Exclusive: Indonesia’s recommerce major Laku6 in talks to raise $3m Series A

Photo: Laku6 Facebook page

Indonesia-based used phone ecommerce site Laku6 is in discussions to raise up to $3 million by the beginning of fourth quarter of this calendar year. The firm has initiated discussions with multiple venture capital (VC) players, its founder told this portal.

In an exclusive chat with DEALSTREETASIA, Laku6 founder Alvin Yap said the company is banking big on a new offering and expecting to triple its revenue by the end of year.

After launching in July 2015, Laku6 had secured more than $1.8 million in seed funding, with Singapore-based Golden Gate Ventures (GGV) leading the investment. Andy Zain, managing director of local VC firm Mountain Kejora, was among the angel investors participating in the seed round. Other investors were Convergence Ventures, SkyStar Capital and Rocket Internet, who are also likely to participate in the Series A round.

Laku6 claims to be one of the largest used phone retailers in Indonesia and Thailand, offering 40 per cent lower price on phones with a 90-day warranty. The company claims to have sold more than 20,000 units till now, and expects to sell another 10,000 units by the end of the year.

The recommerce site now plans to launch a new offering in partnership with a financial services company. As per the new offering, users can buy a phone on instalments without a credit card. After paying six instalments, the phone can be traded for a new phone for half the price. This will help people save their remaining instalment and also get an upgraded phone.

DEALSTREETASIA also recently reported that Chinese giant JD.com was eyeing a business partnership with Laku6, clearly indicating the growing interest in this segment and the company.

Outside of China and India, Indonesia is the hottest e-commerce market in Asia; it is expected to grow from $8 billion in 2016 to $65 billion by 2020. The market has been abuzz with deal activity in the last few months.

PT Tokopedia, one of the country’s largest e-commerce players, on Thursday announced raising a $1.1 billion funding round that was led by China’s Alibaba Group. It was earlier the Chinese firm’s rival, Tencent-backed JD.com, that was reportedly in talks to invest hundreds of millions of dollars in the Indonesian firm.

In July, Indonesia’s largest travel e-commerce company Traveloka announced raising $500 million over two rounds of funding from American travel firm Expedia, China’s JD.com, East Ventures, Hillhouse Capital Group, and Sequoia Capital. That investment valued the online travel firm at $2 billion, an executive had told this portal on the condition of anonymity.

Also Read:

Indonesia: Alibaba leads $1.1b round in e-commerce major Tokopedia

Exclusive: JD.com eyes partnerships with Indonesia’s niche e-commerce players

Indonesia: Traveloka raises $500m from Expedia, East Ventures, JD, others

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.