Indonesia seen as new frontier for startups in Southeast Asia

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The successful first-ever IPO of a startup in Indonesia, as well as the country’s burgeoning tech industry, has moved the nation in the spotlight of international investors seeking disruptive impulses and an opportunity to tap a huge future digital market.

E-commerce firm PT Kioson Komersial Indonesia Tbk drew strong investor interest for Indonesia’s first ever IPO by a startup, and its shares surged on their trading debut on October 5. Kioson raised 45 billion rupiah ($3.3 million) by selling 150 million shares, or 23.1 per cent of the company’s total share base. The offering was more than ten times over-subscribed, and the stock surged as much as 50 per cent on its debut.

The response to the IPO could potentially pave the way for more technology companies in Southeast Asia’s biggest economy with its 250 million people to follow in Kioson’s footsteps and list in the domestic stock market.

At the same time, big-name investors including Expedia, Alibaba, Rakuten or Sequoia Capital are pumping billions of dollars into Indonesian tech startups in a bid to capitalise on the country´s rapidly growing digital economy and potential as Southeast Asia´s largest online market.

Homegrown start-ups ranging from ride hailing apps to e-commerce firms, including Go-Jek, Kioson, Kredivo, Swingvy, Evenesis, Getslurp, Kargo, Ethis and many more.

Last year, $631 million in disclosed venture capital was ploughed into the country, according to research firm CB Insights, up from $31 million in 2015. But that figure has already been shattered in 2017, with $3 billion worth of deals clinched as of September 2017.

Indonesian president Joko Widodo has been a vocal supporter of digital innovation, most notably in his plan to create 1,000 local tech start-ups worth $10 billion by 2020. By that time, an estimated 480 million people are expected to be connected to the Internet all over Southeast Asia, up from 260 million in the region last year.

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The successful first-ever IPO of a startup in Indonesia, as well as the country's burgeoning tech industry, has moved the nation in the spotlight of international investors seeking disruptive impulses and an opportunity to tap a huge future digital market. E-commerce firm PT Kioson Komersial Indonesia Tbk drew strong investor interest for Indonesia’s first ever IPO by a startup, and its shares surged on their trading debut on October 5. Kioson raised 45 billion rupiah ($3.3 million) by selling 150 million shares, or 23.1 per cent of the company’s total share base. The offering was more than ten times over-subscribed, and...

Reading Time: 2 minutes

The successful first-ever IPO of a startup in Indonesia, as well as the country’s burgeoning tech industry, has moved the nation in the spotlight of international investors seeking disruptive impulses and an opportunity to tap a huge future digital market.

E-commerce firm PT Kioson Komersial Indonesia Tbk drew strong investor interest for Indonesia’s first ever IPO by a startup, and its shares surged on their trading debut on October 5. Kioson raised 45 billion rupiah ($3.3 million) by selling 150 million shares, or 23.1 per cent of the company’s total share base. The offering was more than ten times over-subscribed, and the stock surged as much as 50 per cent on its debut.

The response to the IPO could potentially pave the way for more technology companies in Southeast Asia’s biggest economy with its 250 million people to follow in Kioson’s footsteps and list in the domestic stock market.

At the same time, big-name investors including Expedia, Alibaba, Rakuten or Sequoia Capital are pumping billions of dollars into Indonesian tech startups in a bid to capitalise on the country´s rapidly growing digital economy and potential as Southeast Asia´s largest online market.

Homegrown start-ups ranging from ride hailing apps to e-commerce firms, including Go-Jek, Kioson, Kredivo, Swingvy, Evenesis, Getslurp, Kargo, Ethis and many more.

Last year, $631 million in disclosed venture capital was ploughed into the country, according to research firm CB Insights, up from $31 million in 2015. But that figure has already been shattered in 2017, with $3 billion worth of deals clinched as of September 2017.

Indonesian president Joko Widodo has been a vocal supporter of digital innovation, most notably in his plan to create 1,000 local tech start-ups worth $10 billion by 2020. By that time, an estimated 480 million people are expected to be connected to the Internet all over Southeast Asia, up from 260 million in the region last year.

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