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Hello reader,
The cool thing about working in a company that covers news across a diverse region – and employs a similarly multicultural workforce – is that I get to learn interesting things about Southeast Asia almost every day.
I learn about Filipino culture from copyediting lead Eileen (who’s likely editing this very passage as we speak); Bahasa Indonesian slang from Susi, my comrade in the creative team; and insights into the Malaysian tech scene from newsroom colleague Emmanuel, mainly via his weekly Dan Lain-Lain column.
Today’s premium piece – by another newsroom colleague, Jofie – is about an Indonesian startup called Mapan that has digitalized the concept of arisan, a family tradition that encourages saving money and familial bonding. Read on to find out more.
Today we look at:
- How this startup is bringing the traditional concept of arisan into the digital age
- Tencent running into some revenue stagnation
- Other newsy highlights such as Ola Electric’s plans to raise US$300 million and the over US$1 billion investment haul of startups in the Philippines
Premium summary
Does digitalizing culture in this way make sense?
Image credit: Timmy Loen
After reading Jofie’s article, I’m encouraged by the sheer size of Indonesia and its population. Why? Because arisan involves friends and family pooling money together, I think Mapan should keep offering essential goods on its catalog and never get too big-ticket, lest it results in close relations falling out.
Of course, sticking to small-ticket items could affect Mapan’s revenue, which comes from marking up the sold products. But given how sizable the Indonesian market is, this could still lead to a win-win situation for the startup and its users.
- Owner to investor: Mapan was acquired by Gojek in 2017, but after raising US$15 million in a series A round led by Patamar Capital and Astra Digital Internasional in June 2022, the startup has regained independent status.
- How it works: Unlike the common arisan model, in which users pay a nominal sum for a chance to win money, Mapan’s users contribute an “installment” payment each month for the duration of the arisan – which can range from a few months to a year – and stand to win products at the monthly draw.
- The key demographic: The firm’s target users are the middle- to lower-income segment. These users spend between US$80 to US$230 a month, struggle to use digital payments to purchase products via online platforms, and cannot afford to pay for goods upfront in cash.
Read more: This Indonesian social commerce firm digitalized ‘arisan’ and grew revenue 3x
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