Super, An Indonesian Hyperlocal Social Commerce Startup, Raises $28M Led by SoftBank Ventures Asia | Software Development Company
In Indonesia, daily necessities often cost more in smaller cities and rural areas. Super co-founder and chief executive officer Steven Wongsoredjo said the price difference can vary from about 10% to 20% in Tier 2 and Tier 3 cities, to nearly 200% in eastern provinces. Super uses social commerce and a streamlined logistics chain to lower the cost of goods. The startup announced today it has raised an oversubscribed $28 million Series B led by SoftBank Ventures Asia.
Other participants included returning backers Amasia, Insignia Ventures Partners, Y-Combinator Continuity Fund and Bain Capital co-chairman Stephen Pagliuca, while partners from DST Global and TNB Aura invested for the first time in this round.
The funding brings Super’s total raised so far to more than $36 million, which the company says is the most funding an Indonesian social commerce startup has raised so far.
Super, which took part in Y Combinator’s winter 2018 batch, focuses mainly on cities or towns with a gross domestic product per capita of $5,000 USD or lower. It currently operates in 17 cities in East Java, and has a network of thousands of agents, or resellers, and hundreds of thousands of end buyers. The company will use its new funding to double its presence in the region and launch in other Indonesian provinces this year. It will also expand its product categories beyond fast-moving consumer goods (FMCG) and develop its recently-launched white label brand, SuperEats.
Wongsoredjo told TechCrunch that Super’s ultimate goal is to “build the Walmart Group of Indonesia without having a retail store and utilizing the social commerce aspect to build a sustainable model,” similar to the way Pinduoduo became one of China’s biggest e-commerce companies by focusing on smaller cities.
Prices for consumer goods are higher in small cities and rural areas because of two reasons, Wongsoredjo said. The first is that orders from smaller cities cost more to fulfill, with supply chain costs adding up, than larger orders, and the second is an infrastructure that makes it harder for manufacturers and FMCG brands to truck goods into rural areas, so supply does not meet demand.
Super operates a central warehouse, along with smaller hubs closer to buyers. Most of Super’s products are supplied by regional FMCG brands, and group orders are delivered to agents, who in turn perform last-mile deliveries to their buyers. This keeps prices down by making its supply chain more efficient and enabling it to fulfill orders within 24 hours without relying on third-party logistics providers.
Want to benefit from modernized operations and remote work in this critical situation? Build an application for your business today and have a seamless workflow process.
Other social commerce companies in Indonesia include KitaBeli, ChiliBeli and Woobiz. Wongsoredjo said Super had a headstart to serve smaller cities and rural areas because it does not focus on Jabodetabek or the greater Jakarta region. Its headquarters and core operations teams are also all outside of major cities.
“We believe that by not having Jabodetabek’s presence in our DNA, we can build unique social commerce products with the hyperlocal touch to serve rural communities much better,” Wongsoredjo added. “We want to go after the rest of 90% of the market that is still under-penetrated.”
In statement, SoftBank Ventures Asia partner Cindy Jin said, “We have been impressed by the Super team’s deep knowledge and commitment to Indonesia’s underserved regions, and believe that a truly local team like theirs will be well equipped to navigate and build out a platform in this hyperlocal market.”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.