Mapping Indonesia’s leading D2C brands

This is an updated version of the article that was first published on November 25, 2021. Since then, several new startups and new funding rounds have been added to the list.

2023 was challenging for direct-to-consumer (D2C) brands in Indonesia.

For one, the Indonesian government had temporarily banned TikTok Shop, disrupting the sales for many brands.

Those in the beauty and personal care segments were particularly affected, as many of them livestream on TikTok Shop to showcase their products.

Funding value in D2C fell to US$82 million in 2023, plunging by nearly 70% year on year after reaching a peak in 2022, according to Tech in Asia data. Deal count also decreased by 57% during the same period.

This funding drought is likely to continue. After nearly five months into this year, only a handful of D2C players have raised funding from VCs. These include Gently, a babycare company that secured US$2.1 million in a round led by Northstar Group, and Tjufoo, a brand aggregator that bagged the same amount before announcing its merger with Indonesia-based B2B ecommerce firm Sinbad.

See also: D2C in Indonesia: life after TikTok Shop ban and why offline retail still matters

Nevertheless, the country’s D2C market size is expected to grow further. For example, compound annual growth rate in the beauty and personal care category is expected to jump by 7.8% between 2022 and 2027, according to a report by boutique investment bank Favour Capital.

The report also forecasts that the market sizes of two segments –  pet care and mom and baby – will increase by 22.5% and 13.4%, respectively.

Investor interest in F&B

Compared to other D2C sectors, food and beverage (F&B) has seen the most investor interest in recent years.

In April, mobile cafe startup Jago Coffee raised US$6 million. The company is hoping that its concept of deploying electric coffee carts around Jakarta can differentiate it from major competitors such as Kopi Kenangan and Fore Coffee, which have shifted their their attention to international markets.

Meanwhile, baby-food manufacturer Nayz recorded a 41% uptick in revenue to 22 billion rupiah (US$1.4 million) in the first half of 2023, following an IPO on the Indonesia Stock Exchange.

That said, the F&B sector is not without its challenges. Flash Coffee, which has raised at least US$70 million since its inception in 2019, exited Singapore in October 2023, citing lackluster performance compared to its other markets. Just a month later, its Thailand business was acquired by Turn Capital.

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