03 | Google and Microsoft make major funding bets in Indonesia tech
Welcome to Growjek #3!
This issue the big news is major funding bets by Microsoft and Google in Indonesian tech, part of the ongoing battle between China, India and the US for control of ASEAN’s digital future.
If you have content or a story you think is a good fit for the newsletter, just let me know — I’m more than happy to help. You can email me on growjek@substack.com.
Until next time, Tom
INDONESIA
Microsoft has agreed a US$100 million investment in Indonesian online marketplace Bukalapak. Microsoft, plus existing backers GIC and Emtek Group, are investing at a valuation of between US$2.5 billion and US$3 billion. link
Google and Temasek Holdings have agreed to invest US$350 million in Tokopedia, a major cash infusion that will bankroll the Indonesian online mall’s post-Covid-19 expansion. link
Big news as Indonesia's economy shrinks year-on-year in Q3 2020, suffering it’s first recession in over 20 years since the Asian Financial Crisis. link
Overall fundraising by Indonesian startups in pandemic-hit 2020 is poised to fall by nearly a third from last year. link
However, despite the headwinds, US$1.9 billion in funding WAS raised in Q3 2020, dominated by 3 verticals: Fintech, edutech, and SaaS. link
The latest move in an ongoing flirtation between two major Indonesian tech giants is that Telkomsel might consider buying Gojek convertible debt. If they ask nicely. link
Indonesia is shaping up as SEA’s next digital payments’ battleground. Wasn’t that Vietnam last week? Anyway, with a fragmented marketplace of vendors, the real opportunity lies in consolidation. link
How Indonesia’s plan to battle illegal phone sales backfired. link
The recent opening of a Reciprocal Green Lane travel arrangement between Singapore and Indonesia is part of a broader effort to restore bilateral travel. link (Although anyone looking to travel from Singapore is still subject to a painful 14 day SHN on return.)
Lazada co-founder’s advice to entrepreneurs: Try not to crack Indonesia first. link
Here are the most active investors in Indonesia’s startups. link
Indonesia’s street-side eateries to become the next sector to digitize. link
No end in sight for Korean Wave in Indonesia. Like the Royal Wave but for K-pop Stans. link
BRI has a US$250 million fund that it plans to allocate toward the development of initiatives that can create real value for the nation’s residents. link
Regulations on the establishment of Indonesia's first Sovereign Wealth Fund will be ready in a few weeks. link
Andalin, a logistics startup which works with B2B shippers in Indonesia, has raised an undisclosed “seven-digit investment” in pre-Series A round, led by Singapore-based VC firm Beenext. This brings its total investment raised to date to US$1.5 million. link
Indonesian logistics platform Logisly raises US$6 million Series A to digitize truck shipments. link
Indonesian travel tech company Tiket records spike in sales despite pandemic. link
Singapore-based SpaceDC, announced today that it has opened its inaugural data center facility in Jakarta. link
Indonesian fintech Cermati reports a data breach with 2.9 million users affected. link
Newzoo has partnered with Indonesia-based esports organisation EVOS Esports to conduct market research and analysis of ASEAN gaming. link
Public Voting is now open for the Indonesia Gaming Awards 2020. link
Indonesian startup QIue have been included in the initial 18 startups that will be part of the smart city initiative SmartCityX inaugural global innovation programme. link
Sea Group's ShopeePay aims for e-payments glory via food delivery. link
Jobs marketplace AdaKerja bags $1m in seed round from Beenext. link
Openspace Ventures has joined Mandiri Capital in leading the Series A funding round in Indonesian omni-channel sales SaaS startup iSeller. link
UMG IdeaLab, the Indonesia-based corporate VC arm of UMG Group Myanmar, announced that it has poured an undisclosed amount of seed funding into the influencer-focused marketing platform SociaBuzz. link
Ooredoo and Huawei plan to build Asia Pacific's first 5G-Ready transport network in some key areas in Indonesia, including Greater Jakarta, East Java, and Bali. link
An AI-based forest-monitoring project is set to go ahead at the West Bali National Park in Buleleng regency, Bali. link
OTHER ASEAN
Everyone talks about a proxy tech war being played out by American and Chinese technology giants in Southeast Asia. This talk has picked up significantly since trade and geo-political tensions have escalated. Today, however, there’s another emerging influence in Southeast Asia – the quiet, steady, but surely increasing impact of Indian technology startups. link
Vietnam leads Asia-Pacific in pace of digital progress. link
Malls were one of the biggest casualties of the pandemic, with a 90% drop in footfall during lockdowns in Southeast Asia. Now, they’re changing their ways of doing business and getting comfortable with online shopping in order to remain relevant. link
Thailand's e-sports market is expected to reach ~US$1 billion in value next year, up 10% from ~US$900 million this year, although growth remains smaller relative to other key ASEAN markets as gaming in Thailand is perceived negatively among members of the public. link
In celebration of the League of Legends: Wild Rift launch, Riot Games created a short film featuring some of the top gaming creators in Southeast Asia, as an ode to players in the region, featuring a cameo from Indonesia’s Jess No Limit. link
Shares in Nanofilm Technologies closed 12% higher on their debut on Friday after the company raised up to US$375 million in the biggest IPO on the Singapore bourse in eight years. Nanofilm provides coating materials for smartphones and televisions. link
Genshin Impact rakes in USD 250 million in its first month, outpacing Honor of Kings and PUBG Mobile to become the top-grossing mobile game worldwide the last month. link
Whoever wins the US election, the true winner will be the Southeast Asian tech startup ecosystem. ASEAN has been an investor favourite in the past years. Even a pandemic does not change that. link
Brands are expected to head into the Singles’ Day e-commerce event on Nov 11 on a surge of regional consumer interest, judging from the trend in recent months. That’s as “Double Days” sales, such as 9.9 or 10.10, have been a buzz for South-east Asian retailers. link
Vietnamese unicorn VNG is betting big on ASEAN as it carves out regional expansion plans. link
Accelerating Asia plans to launch a new 'up to US$50M fund' in Q1 2021. The accelerator-cum-VC fund is also expanding into new geographies in Asia, including India, Bangladesh and Sri Lanka. link
Nike jumps on Lazada marketplace to cater to unique tastes of SEA consumers. link