5 Indonesian startups to watch in 2016

Photo credit: Leeta Luminate

No doubt, 2015 belonged to on-demand services and transportation startups. It was the year Go-Jek and GrabTaxi went into hyper-expansion mode. Both are likely still burning cash. But they’ve been successful in another sense: establishing new consumer habits and expectations.

They firmly planted the idea that apps can be used for much more than chatting, link-sharing, and playing games. Smartphones across the archipelago are becoming the primary interface for transacting with the world.

In 2016, up-and-coming startups can ride on this wave of digital euphoria. While Go-Jek addresses daily needs such as transportation and food, I believe startups that tackle more niche needs stand a chance to grow big in the coming year.

Here’s my pick of the litter: five Indonesian startups I believe will become major players in their respective fields in 2016.

Edtech: Ruangguru

Indonesia’s education system is, regretably, one of the worst in the world. Indonesian students tend to rank low in literacy, test results, and graduation rates when compared to other nations. Reforming a flawed education system takes years, and it’s likely parents won’t wait that long.

They will seek out alternatives to educate their offspring—with the ASEAN economic union around the corner, pressure is mounting to stay competitive. Indonesia’s growing middle class will invest in education, and parents are used to paying for private tutors or classes to make up for what their children miss out on in school.

This is where Ruangguru comes in. The edtech startup has come a long way since it launched in April 2014. Its initial premise was to connect tutors with students, but it has grown into a comprehensive portal for online and offline courses as well as online test preparation.

Funding-wise, the startup is more than ready to rumble in 2016. It raised a seed round in 2014, and just raked in a “seven-digit” series A funding round from Venturra Capital.

There are competitors to Ruangguru in Indonesia’s edtech space. For example, there’s Kelase which offers online courses and adds a social networking aspect. There’s also Bulletinboard, which connects teachers with parents.

But Ruangguru has the broadest range of products and sends a singular message to parents: “Here’s how your kids can get good grades.” Some may not like the idea of paying for good grades, but I think this simplified messaging can help Ruangguru break through to the mainstream education market.

Assisted ecommerce: Kudo

Female ecommerce: Moxy

Agriculture tech: Cybreed

Digital content: IDNtimes