commerce unicorns Bukalapak and Tokopedia in the competitive e-commerce space. While other e-commerce giants are focusing on establishing partnerships, JD.id is focusing on fortifying its logistics, namely its same-day delivery service, in order to distinguish itself in the crowded market.
Gojek, the first Indonesian unicorn superapp company that is now a decacorn company with a valuation of over US$10 billion, welcomed its third batch of startups that were chosen from the local retail sector for the third iteration of its Gojek Xcelerate startup acceleration program.
Aimed at fostering more unicorns among Indonesia’s promising startups to create a more lasting social impact, the accelerator program is done in collaboration with world-class startup accelerator Digitaraya, a startup accelerator that is also aimed at growing Indonesia’s startup ecosystem.
Besides Digitaraya, the nine startups that were selected for the latest edition of the accelerator program can also leverage the experience and knowledge of leading experts from UBS Bank, Google, and McKinsey.
According to the unicorn company Gojek, the latest batch of startups were chosen based on the fact that consumer tastes and behavior are rapidly evolving, as consumers increasingly attempt to find more ways and means of purchasing services and products that can afford them more convenience and speed.
The Gojek Xcelerate program will help these promising local retail startups to learn how to adapt and thrive in a competitive environment and keep pace with consumer tastes and behavior that are constantly evolving while enabling them to leverage on Gojek’s vast network of merchants, investors, and users.
The third batch of local startups include:
The Indonesian unicorn Gojek hopes that these nine promising retail startups will take the opportunity afforded by its Gojek Xcelerate program to fine-tune their approach in analyzing consumer behavior to come up with appropriate solutions for overcoming challenges such as consumer trust and market acceptance. The unicorn company also emphasized that it is vital for the startups to maintain sustainability even as they seek to accelerate their growth.