Deloitte Innovation Innovation Ecosystem in Southeast Asia

SEA Internet economy SEA E-commerce market size (GMV, $B) market size (GMV, $B)

8B 1.7B 49% 94% ID 27B 28% ID 12.1B 41% 100B 53B

5B 1B 19% 27% MY 8B 16% Indonesia largest MY 2B 21% Indonesia market 21B ($27B) and fastest 7B 2B 0.5B hits $12B at 94% 30% 42% 25% growing (49% CAGR) 34% PH 5B PH 1.5B 21B will be a $100B 10B CAGR, accounts for 7B 1B 16% internet economy 22% more than $1 in $2 SG 10B 13% SG 1.8B 18% 22B by 2025 5B spent in the region 6B 0.9B 27% 49% TH 12B 22% TH 3B 30% 43B 2015 2018 13B 2015 2018 2025 CAGR 2025 CAGR 3B 0.4B 35% 87% VN 9B 25% VN 2.8B 43% 33B 15B

SEA Trivia ID MY PH SG TH VN W WORLDWIDE SEA internet economy market size (GMV, $B) 86% 75% 70% 73% 80% 77% 75% Percentage of internet users who bought something online via any device in the past month (survey-based) M-Commerce use amongst internet users 76% 58% 57% 54% 71% 62% 55% Percentage of internet users who bought something online via a mobile phone in the past month (survey-based)

E-commerce consumer ARPU vs. GDP per capita Average amount spent on e-commerce purchases of consumer 2.3% 1.6% 0.6% 1.8% 1.5% 1.9% N/A goods by each e-commerce user in 2018, vs GDP per capita

Credit card ownership The percentage of adults aged 15+ who possess a credit card 2% 21% 2% 49% 10% 4% 18%

$ Penetration of mobile banking Percentage of internet users that accesses banking services 61% 66% 54% 64% 74% 50% 41% via a mobile device

Use of ride-hailing apps Percentage of internet users that use taxi booking or ride-sharing 51% 48% 40% 52% 20% 45% 30% apps each month (survey based) Source: we are social 2019 report

Internet economy GMV Digital payment service adoption SEA unicorns fund-raising ($B) 2016-H1 2018 as % of GDP (2018) Adoption of digital payments increasing, yet usage remains low; lack of widely accepted Most funding went to SEA’s 9 unicorns solutions 60 ($16B since 2016); Grab 1st decacorn 50 ($10B+ valuation), less than 20 globally 40 % % % % 2.8 2.9 2.7 1.6 30 52% 2X 46% 45% 20 39% % 25% 10 21 0 SEA Indonesia Malaysia Philippines 7.1B 6.5B ID MY PH SG TH VN 2.8B 2.9B 3.2% 2.7% 4.0% Multiple players offering digital payment services 2016 2017 H1-2017 H1-2018

Ride Hailing Tech Telecom Singapore Thailand Vietnam Go-Pay (ID) Apple Pay Telkomsel t-cash (ID) GrabPay (SEA) Google Pay Globe GCASH (PH) Ovo (ID) Paypal TrueMoney (TH) GMV: Gross Merchandise Value Kudo (ID) Banks e-Commerce DBS PayLah! (SG) AirPay (SEA) Mandiri e-Money (ID)

Source: e-Conomy SEA 2018, Google-Temasek report Deloitte Innovation Innovation Ecosystem in Indonesia

Moving into SuperApps E-commerce Giants Both unicorns started out as ride-hailing companies, but are now on the Both unicorns are Indonesian online market places enabling merchants to path of being the “superapp” for Southeast Asia, that will serve all of our What do set up an online presence on their platforms, selling a wide range of goods everyday needs, from commutes to food delivery to logistics and they do and serving a huge range of consumers. Both have since branched out into payments. Grab has had a headstart in expanding to various SEA markets, other services, including ticket sales, payment solutions, and other financial while Gojek has had a headstart in providing a multitude of services for services. Bukalapak also announced expansion plans in May 2019, with the their users. ? launch of BukaGlobal to serve overseas markets.

Year founded Year founded 2010 2012 2010 2009 Reported number of app downloads Monthly visits to website 142 million 144 million 81,626,008 108,487,091 Known funding Reported number of merchants Series F - US$3.1B Series H - US$9.1B 4 Million 4 Million Notable funders Known funding Mitsubishi, Google, JD.com, Yamaha, Microsoft, Softbank Series D - US$50M Series G - US$2.45B Tencent Holdings, Visa Vision Fund, Toyota Notable funders "Source: News, Crunchbase, Tracxn" Mirae Asset, Naver Asia Growth Alibaba Group, Softbank Vision ECOSYSTEM / SUPERAPP EFFECT Fund, GIC, Emtek Fund From rides to massages to payment solutions, Gojek has had "Source: News, Crunchbase, Tracxn" a headstart in introducing a multitude of services for their Where’s the NETWORK EFFECT users, keeping them engaged beyond just ride services. Innovation By pooling together merchants and related services, users enjoy a wide range of shopping categories. With users NETWORK PRODUCTS & SERVICES congregating, more merchants would find it beneficial to come on board. From GrabPay to GoPay, both platforms are also finding ? ways to provide financial solutions for their users, to NEW PRODUCTS & SERVICES complement their retail offerings. From Tokocash to TokoSwipe to BukaDana, the retail platforms are finding ways to provide e-wallets and other financial solutions for their users, to complement their popular marketplace services.

16.6B NEW CHANNELS Moving beyond e-commerce, both platforms also run The startup partner apps that allow offline kiosks to sell their digital funding trends products and select products. As investors and corporates alike begin to realise the vast potential of the Indonesian market, investment into startups saw a sizaeble growth A breakdown of deals between 2016 and 2017, followed with a spike from 2017 to 2018. in Indonesia Gojek and Tokopedia took a large piece of the pie in 2018, seeing 10.3B* The e-commerce category leads Indonesia's startup investments by a considerable margin, US$1.5B and US$1.1B respectively in both by percentage of deals and by investment value. investments, followed by Traveloka at US$500M. Gojek leads the way in the transport sector in Indonesia, which accounts for a lower percentage of overall deals conducted but holds a considerable chunk of total investment value. *2019 numbers not final Other sectors account for many of the other deals, but appear to be relatively low value 167 investments. Source: Tracxn Source: Google & A.T Kearny Study

Funding amount by year in bil (USD) Breakdown of number of Deals by % Number of Rounds 127*

104 42 4 8 10 5 31 100 104

2.75B 58 37 1112 1.9B 1.65B Breakdown of % of total investment value

E-commerce Transport Finance Classified Payment Others 2015 2016 2017 2018 2019 nes to Watch Innovation Ecosystem in Indonesia

Financial Services Retail & Distribution

What do Warung PINTAR they do akulaku Warung Pintar is a retail tech company that aims to transform the ubiqui- Akulaku is an Indonesian financial services provider offering installment tous mom-and-pop stores, warungs, into digitally-enabled smart (pintar) plans and loans to users who do not have credit cards. Outside of kiosks. They were founded in 2017 and has since raised Series B, with total Indonesia, it is now present in other parts of Southeast Asia like Malaysia, funding reportedly amounting to US$35.5M. Vietnam and the Philippines. Founded in 2014, it is currently a Series D ? startup, and has reportedly raised US$220M. BRANDING & EXPERIENCE Where’s the Offering merchants a pre-fabricated kiosk clad in a striking yellow, the warung NEW PRODUCTS & SERVICES pintar comes fitted with technologies such as digital Point of Sale systems, free Innovation WiFi, digital displays, phone charging points and more. While Akulaku is better known as a prominent online consumer financial service provider in Indonesia, it has also launched other related business NETWORK EFFECT streams, like its own e-commerce platform. With more warungs on their platform, it becomes easier for Warung Pintar to offer IMPROVING TOOLS AND PROCESSES ? centralised product distribution services for merchants and also collect data from them. This gives insights into general trade patterns, which have been difficult to track previously. Akulaku has devoted resources into Artificial Intelligence and Big Data to strengthen their risk controls, screen credit applicants and assign risk profiles. Did You Know? Did You Know? Alfamind – Indonesia’s first retail network of augmented reality stores

Chinese interest in Indonesia’s fintech and beyond? Powered by MindStores, Indonesia’s leading retail chain store Alfamart has rolled out its partner sales programme in the form of virtual storefronts. Aspiring micro-entrepre- Akulaku was founded by two Chinese entrepreneurs who were formerly with Ping neurs get to customise their stores and choose products that they wish to carry, and An Insurance. With 15 million registered users and 2 million active users, they Alfamind will handle all the logistics for them when orders come in. have managed to garner interest from Chinese investors, including strategic investments from Ant Financial. SOCIAL IMPACT It’s a captivating story of a young startup trying to uplift society through digitalisation. SOCIAL IMPACT While Warung Pintar has captured the imaginations of a lot of us, there are many other With much of Southeast Asia unbanked or underbanked, fintech startups play an retail digitalisation initiatives and partner (mitra) selling programmes targeting the important role in promoting financial inclusion through their products and services. micro-SMEs, helmed by startups of all sizes from Geraiku to Bukalapak, and Alfamart.

Others to watch: Others to watch:

Agriculture Healthcare

What do TaniHub they do halodoc TaniHub is an agritech startup that connects farmers to markets and Halodoc is a health tech platform based in Indonesia that connects patients customers, and also allows farmers to run crowd-funding campaigns with doctors, pharmacies, insurance and more in a single app. Launched in through its TaniFund platform to raise money to plant new crop . Founded 2016, it is currently a Series B startup, and has reportedly raised US$65M. in 2015, it is currently a Series A startup with a known funding of US$10M. ? END-TO-END SERVICE SIMPLIFYING THE SUPPLY CHAIN With more than 22,000 and 1,200 pharmacies on their platform, spanning Tanihub aims to simplify a farmer’s supply chain and provide them access to Where’s the across 25 cities in Indonesia, Halodoc provides unrivalled access to licensed markets and finance. Cutting out the middlemen, their platform directly connects Innovation medical professionals. Users can communicate via chat , video or voice call smallholder farmers to over 400 small businesses and 10,000 customers. with these medical professionals on the platform. After consultation, Halodoc even has your medication delivered by Gojek (under GO-MED)! NEW CHANNELS FOR FINANCE WHOLE NEW EXPERIENCE Given the financial difficulties faced by most small-holder farmers, peer-to- peer lending offers a way out for farmers trying to make a living but do not have that ? Halodoc has identified gaps in the industry (lack of info and inconvenience) and small amount of capital required to do so. has managed to solve them through online channels. Users can now enjoy a simple and straightforward experience in a typically stressful process. Did You Know? Did You Know? Finding new possibilities through acquisitions and partnerships Superapps want a piece of the healthcare market

Warung Pintar acquired Limakilo, a platform linking farmers directly to markets Both Grab and Gojek have stepped out to indicate their plans to serve the healthcare and customers, in March 2019. This not only helps farmers reach more sector. Grab had announced in 2018 that they would be entering a joint venture with customers, it helps warungs sell better by offering a diversified selection of goods. China’s Ping An Good Doctor. Meanwhile, Gojek has not only partnered Halodoc for GO-MED, they had invested into Halodoc’s Series A round.

SOCIAL IMPACT Others to watch: Agriculture is one of the key sectors in Indonesia. In a discussion about Industry 4.0 during the recent presidential elections debate, President Joko Widodo had mentioned Tanhub’s role in revolutionising the agriculture sector.

Farmers in Southeast Asia tend to hold small plots of land that are inefficient and are often impoverished. The proliferation of agritech startups like Tanihub in Indonesia and elsewhere in this region promises to uplift the farmers and help them attain a better livelihood.

Others to watch: Deloitte Innovation