Indonesia: Kresna acquires 17.6% stake in digital kiosk firm M Cash Integrasi

REUTERS/Dado Ruvic

Publicly-listed Kresna Graha Investama on Tuesday announced that its unit Kresna Usaha Kreative (KUK), also known as Kresna Creativeventures, has acquired a 17.6 per cent stake in digital kiosk firm M Cash Integrasi (MCI).

The value of the deal was undisclosed.

The collaboration with MCI is aimed to pave the way for Kresna to be “Indonesia’s digital distribution champion”, the company said in a statement.

“MCI business model suits with Kresna’s vision – To be the leader that accelerates the transformation of Indonesian society into digital lifestyle, by utilizing disruptive global technology excellence,” Suryandy Jahja, Managing Director of Kresna, said.

A last year’s report by Wellesley, Massachusetts-based BCC Research, predicted that the global market for self-service technologies will touch $59.2 billion in 2017, and further reach $83.5 billion by 2021 at a five-year compound annual growth rate of 8.9 per cent.

Moreover, the market for kiosks, the fastest-growing segment, is expected to touch $9 billion in 2017 and $17.2 billion by the end of the decade, the report said.

“We believe Indonesia will follow the trend as well, and we would like to be the leader in this digital lifestyle transformation. Through MCI, we want to complete distribution channels thus deepen market penetration of our digital products, from online to offline channels, and from modern to traditional and grass-root channels, making them available anytime anywhere to our customers, especially the millenials and the unbanked/underbank segments,” Jahja added.

Kresna has been on an acquisition spree since last year when it bought satellite services DNK, ticket booking platform Padiciti, and on-demand business performance app Kpisoft, among others. It also teamed up with Bank Mandiri to launch Mandiri e-cash (including LINE Pay e-cash), and with China’s Wecash Group .

Kresna’s latest venture, MCI, claims to be the first revolutionary digital kiosk in Indonesia. It has the capability to generate any physical cards, including mobile SIM (Subscriber Identity Module) and e-money, with automatic registration, in addition to other interesting features it provides, such as: phone credit top up, routine bill payment, mall/mart directory, advertisement (co-branding), voucher and promotions, flash sales points, e-commerce transactions and other digital products.

Martin Suharlie, CEO of MCI, said that the digital kiosk has gained more and more traction of late, not only owing to cost efficient solutions it offers, but also on the back of demand. A report by Harvard Business Review showed that self-service kiosks have made customers of modern retail stores spend more money.

“To MCI, digital kiosk is not a new business. We have seasoned team with proven track record (profitable) in this business. With the support of Kresna’s digital ecosystem and the launch of our latest generation digital kiosk, targeting 1,000 outlets in 2017 and to double by 2018, we are aiming to grow our revenue exponentially in years ahead, from Rp 490 billion in 2016 (unaudited). The end game for MCI is to become digital distribution champion in Indonesia,” he said.

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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.