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.