In Indonesia, daily requirements are often higher in small towns and rural areas. Super co-founder and CEO Steven Wongsagedo said the price difference in Tier 2 and Tier 3 cities could range from about 10% to 20%, with about 200% in the eastern provinces. Super uses social commerce and a streamlined logistics chain to reduce freight costs. The startup announced today that it has overbaked a $ 28 million Series B led by SoftBank Ventures Asia.
Other participants included Barung Ameshia, Insignia Ventures Partners, Y-Combinator Continuity Fund and Bain Capital co-chairman Stephen Pagliuca, while partners from DST Global and TNB Aura invested in this round for the first time.
The funding reaches Super’s total amount so far to more than $ 36 million, which the company says is the highest funding the Indonesian social commerce startup has ever made.
Super, which participated in the Y 2018 Combinator’s Winter 2018 batch, focuses primarily on cities or towns with GDP at $ 5,000 USD or less per capita. It currently operates in 17 cities in East Java, and consists of thousands of agents, or resellers, and hundreds of thousands of 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 expand its product ranges beyond fast-moving consumer goods (FMCG) and develop its recently launched white label brand, SuperEats.
Wongsoredjo told ClearTips that Super’s ultimate goal is to “build Indonesia’s Walmart Group without retail stores and use the social commerce aspect to build a sustainable model,” focusing Pindoduo on China’s e-way. Commerce has become one of the companies. On small towns.
Wongsoredjo said that prices of consumer goods are higher in small cities and rural areas for two reasons. The first is that it costs more to meet orders from smaller cities, compared to larger orders in supply chain costs, and the second is infrastructure that makes it harder for manufacturers and FMCG brands to truck goods to rural areas Therefore, supply does not meet demand.
Super operates a central warehouse, as well as small hubs close to buyers. Most of Super’s products are supplied by regional FMCG brands, and group orders are delivered to agents, who in turn deliver 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.
Other social commerce companies in Indonesia include Kitabeli, Chilibelli and Vobiz. Wongsandejo said Super had a headstart to serve small towns and rural areas because it does not focus on Jabodetabek, or the greater Jakarta region. Its headquarters and core operation teams are based out of all major cities.
“We believe that by not having Jabodetabek’s presence in our DNA, we can build unique social commerce products with a hyperlocal touch to serve rural communities,” Wongsorjo said. “We want to go after the remaining 90% of the market, which is still under-penetration.”
“We have been impressed by the Super Team’s deep knowledge and commitment to the Underground regions of Indonesia, and they believe that a truly local team like them would do well,” said Cindy Jin, Asia Partner at SoftBank Ventures Will be equipped to navigate and build platforms. This is a hyperlocal market. “