BUILDING WINNING & SUSTAINABLE COMPANIES Kejora is committed to build one of the largest internet platform and tech eco-system in Southeast Asia. We focus on investing and growing highly scalable businesses creating the next unicorns from the region.
February 2016
2 years in operation
Created +400 jobs
26 Investments
Occupy ~2000 sqm office space
Named as one of the most active VCs in Southeast Asia
Company Builder (Accelerator)
Accelerator Fund
Incubator (Idea stage)
Our accelerator fund is focused on building successful digital companies. We connect top entrepreneurs with subject matter experts, the best technologies, strong networks that open doors and provide access to investors and strategic partners. This enables the startups to scale up at a rapid pace from Southeast Asia.
• Ideabox is an incubator; a joint venture with Indosat/ Ooredoo Group which focuses on incubating technology companies in the emerging markets. • The incubator has won various global awards including Global Telecom Business Innovation Awards, Asia Pacific Stevie Awards and Asia Communication Awards.
Confidential | 2
Indonesia is one of the world’s largest markets‌
China
1,355,692,576
India
1,236,344,631
United States
318,892,103
Indonesia
253,609,643
Brazil
202,656,788
Pakistan
196,174,380
4th largest population
.. also one of the largest economies
8th largest economy (PPP)
Still growing fast and consistently Country1
2000-’10
2014
11.5%
7.4%
1
China
$17,617 Bn
1 China
2
United States
$17,419 Bn
2 India
7.7%
7.4%
3
India
$ 7,376 Bn
3 Indonesia
5.2%
5.2%
.
..
7
. Brazil
8
Indonesia
$ 2,676 Bn
South Korea
4.2%
3.5%
20 Utd. Kingdom
$ 2,549 Bn
Brazil
3.6%
0.3%
United States
2.9%
2.4%
$ 3,264 Bn
..
Southeast Asia’s ecommerce landscape Comparison of devices used to shop online in Southeast Asia SINGAPORE
INDONESIA
27%
21%
26%
73%
79%
Major City
Other Regions
74% Major City
15%
Mobile Phone
72% Major City
21%
34%
Major City
28%
PHILLIPINES
THAILAND
66%
VIETNAM
50% 85% Other Regions Other Devices
50%
79% Major City Mobile Home
Source : Bain Southeast Asia Digital Consumer Survey (November 2015)
Other Regions
Kejora’s investments track record
720% IRR
*
438% IRR*
*projection
*The investments of Kejora in 2014 has generated MOIC 8.2x or IRR of 720% based on latest valuation end of Q2 2015. By end of Q2 2016, the investments are projected to generate MOIC 26x. The investments that Kejora has made in 2015 are projected to generate MOIC 6.6x by the end of Q2 2016. The total IRR over all investments made in 2014 and 2015 is projected at 438% end of Q2 2016. Confidential | 6
Kejora Partners
The team combines relevant experiences and industry expertise Sebastian Togelang Serial entrepreneur since the age of 22 with over 15 years of operational experience in digital & startups in Europe and Asia. Founder of Kejora Group (Mountain Kejora Ventures), Co-founder and investor of more than 30 international companies, Co-founder of Ideabox incubator, Cofounder of Qareer Group Asia and Compare88. He also co-founded the FinTech Association and Alliance of Venture Capitals in Indonesia (AVCII). Sebastian started his career at Deutsche Bank & Deutsche Boerse (German stock exchange). He studied Economics and Computer Science at University in Frankfurt. Andy Zain Serial entrepreneur, with over 20 years of operational experience in mobile, digital & startups. Managing Director of Mountain Kejora Ventures. Co-founder of Ideabox incubator. Co-founded and directed several tech companies including listed company Skybee tbk (IDX: SKYB) and MigMe (ASX: MIG). Deeply rooted to the regional innovation ecosystem as Director of Jakarta Founder Institute, Chairman for Mobile-Monday Indonesia, and also as a member of the Myanmar Innovation Council. He studied at Monash University Melbourne.
Eri Reksoprodjo
25 years of experience in finance, originating mandates in M&A, corporate debt restructuring, corporate financing, and capital markets transactions involving Indonesian sovereign, stateowned companies and major private groups. Former Partner at Saratoga Capital (usd$600 million PE fund), Indonesia Country Manager for Natixis Corporate and Investment Bank, appointed by the Government of Indonesia as Senior VP and head of Investor Relations at the Indonesian Bank Restructuring Agency (IBRA) to assist in marketing IBRA’s US$63 billion of financial assets to global financial and strategic investors and Executive Director at CIBC World Markets. He studied Finance at University of Indonesia and MBA from State University of New York.
...supported by additional operational team (IT, Finance, Accounting, Marketing, Design) of 10 specialists
Confidential | 7
Investment strategy:
(1) Importing leading business models and technologies to Southeast Asia, (2) Scaling businesses in the region as quickly as possible, (3) Expanding to other emerging markets
Europe USA
China / Japan / Korea Proven business model Proven business model
Proven business model Regional Accelerator
Regional Accelerator
Central Company Builder
Confidential | 8
Investment strategy: Hands on approach of company building and accelerating
Hands on value-add mentoring to ensure operational excellence & top acceleration
SEED
A
B
C-E
We focus on company building where we invest up to USD 5m/company in trenches upon achievement of KPIs, to turbo boost portfolio company for strategic acquisition or IPO
Confidential | 9
Why company builder
Current investment outlook: There is an abundance of start ups that lack vision, exposure, technology, structure, and many are run by inexperienced and un-professional teams. These risks greatly exemplify the chances of success and the ability to scale up quickly. Kejora Group Š2015
Company building is a good alternative. The solution: creating synergy to scale up rapidly in order to secure market leadership. Combine the best technologies, knowledge transfer from subject matter experts, lessons learnt from seasoned entrepreneurs, guidance from mentors, strong network and effective capital from Management. Confidential | 10
Company builder strategy: Optimized risk / return profile
“Early stage multiple potential at a growth stage risk�
Expected return
Kejora builder A
B
early stage growth stage Potential risk
A
Boosting returns
B
Risk reduction Startup level
Company Builder act as a co-founder and partner working hand in hand with the local startup To increased upside potential growth through low entry valuation
Fund level Fund
Business model (proof-of-concept) Management team (global hiring of start up executives with local market expertise, intensive coaching etc.) Market risk (rapidly growing emerging markets, local experts)
S1
S2
Local Advisor Sn
Local investment and management expertise Portfolio of 3-4 business models per year, 10-15 companies in total
Confidential | 11
Company Builder case study: Cekaja.com (Compare 88 Group)
Identification of promising ideas, market study
Team & company setup, incubation & market testing
Office space
Events, seminars
Scale up & internationalization to high-growth markets
Experienced Team
Best proven business models
Serial entrepreneur. Former private equity executive. Numerous software development awards.
(Germany, estimated EV: USD ~1 billion)
(UK only, Market cap. 1,5 billion Pound)
Vertical: Finance Business model: Financial comparison Total market • Total market size of 158m people and US$418b Total addressable market • 30% transaction online • ~50m people and ~$150Bn, growing at 13% CAGR
Growth of consumer lending + insurance premiums 2009-2012, avg CAGR 13% Malaysia
International technology + know how
Mentors+ network
Company builder team
Thailand
Philippines
12.93%
7.76%
CAGR
Former acting CTO of Check24.de Accomplished software architect.
+ Several Indonesian Banking and Insurance experts as full time employees + Several Banking & Insurance top Management as Advisors
Grow B2C (Technology, comparison Insurance, KPR, etc.) Grow B2B, B2B2C Became clear market leader in Indonesia
Indonesia 18.91%
11.92%
Co-founded Check24.de (then einsurance.com) Serial entrepreneur and technologist.
First tractions
Launched and signed over 70 top Banks & Insurance within several months, over 1,000 orders/day
Launched additional markets such as Philippines in late July 2014. Became leading comparison site in Philippines Preparing to enter more markets such as Thailand, Malaysia and Vietnam. Confidential | 12
Importing leading business models to high-growth markets
Risks involved in starting a business
Cost vs. Time to market
~80%
Technology
Initial development
Kejora Company Builder
Strategic investors
Costs
Risk
Business model
“Rocket Internet�
~50%
Business model
Execution
Technology Execution
Market
Market
Initial development
Kejora Company Builder
Systematically reduce risks
Time to market
Reduce time to market and revenue generation
Confidential | 13
Hands on acceleration approach:
Kejora fills in “Skill Gaps” & sets up A+ teams
0%
■
Founder A
■
Founder B
Competence spectrum
Marketing
Sales
Finance
Venture Partner / Expert
Product
IT
Operations
Kejora helps recruit fulltime Founder
Skill level
100%
0%
Team Profile
Scalable IT
SEO
Conversion Optimization
Crucial skill gaps
Skill level
100%
SEM
Crucial skill gaps
Additional Founder / Team
Team Profile
■ ■ ■ ■
Founder A Founder B Venture Partner / Expert Additional Founder / Team
Competence spectrum Marketing
Sales
Finance
Product
IT
Operations Confidential | 14
Hands on acceleration approach:
Service offering for portfolio companies through established ecosystem
Central & local competent teams and partners offer comprehensive support Project development
Media for equity
Local Adaptations
Revenue sharing
IT
SEO / SEM
Media
Fundraising
Affiliate marketing
Strategic advice
Online Marketing
Display ads
Marketing Local marketing
Sales & Advisory
Startup/ Company B2B / B2C Sales
Design & brand mgt.
Access to network
Infrastructure Office space
HR & Education
Office supplies
Direct sales
Executive HR
Call Ccnters
Recruiting
Sales support
Entrepreneur Training
Incubation and acceleration support thanks to in-house competence centers
Confidential | 15
Company building: sustainable companies
Valuation
Company building
Standard investment
Bigger team (higher operational cost)
Smaller team (lower cost)
Faster acceleration
Slower acceleration, startups constantly busy fundraising
Bigger shares of the company, more control
Smaller shares
High barrier to entry for competitors
Have to fight against more competitors
Less vulnerability towards bear or over-valued markets
Fundraising during bear or over-valued markets may have detrimental effects on startups
Company builder
Price adjustment
Normal scenario
Price adjustments D
C
B A
Company building Investment
Time
Kejora is focused on bringing proven, sustainable business models with large market caps from developed markets and localizing into the region. Kejora’s strategy of investing early and monitoring closely the company’s growth ensures strong business fundamentals that promote maximum shareholder value and returns. These solid building blocks also promote sustainability regardless of cyclical conditions in the global economy. Confidential | 16
Kejora’s approach is to be “Trusted Partner”
Local Families
centralized
local investment mgt.
local investment mgt.
global hype deals
only local (low int. scalability)
‘glocal’ fit
employees
employees
entrepreneurs
IPO / trade sale
not necessary for exit
IPO / trade sale / buyout
international
local
local
competitor / copycat
competitor / copycat
partner & supporter
rebuilt / copied
own development
provided by original startup / local rebuild
Resource center
centralized
local
central & local
Investment mgt.
mgt. fee (fund size)
mgt. fee (exit)/dividend
carried interest (exit)
Operating team
fee
(n/a)
cost covering fee + equity
Original startup
(n/a)
(n/a)
equity
salary + ESOP
equity
equity
Targets
Investment decision Deal type Management type Exit strategy
Main Incentive
Execution
Operating team Role of original startup Technology & SOPs
Target mgt. team
Confidential | 17
Portfolio companies in Southeast Asia since 2014
3500 registered SME using the service
Launched: 8 portals in Dec 2015 ~1M visitors within 2 months from launch
Confidential | 18
Named as one of the most active VCs in Indonesia and Southeast Asia by TechinAsia and won several global business awards
Confidential | 19
Secured top series A valuations
“One of the highest Series A valuations of any Southeast Asian startup.” “The round, it says, puts Qerja at an eight digit valuation.” Confidential | 20
Secured top series A valuations
Most recent round of funding from NSI
Confidential | 21
Selected portfolio profile
Compare88 is a leading financial comparison site that caters towards the Southeast Asian market. The information that it offers helps increasingly demanding customers select and buy products and provides banks & insurance companies with cost efficient acquisition channels. J.P. Ellis (CEO) Entrepreneur. Former Private Equity executive. Numerous software development awards. Fluent in Indonesian Karl Knoflach Co-founder of Check24 – a leading financial comparison website in Germany with valuation of around USD 1 Billion Traction: - Launched and signed over 70 top banks & insurance companies within 4 months of operation - 1 million monthly unique visitors - 1,000+ new orders received every day - >USD 40 million gross application value / month Company Presence:
Qareer Group Asia is a synergistic Human Resource platform that addresses the quality and quantity aspects of recruitment that targets to both employers and employees. Through Qerja.com (user generated content platform), good quality candidates and traffic are funneled to its sister jobs portal: Jobs.id. Veronika Linardi (CEO) Founder of Linardi Associates (executive recruitment). Previously worked at Charoen Pokphand, CNN and PwC Stephen Kohar (COO) Stephen has profound experience in digital enterprise and was previously the Corporate Advisor for a jobs portal in Indonesia Traction: - Leading jobs portal in Indonesia within 7 months of operation, with over 33k active job listings per month - More than 8,000 active employers - Over 3.5 million monthly unique visitors Company Presence: Confidential | 22
Selected portfolio profile
Jualo is a C2C marketplace that utilizes geosearch functions to enable buying and selling of secondhand goods between users. Jualo facilitates not just information but an end-to-end transaction process to enable users to bid, trade and purchase.
Etobee is the Agoda for logistics; a marketplace where e-commerce partners, businesses and individuals dispatch their delivery orders in realtime to Etobee’s network of professionals and trusted drivers, taking into account location, vehicle size and its capacity.
Chaim Fetter (CEO) Entrepreneur. Moved to Indonesia in 2005 to establish “Peduli Anak� Foundation in Lombok.
Sven Milder (CEO) Entrepreneur from the Netherlands. Founded LOVT.co and has 10 years of experience in the marketplace.
Bjorn Dudok van Heel Seasoned businessman, has managed greenfield businesses and SME enterprises in Indonesia and globally
Iman Kusnadi (COO) Previously, Director of Luxola Indonesia and has numerous years of experience in the Indonesian logistics industry.
Traction: - Sold more than USD100 million worth of merchandise since January 2014 - >2.5 million monthly visitors
Traction: - Connected to 25 logistics companies - Over 2,000 drivers are connected to the system - Processing around 1,000 orders on a daily basis
Company Presence:
Company Presence: Confidential | 23
Selected portfolio profile
Y Digital Asia is a digital performance consultancy with a data driven approach to create measurable and profitable digital solutions and campaigns for corporate clients. Boye Hartman (CEO) Marketing and mobile expert with 25 years of experience in sales, marketing, and advertisement Arne van Looveren (CCO) Led digital agencies in Malaysia and Indonesia. Experienced in forming client strategies and campaigns from scratch. Traction: - Within 3 months of operations, oversaw marketing budget of > USD1 Million - Operational profitable - Over 40 corporate clients Company Presence:
BDigital is a digital performance consultancy aimed at increasing effectiveness and efficiency for SMEs. Bdigital has a complete solution for offline SMEs to expand businesses to the online realm starting from generating websites, executing online marketing campaigns, and social media. Jose Ricardo Santos (CEO) 4 years of international experience in Southeast Asia working in online businesses. Specialty in E-marketing. Traction: - First in market to launch a web app solution that enables SME businesses to own affordable web apps. - 3,500 registered SME using the service
Company Presence: Confidential | 24
Selected portfolio profile
ProSehat is an Indonesian online health ecommerce site which enables customers to buy health products such as generic medicine, prescribed medicine, supplements, vaccines, and medical supplies. TanyaDok is a doctor / patient consultation platform that leads users to try ProSehat. Dr. Gregorius Bimo, MD (CEO) Medical Doctor. 4 years as a doctor and 9 years of experience in digital health. Dr. Agnes Susanto, MD (COO) Medical Doctor. 5 years as a doctor and 3 years of experience in digital health marketing.
Wavoo is a mobile dating app that provides an easy, fun and anonymous way to find new friends, true love or even something more without the need of having awkward encounters or fear of rejection. Users remain anonymous until they both match their desires.
Yudhy “Domex� Mandey (CEO) Graphic designer with over 10 years of experience in the digital and technology industry globally
Traction: - 2,000 affiliated doctors within sites - 5,000 medicine and medical supply - Hundreds of weekly orders - ~1 million monthly unique visitors
Gema Megantara (CTO) Wavoo's Co-founder, CTO, and resident geek who spends more time staring at a computer screen than sleeping or eating Traction: - ~2 million users - 35% month-to-month growth - More than 50 million monthly swipes and 40 million lines of chat
Company Presence:
Company Presence: Confidential | 25
Selected portfolio profile
ZettaMedia is an online media network with a variety of portals in Indonesia with a straight forward mission to build a happy and creative country. ZettaMedia is utilizing its network of >10,000 writers to entertain different user profiles in Indonesia Brilliant Yotenega (CEO) Founder of nulisbuku.com. Was previously in charge of leading production in Indonesia’s largest book publisher. Aulia Halimatussadiah (CCO) Writer of 30 books and has been a top influencer in Indonesia. She has been mentoring hundreds of content writers to create high quality content in the form of books and blog posts. Traction: Launched: 8 portals in Dec 2015 ~1m visitors within 2 months from launch Company Presence: Confidential | 26
Development of digital investment landscape in Indonesia Indonesia
Southeast Asia
~Valuations*
~500M+
~100M+
~10M+ * Data are estimations based on different information gathered from the web
Confidential | 27
The investment opportunity window is shrinking
2012
2011
2009
2007
1997
opportunity window
Valuation
2014
faster & faster success curves
Time since launch Speed and acceleration becomes increasingly important \\ Confidential | 28
The investment opportunity window is becoming more competitive 2015 2015
>200B **
~5B*
+500 M
2014 2014
2011
2010
2014
2015
vs
2030
First mover advantage Relatively cheap investment with big growth potential vs expensive and slower growth in the near future * Estimation cost for Land grabbing (Investments) **estimation, SoutheastAsia market projected US$625 billion by 2030 by Mckinsey Confidential | 29
Kejora eco-system/ network
Ideabox is a tech business incubator
Founder Institute is a Silicon Valley
powered by a partnership with Indosat.
based global incubator program which
Ideabox focuses in helping early stage
has created over 1,000 companies
startups in a 120-day acceleration
since 2009. Andi Zain has been actively
program to build impressive products.
directing the Founder Institute Jakarta chapter since 2011.
Confidential | 30
Kejora eco-system/ network
FinTech Indonesia Association was
Mobile Monday is a global community of
established in early 2015 as a platform to
mobile industry visionaries, developers and
accommodate FinTech startups in
large corporates. It promotes cross-border
Indonesia to disrupt the traditional financial
business development through virtual and
sectors. It also serves as a bridge between
live networking events to share ideas,
the FinTech community and government.
leading practices and trends from global
markets.
Confidential | 31
Kejora eco-system/ network
Network of Mentors Over 60 mentors listed to support the learnings One to one meeting with mentors and resident experts specializing in various disciplines from marketing, financial management, business planning, legal and technology
Confidential | 32
Kejora excellent network with stakeholders
Kejora actively connects startups with important decision makers in the region enabling faster growth 2
Presenting in front of President Joko Widodo
Meeting with OJK’s Chairman Muliaman Hadad
Meeting with Governer Basuki Tjahaja Purnama
Launching FinTech association together with CEO of Bank Mandiri, Budi Sadikin Confidential | 33
Kejora eco-system (Tech center)
Kejora Ventures ~2000 m2 of fully equipped workspace including meeting rooms & office amenities.
Confidential | 34
Contact
Sebastian Togelang st@kejorahq.com
Eri Reksoprodjo er@kejorahq.com
Wisma Barito Pasific Jl. Letjen S. Parman Kav. 62- 63 Jakarta 11410 Indonesia www.kejorahq.com
Confidential | 35