Evoucher, an Indonesian daily deals provider, has secured an undisclosed amount of pre-Series A funding round from Value in Technology Indonesia (VITI). Having bootstrapped for the past five years, the funding represents its first external investment.
VITI, is a gaming firm based in South Korea with more than 15 years of experiences in the Asia Pacific (APAC) game industry.
The funds will be used for business development, as well as for the creation of infrastructure to enable the execution of business strategy. This is in addition to customer acquisition.
Evoucher claimed that since its launch it has distributed vouchers for over 960,000 products. This distribution was via its website and mobile app.
The investment may be suggestive of larger trends,with South Koreans being among the most numerous expatriate workers in Indonesia. According to Erni C Westi, a language teacher at the University of Indonesia’s language centre “When Koreans come, they usually move here with their whole family. If the husband has business here, his wife comes and his kids come, too. And all of them study Indonesian.”
This reflects the increasing footprint of South Korean firms in Indonesia, as well as greater tendency for South Koreans to migrate to business destinations in the long run.
The Technology, Media & Telecommunications (TMT) market presents compelling investment opportunities within Indonesia.
South Korean foreign direct investment (FDI) in Indonesia has risen from $330 million in 2010 to $2.2 billion in 2013, representing an increased in excess of 660 percent in a three years window. This indicates the strong confidence that South Korean businesses have in the Indonesian market.
Currently, more than 68,000 foreigners work in Indonesia, with its $900 billion economy being among fastest-growing economies in the world. South Koreans account for 8,000, or 11 per cent, of the expatriates in Indonesia, with mainland Chinese making up the majority at 16,000 nationals and Japanese worker ranked second, numbering nearly 11,000.
Incidentally, the administration of President Joko Widodo has targeted these countries as prospective investors in the Indonesian infrastructure market. Many of the latest entrants are seeking to leverage on the growth of the emerging Indonesian middle class and there increased consumption and demands.
In certain ways, the economic rise of Indonesia seems to mirror the economic development of South Korea itself. With the increased FDI, we may see the beginnings of increased capital flows from one of Northeast Asia’s most developed economies into Indonesia, capitalising on its favourable demographics and strong growth prospects.