Indonesia: Elevenia raises $50m from XL Axiata, SK Planet

CEO Elevenia James Lee - Photo by Elevania

Online e-commerce portal Elevenia has raised $50 million in its latest funding round led by Indonesia’s second largest mobile operator PT XL Axiata Tbk, with participation from SK Planet — a subsidiary of South Korea’s largest mobile carrier SK Telecom.

The total amount of investment in Elevenia to date stands at approximately $110 million. The company had earlier received two rounds of funding – $36.6 million in 2014 and $12 million in January 2015.

According to Elevenia CEO, James Lee, Elevenia managed to wrap up the transaction value of Rp1.3 trillion ($92.93 million) last year. “Given our success last year, our investors re-added investment at the beginning of this year, totaling $ 50 million dollars. This additional investment is proof that the share holder we are very serious in working on e-commerce market of Indonesia, through elevenia,” he added.

Funds from the latest round have been allocated to marketing activities, development of platforms, services and products, in order to more optimally serve customer and the seller.

The new investment will also be used to develop human resources and a new office for the company.

“We do not stop innovating to continuously provide the best not only for consumers, but also for partner sellers who have been giving us their confidence, as one player in the world of e-commerce Indonesia,” added the company official.

At the beginning of this year, Elevenia has had an average of 20,000 transactions per day and 2 million registered members, he informed.

First launched in Indonesia in 2013, Elevenia is a joint venture between XL Axiata and SK Planet. The partnership enables the e-commerce platform to leverage XL Axiata user base of around 48 million.

Meanwhile, XL Axiata has set up a business solutions platform, DigiBiz, to help small and medium enterprises (SMEs) strengthen their marketing initiatives and grow their businesses. The company is planning to invest up to Rp500 billion over the next three years to develop the new platform.

DigiBiz platform is a mobile app that aims to enable SMEs to share information about their products and use it as a financial and marketing tool.

Director of Digital Service Ongki Kurniawan said, in a company statement, XL Axiata is targeting a market of 20,000 SMEs for its DigiBiz solution by the end of 2016. He added, the company was partnering banks to help prepare financial digital solutions for SMEs.

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