How this firm empowers Shariah-compliant Indonesian brands

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During my last visit home to Ireland, the sight of an Amazon delivery van outside my parents’ house blew my mind. They live down a middle-of-nowhere lane deep in the countryside, and I thought it was beyond the reach of same-day delivery and all the other bells and whistles of modern ecommerce.

I suspect plenty of people in smaller cities in Indonesia feel the same sense of confused amazement when companies like Evermos start showing up in their areas. The social commerce platform is targeting a large niche in the country by bringing Shariah-compliant products to lower-tier cities.

Today’s featured story looks at whether Evermos can turn its promise into profitability in the face of some sticky growth challenges.

Today we look at:

• How Evermos helps Shariah-compliant brands reach lower-tier cities
• The recruitment chatbot startup that’s doubling down on Indonesia
• Other newsy highlights such as a US$40 million fund for climate-oriented startups and Circles Life denying reports of a leadership change

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Lower-tier, high potential

Image credit: Timmy Loen

To bring Shariah-compliant products outside top-tier cities, Bandung-based Evermos is working with small businesses that typically struggle to ship nationwide.

While Indonesia’s market for Shariah-compliant goods will be worth US$282 billion by 2025, questions remain about whether the company’s reseller model can bring profit.

• Low barrier to entry: Merchants that join Evermos can start selling without an upfront investment by sharing catalog links with potential consumers. The products are dropshipped, allowing small retailers to operate without holding inventory.
• Pandemic boost: During the Covid-19 pandemic, the firm experienced a 20% bump in its number of resellers per month. A large proportion of sellers on the platform are high school-educated women and Evermos’ leaders believe the platform gives these women a rare opportunity to improve their economic position.
• Profit on the horizon?: Evermos has yet to hit profitability as it takes on established competitors in lower-tier cities like small shops and supermarkets. In addition, high logistics costs and some resellers’ reluctance to grow their businesses are hurdles for the firm to overcome.

Read more: How Evermos helps Shariah-compliant brands reach lower-tier cities through social commerce

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