Indonesian social commerce platform TokoTalk has secured an investment of $3.2 million from Silicon Valley-based VC firm Altos Ventures, the startup said in a statement.
Powered by South Korean startup Codebrick, TokoTalk provides a chat-based e-commerce platform on social media networks such as Instagram and WhatsApp. In Indonesia, chat platforms are the preferred method for ordering online purchases.
TokoTalk allows buyers to view catalogues, pay for orders, receive order and shipping confirmation, while also providing customer service convenience for sellers through the use of chatbots.
Since it launched its platform in March 2018, TokoTalk claims that more than 100,000 online sellers have joined its platform and that it now facilitates transactions worth $10 million a year.
“The rise of the internet in Indonesia began with the smartphone era so that the Indonesian people are very attached to social media. Therefore, I am sure that social commerce will grow bigger in Southeast Asia, including Indonesia, Vietnam, and Thailand,” said Codebrick CEO Kyung-min Bang.
Indonesia has the fourth largest amount of Instagram users in the world. Of its total population of 270 million, 62 million Indonesians are Instagram users. Last year, the Indonesian Ministry of Finance announced that 64 per cent of all e-commerce transactions in the country occurred through social media channels, including Instagram, Facebook and Whatsapp.