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On the surface, India and Indonesia seem pretty alike. They’re both emerging economies with similar demographics, purchasing power, geographical diversity, and small mom and pop shops (warung and kirana stores) that power much of everyday life.
But it appears that this may be where the similarities end. Given Indonesia’s size and market potential, it’s no surprise that major Indian unicorns have made forays into the archipelago. However, it seems like these efforts may not have borne fruit.
Today we look at:
- Why Indian unicorns don’t seem to be finding success in Indonesia
- This neobank that just bagged fresh funding
- Other newsy highlights such as this beauty startup’s IPO plans and a company that’s banking on stool samples to address gut disorders
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From India to Indonesia – or maybe not
Image credit: Timmy Loen
Several notable Indian firms – food delivery major Zomato, social commerce platform Meesho, and, most recently, gaming and esports unicorn Mobile Premier League – have exited Indonesia, after their expansion plans did not bear fruit. And they’re just the tip of the iceberg when it comes to Indian tech firms that haven’t successfully expanded into the archipelago.
- Copy-paste? Maybe not: In 2020, Sequoia-backed digital ledger Khatabook quietly launched its app in Indonesia only to end up exiting within a year. An industry source says that its attempts at using its India strategy in Indonesia didn’t work out due to the differences between the two markets, which resulted in “a half-baked effort.”
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Don’t go at it alone: Another mistake some Indian firms may have made is starting small and trying to do things themselves. According to Chandra Firmanto, managing partner at Indonesia VC firm Indogen Capital, firms need strong local partners to expand to Indonesia.
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A compelling thesis: Despite the struggles that Indian firms have faced in Indonesia, the archipelago still remains a priority for firms looking at international markets as they explore their next stage of growth. What’s crucial is that they avoid the pitfalls of their predecessors and figure out a way to meet the needs of this new market.
Read more: Indian unicorns exit Indonesia, raising questions over expansion strategy
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