Singapore-based ecommerce marketing startup raises $1m to enter Indonesia
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The pre-series A round comes just two months after Ematic raised its seed round, worth US$1.07 million, led by Wavemaker Partners and joined by 500 Startups and Convergence Ventures.
The funding will be used to intensify the Singapore-based startup’s quest for regional expansion. Indonesia was already a priority destination for the company, and it expects MDI’s support to help it further along. It has just opened an office in Jakarta, its first outside of Singapore, and is currently recruiting there.
Ematic’s products include HiIQ, a tool that figures out when is the best time to reach out to which customer, and ByeIQ, a method for encouraging engagement when a user is about to leave your website.
Indonesia is a particularly attractive market for Ematic given its mammoth market size and ecommerce potential. The numbers are well known; a population of 250 million, the largest in Southeast Asia, with a recent annual GDP increase of five to six percent. A 65.6 percent growth for retail ecommerce in 2015, according to eMarketer. 73 million internet users – the highest number in Southeast Asia.
“Indonesia has the largest internet population in Southeast Asia, which is set to grow at a blistering pace,”
“Indonesia has the largest internet population in Southeast Asia, which is set to grow at a blistering pace,” says Ematic founder and CEO Paul Tenney in a statement. “There has been a huge pull for us from regional and local online retailers to be in Indonesia to help these retailers capitalize on this opportunity.”
Paul explains that the resources provided by MDI Ventures in terms of investment and market insight will help Ematic to quickly expand in the country. Telkom’s 150 million customer base and network is also an attractive prospect for the startup.
Even in the event that market enthusiasm isn’t completely warranted, there’s enough of an incentive for ecommerce players to strike while the iron’s hot. Ematic, in turn, wants to be there to offer its services to those ecommerce players. It’s already signed up high-profile clients like fashion estore Berrybenka and lifestyle marketplace Bobobobo. Back in December, the company had more than 50 clients in Singapore, Thailand, and Indonesia.
“Email marketing is the most important channel for digital marketers in Indonesia; we see it contributing between 25 to 35 percent of total sales for the companies we work with,” Paul adds.
“Our approach allows us to achieve desired long term results and improve all marketing metrics within a short period. But more importantly, our solutions are much more manageable for the small marketing teams that we often see in Southeast Asia.”
Questions & Answers
Q.What services does Ematic Solutions offer to businesses?
What services does Ematic Solutions offer to businesses?
Ematic Solutions provides tools like HiIQ, which identifies optimal customer contact times, and ByeIQ, designed to boost engagement when users consider leaving a website. They focus on email and digital marketing to improve various marketing metrics.
Q.How will the investment from MDI Ventures assist Ematic's expansion into Indonesia?
How will the investment from MDI Ventures assist Ematic's expansion into Indonesia?
MDI Ventures' support offers both investment capital and market insights, which Ematic expects to accelerate its growth in Indonesia. The association with Telkom Indonesia's large customer base and network is also seen as a valuable advantage.
Q.Why is Indonesia considered a particularly attractive market for Ematic Solutions?
Why is Indonesia considered a particularly attractive market for Ematic Solutions?
Indonesia offers a large market with 250 million people and 73 million internet users, the highest in Southeast Asia. Its retail ecommerce sector saw 65.6 percent growth in 2015, indicating significant potential for Ematic's services.
Q.How quickly did Ematic Solutions secure this pre-series A funding round?
How quickly did Ematic Solutions secure this pre-series A funding round?
This pre-series A funding round was raised just two months after Ematic Solutions completed its seed round. The seed round, worth US$1.07 million, was led by Wavemaker Partners and included other investors.
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