Singapore-headquartered Ematic Solutions, a software firms helping marketers improve digital marketing channels, has raised nearly $1 million in pre-Series A funding.
The investment comes from MDI Ventures, a corporate venture capital initiative by Telkom Indonesia, Indonesia’s largest telecommunications services firms. This transaction brings total equity financing to US$2 million, including an earlier seed funding round and also sees its expand to Indonesia with a Jakarta office.
The Ematic Solutions’ Jakarta office will enable them to engage online retailers in Indonesia to increase the effectiveness and return on investment of their digital marketing efforts, in the midst of a rapidly growing market.
Indonesia’s population of over 250 million people represents a significant market, with a rapidly growing retail e-commerce market forecast to triple between 2014 to 2016, reaching $20.8 billion in capitalisation.
eMarketer has estimated that retail e-commerce in Indonesia grew 65.6 percent in 2015, the second fastest growing market in Asia-Pacific behind India.
Paul Tenney, the CEO and founder of Ematic Solutions, launched the firm in July 2013 in order to address the fundamental challenges associated with digital marketing in Southeast Asia. His first exposure to Southeast Asia was in 2010, when he landed in Singapore, his current residence.
According to a release, Indonesian e-commerce is expanding rapidly, with retail e-commerce sales expected to hit US$5.29 billion in 2016. E-commerce sales grew by 65.6 per cent in 2015. Indonesia has 73 million internet users, the largest population in Southeast Asia, and projected to maintain the fastest growth rate for internet penetration in Asia, at 17 per cent.
The funds will be used for talent acquisition and marketing in Indonesia. Commenting on the investment, Tenney said, “Indonesia has the largest internet population in Southeast Asia, which is set to grow at a blistering pace. There has been a huge pull for us from regional and local online retailers to be in Indonesia to help these retailers capitalise on this opportunity.”
Tenney added, “MDI Ventures’ investment and market insight will help us to rapidly expand our market reach. Leveraging Telkom Indonesia’s 150 million customer base and its vast network, I believe Ematic will achieve even greater growth. Our Jakarta office will be able to provide digitally-driven companies the tools to modernise how they reach their customers, with lower investment and higher return.”
Ematic Solutions has been working with e-commerce retailers in Indonesia since late 2015 and maintains a client portfolio in excess of 12 firms; luxury good e-commerce provider Luxola, fashion e-store Berrybenka and lifestyle marketplace Bobobobo are amongst the firms it services.
According to Tenney, email marketing remains a crucial channel for digital marketers in Indonesia, contributing between 25 to 35 per cent of total sales for Ematic’s client base.
He noted that with the need to efficiently reach out tom engage and convert customers to sustain growth, Ematic’s solutions offered greater manageability to the lean marketing teams operating in Southeast Asia.
The addition of an Indonesia team will provide local customers with in-market expertise, and campaign conceptualisation and management, supported by a team of technical specialists in Singapore, the United States and Europe.
Nicko Widjaja, CEO of MDI Ventures, said: “We believe that Ematic Solutions represents the future of adtech in Indonesia and Southeast Asia. The company, which specialises in building an email intelligence platform catered to Asian companies and marketers, can address the needs of the growing e-commerce market in Indonesia. By investing in Ematic Solutions, we are helping to build the digital marketing infrastructure in Indonesia.”