Fresh from a fund-raising and a key top deck hire, Indonesia’s e-commerce marketplace for used goods, Jualo, is targeting $300-million in revenues in a market where internet users are largely social media-driven.
Launched in January 2014, the customer to customer (C2C) marketplace claims to be the second largest marketplace for used goods in Indonesia. Jualo secured Series A investment, in the “multi-million dollar” bracket, in a round led by NSI Ventures with participation from existing investor Alpha JWC Ventures.
At the same time, it has appointed the founder of Tokobagus (now OLX Indonesia) Remco Lupker to take the e-commerce marketplace to pole position going forward.
Lupker started Tokobagus with Arnold Egg (now CTO at Lippo Group) in 2007 when the market had five established players. Under his direction, Tokobagus emerged the top brand for online shopping in 2012. That same year he exited the company.
In an interview with DEALSTREETASIA, Jualo founder Chaim Fetter says that he is optimistic about the growth potential of the company as well as Indonesia’s e-commerce story. “There are still many internet users who are only active in social media, and are yet to make transactions through marketplace,” Fetter says, about the challenging environment in the country.
Can you tell us about your journey so far?
I built Jualo with my childhood friends, who I know from elementary school. We used our own money from the beginning and put $150,000 into the project because we believed in it. In April last year, we sought our first investment from Mountain Kejora and Alpha JWC Ventures. Eight months later, we raised a series A funding from NSI Ventures and Alpha JWC Ventures.
What is your next step?
First, we want to create balance (reserves). We need to build our team and we are in the process of picking a CTO (chief technology officer). At this moment, we have 15 employees. We are using our marketing expenses very efficiently and mainly focussing on organic growth. We are looking to generate lot of traffic. The investment will finance talent acquisition and expansion to other regional countries such as the Philippines, Vietnam, Thailand and Malaysia.
What are your views on the prospects of e-commerce market?
In 5-7 years, there is no dominant player in the e-commerce marketplace. Almost 90 per cent Indonesian users use social media. To get them through social media and do a transaction using the e-commerce platform is the next step.
Do you have a target for this year?
Now, we have 2 million users per month. In January, our total sales through Jualo reached $15 million, from mostly cars, automobile and motorbike. Most of them do the transaction on the marketplace. We facilitate buyers and sellers to meet at the platform.
Is that true that you expect your sales to reach $200-300 million this year?
That’s our hope. Let see. Now, we generate sales of $15 million for month and it is going up every month.
What do you think about the government’s policies on e-commerce business?
I think it is really good and will have a positive effect on the economy because now foreigners can help build digital businesses in the country.
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