Sign up for the Daily Newsletter, sent exclusively to our Premium subscribers. We break down the big and messy topics of Asia’s tech and startup community. Get the newsletter in your inbox everyday with a Premium subscription.
Hi readers,
I’ve been covering Indonesia’s startup scene for quite some time and have always been interested in the attempts of foreign companies to tap into this massive market. Of all the countries that have seen their companies venture into Indonesia, India fascinates me the most – not just for the number of companies expanding to the country but also for the profile and caliber of those now leaving it.
Before the recent retreat of Mobile Premier League (MPL) from Indonesia, Meesho and Zomato also decided to exit the market. What’s even more interesting about the decision of these firms is the fact that these are companies worth billions of dollars and supposedly have huge amounts of VC money at their disposal.
My off-the-record conversations with former employees and industry players suggest that these companies’ “failure” in Indonesia cannot be attributed to one single problem. But issues like product-market fit and go-to market strategies are often mentioned.
However, there are also external factors that have contributed to these exits. Most notably, Covid-19 has had a massive impact on these businesses – some more than others.
In the case of restaurant aggregator Zomato, its business was badly hit by the pandemic, as most restaurants were forced to close down during large periods of lockdowns. Before the pandemic, I was told that the Indian food delivery giant had been doing pretty well – but perhaps not well enough for it to invest and keep its business alive till the storm passed.
Despite these rather gloomy developments, Indian startups are still swarming to Indonesia. They’re hoping to learn a thing or two from their predecessors and sustain their business in the country. As always, I will be keeping a close eye on them.
— Ardi Wirdana, journalist at Tech in Asia
Top stories this week
Image credit: Timmy Loen
1️. Indian unicorns exit Indonesia, raising questions over expansion strategy
MPL’s recent retreat from Indonesia illustrates broader challenges that Indian startups face when expanding in Southeast Asia’s largest market.
2. Akulaku-backed digibank’s dicey road to profitability
Focus on consumer loans has become the main strategy for the Akulaku-backed digital bank to turn the tide, but it’s not without caveats.
3.Can ShopBack’s $80m reinvention take it to IPO?
A plain vanilla cashback platform may not be very exciting for investors, but one with a fintech spin may be a different story.
4. The rise of enigmatic insurtech unicorn Bolttech
Bolttech may have achieved unicorn status in under two years, but the Richard Li-backed firm remains relatively unknown even within insurtech circles.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
