Lummo finds new revenue stream – just in time

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Hi there,

I don’t know much Latin, but one phrase I know is ceteris paribus, which translates to “all other things being equal” in English. It’s funny to have learned it within the safe confines of the classroom (thanks, economics!) because as we’ve all experienced in the past few months, the real world is basically a jungle.

Until recently, it was perfectly normal for a tech company to take their time to explore product-market fit at the expense of profitability and even revenue, in some cases. It goes without saying that those times have ended.

Lummo, previously known as BukuKas, had been one of those companies: the Indonesian startup did not generate revenue in its first couple of years of operations. But as my colleague Jofie outlined in this week’s Big Story, that has thankfully changed – just in time.

A major reason is the company’s broadened focus from bookkeeping to ecommerce enablement. While losses widened, it reported revenues of US$2 million for the financial year ending March 31, 2022.

Meanwhile in the Hot Take, I examine whether Douyin’s struggles in China will affect TikTok Shop elsewhere.

– Putra

THE BIG STORY

Lummo starts generating revenue in FYE 2022, but losses widen

Image credit: Timmy Loen

“We are optimistic about the next 24 months. Building a great business is a long-term game,” says CEO and co-founder Krishnan Menon.

THE HOT TAKE

Live commerce in China is approaching a ceiling. Will TikTok Shop be affected?

Photo credit: ByteDance

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