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 leading companies from the region.
February 2016
2 years in operation
Created +400 jobs
Named as one of the most active VCs in Southeast Asia
26 Investments
Company Builder (Accelerator)
Incubator (Idea stage)
Ideabox is an incubator; a joint venture with Indosat/ Ooredoo Group which focuses on incubating technology companies in the emerging markets.
Occupy ~2000 sqm office space
Accelerator Fund
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.
The incubator has won various global awards including Global Telecom Business Innovation Awards, Asia Pacific Stevie Awards and Asia Communication Awards.
ConďŹ dential |2
ASEAN region as the target market
INDONESIA
ASEAN
Population
254,971,986
633,148,756
Total GDP
USD 888.5 Billion
USD 2.4 Trillion
Gross National Income
USD 2.3 Trillion
USD 7.22 Trillion
Internet Penetration
78,000,000 (30.5%)
203,238,805 (38%)
Mobile Phone Penetration
278 Million
776 Million
E-commerce Sales Growth
37.2%
25%
Southeast Asia is the 3rd largest market after China and India in Asia. Indonesia represents the biggest economy is Southeast Asia with the 4th largest population in the world
ConďŹ dential |3
Southeast Asia’s e-commerce industry
E-commerce market size in Southeast Asia Market size ($ Billion)
25-30
12-15
10-15 8-12
7-10 5-7
2013 Level Theoretical Potential
1.3
1.3
1.1
1.7
0.9
0.8
Indonesia
Malaysia
Phillippines
Singapore
Thailand
Vietnam
Estimated e-commerce growth rate 25%
25%
11%
10% 6%
2013 - 2017 China
ASEAN 6
United States
Europe
Japan
Source : ATKearny Lifting the Barriers to E-commerce in ASEAN (2015) ConďŹ dential | 4
Funds terms and funds structure Target First Close
USD 40M (April 2016)
Target Final Close
USD 80M
Management Fee
2.5% during investment period 1.5% on total deployed capital after investment period until end-Y9
Carried Interest
20%
Investment Period
4 years
Fund Life
9 years
Kejora Star Capital II, L.P., a Cayman Islands exempted limited partnership (“Fund”)
Management Agreement
Kejora SEA Limited (“GP”)
LP
LP
LP
LP
….
Investment
Kejora Group Advisory (“Fund Manager”)
Kejora Investment Group Pte Ltd SPC(s) (Singapore, Hong Kong, Malaysia)
Advisory Agreement Investment
PT. Selaras Eka Agung (“Investment Advisor”)
Investees / Portfolios
Confidential | 5
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, Co-founder 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 A senior finance professional with 25 years of experience working at various international investment banks where he was involved in making principal investments both in Indonesia and abroad. His experiences includes: Executive Director / Indonesia Country Manager for NATIXIS Corporate and Investment Bank, Senior Vice President at Indonesian Bank Restructuring Agency (IBRA), GM Finance Astra Group, Executive Director for Canadian Imperial Bank of Commerce (Singapore), Citibank Jakarta (IB), M&T Bank, Buffalo NY and Bank Central Asia, New York City. Eri successfully concluded a number of cross border deals in M&A advisory (buy and sell sides) and fund raisings for major Indonesian private and sovereign credits. He was a Partner at Saratoga Asia Fund III. Eri holds MBA degree in Finance from State University of New York, NY.
... supported by additional operational team (IT, Finance, Accounting, Marketing, Design) of 10 specialists
ConďŹ dential |6
Kejora’s investments track record Kejora Fund I Investments and Performance
Q2 2014 Investment
~6.5x
Batch 1
Q2 2015 Investment
2015 Investment
Batch 2
~26x
720% IRR
~8.2x
Batch 3
Q2 2014
Q2 2015 438% IRR**
Q2 2016 ** **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.
ConďŹ dential |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
CHINA / JAPAN / KOREA USA EUROPE
Proven business model Proven business model
Proven business model Regional Accelerator
Regional Accelerator
Central Company Builder
ConďŹ dential | 8
Investment strategy: Hands on approach of company building and accelerating
Hands on value - add mentoring to ensure operational excellence & top acceleration
SEED
SERIES A
SERIES B
SERIES 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 ConďŹ dential | 9
Investment strategy: Strong focus in company building
VS Current investment outlook: There is an abundance of start ups that lack vision, exposure, technology, structure, and many are run by in-experienced and un-professional teams. These risks greatly exemplify the chances ofsuccess and the ability to scale up quickly.
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.
ConďŹ dential | 10
Company builder strategy: Optimized risk / return profile
“Early stage multiple potential at a growth stage risk”
Expected return
Kejora builder
B
early stage
A growth stage Potential risk
A
B Boosting returns Company Builder act as a co-founder and partner working hand in hand with the local startup
Risk reduction Startup level
Fund level Fund
Business model (proof-of-concept)
Local Advisor
Management team (global hiring of start up executives with local market expertise, To increased upside potential growth through low entry valuation
intensive coaching etc.) Market risk (rapidly growing emerging markets, local experts)
S1
S2
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: Compare 88 Group
Identification of promising ideas, market study
(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
Thailand
Philippines 12.93%
7.76%
Events, seminars
Scale up & internationalization to high-growth markets
Serial entrepreneur. Former private equity executive. Numerous software development awards. Co-founded Check24.de (then einsurance.com) Serial entrepreneur and technologist. 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%
Team & company setup, incubation & market testing
Office space
Experienced Team
Best proven business models
(Germany, estimated EV: USD ~1 billion)
International technology + know how
Mentors+ network
Company builder team
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.
CAGR ConďŹ dential | 12
Importing leading business models to high-growth markets
Risks involved in starting a business
Cost vs. Time to market
“Rocket Internet�
~80%
Risk
Business model
~50% Timing
Technology
Business model Technology
Execution
Execution
Market
Costs
Timing
Initial development
Kejora Company Builder
Strategic investors
Market
Initial development
Kejora Company Builder
Systematically reduce risks
Time to market
Reduce time to market and revenue generation
ConďŹ dential | 13
Importing leading business models to high-growth markets
Valuation Company builder
Company building
Standard investment
Bigger team (higher operational cost)
Smaller team (lower cost)
Faster acceleration, higher growth, bigger returns
Slower acceleration, startups constantly busy fundraising
Bigger shares of the company, more control
Smaller shares
Price adjustment Normal scenario
Price adjustments D
(Return)
High barrier to entry for competitors
Have to fight against more competitors
C B A
Less vulnerability towards bear or over-valued markets
Initial value of investment
Fundraising during bear or over-valued markets may have detrimental effects on startups
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.
ConďŹ dential | 14
Hands on acceleration approach Kejora fills in “Skill Gaps” & sets up A+ teams
Crucial skill gaps
Crucial skill gaps
0%
Marketing
Sales
Finance
Venture Partner / Expert
Skill level
0%
Product
IT
Operations
Kejora helps recruit fulltime Founder
100%
Additional Founder / Team
Marketing
Sales
Finance
!
Founder A
!
Founder B
Scalable IT
Conversion Optimization
SEO
Skill level
SEM
100%
Team Profile
Product
IT
Operations
Competence spectrum
Team Profile
! ! ! !
Founder A Founder B Venture Partner / Expert Additional Founder / Team
Competence spectrum Confidential | 15
Hands on acceleration approach: Service offering for portfolio companies through established ecosystem Central & local competent teams and partners offer comprehensive support
Project development Local Adaptations
Media for equity Revenue sharing
IT
SEO / SEM Affiliate marketing Display ads
Online Marketing
Marketing Local marketing Design & brand mgt.
Media Sales & Advisory
Startup/ Company B2B / B2C Sales
Direct sales Call Centers Sales support
Fundraising Strategic advice Access to network
Infrastructure Office space Office supplies
HR & Education Executive HR Recruiting Entrepreneur Training
Incubation and acceleration support thanks to in-house competence centers
ConďŹ dential | 16
Kejora’s approach is to be “Trusted Partner”
Local Families
Targets
Investment decision
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
Target mgt. team
salary + ESOP
equity
equity
Deal type Management type Exit strategy
Main Incentive
Execution
Operating team Role of original startup Technology & SOPs
Confidential | 17
Named as one of the most active VCs in Indonesia and Southeast Asia by TechinAsia and won several global business awards
M O U N TA I N K E J O R A The intro: Mountain Kejora Ventures is a venture investor and company builder for technology startups based in Jakarta, Indonesia as a joint venture with Mountain Partners AG (Zurich). We assist startup founders beyond just financial investment but work closely with the founding team to form and execute strategy, go to market & expansion plan for the region, adding tangible value to our portfolio companies and partners. ConďŹ dential | 18
Portfolio companies in Southeast Asia since 2014
NO. 1 FINANCIAL COMPARISON IN INDONESIA & PHILIPPINES Web ; compare88.com, cekaja.com & ecomparemo.com Launched: April 2014 Location: Indonesia + Philippines
NO. 1 CAREER PLATFORM IN INDONESIA Web : qareergroup.asia, qerja.com & jobs.id Launched: May 2014 Location: Indonesia + Malaysia TOP DIGITAL PERFORMANCE COMPANY Web : ydigital.asia Breakeven within less than 1 year Launched : July 2014 Location : Indonesia + Singapore
DIGITAL SOLUTIONS FOR SMEs Web : bdigital.id 3500 regtistered SME using the service Launched : January 2015 Location : Indonesia
FAST GROWING DELIVERY SERVICE IN INDONESIA (LAST MILE DELIVERY) Web : etobee.com Launched : September 2015 Location : Indonesia + Philippines
ONLINE MEDIA NETWORK WITH NETWORK OF > 100.000 WRITERS Launched : 8 portals in Dec 2015 ~1M visitors within 2 months from launch Location : Indonesia
FAST GROWING DATING APP Web : wavooapp.com ~2 million users, 35% month-to-month growth Launched : April 2015 Location : Indonesia
SECOND LARGEST C2C CLASSIFIED MARKETPLACE IN INDONESIA WITHIN 1 YEAR Web : jualo.com Launched :2014 Location : Indonesia ON DEMAND HEALTHCARE GROUP Web : tanyadok.com & prosehat.com ~1 million visitors Launched : June 2015 Location : Indonesia
ConďŹ dential | 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 ConďŹ dential | 21
Selected portfolio profile
Compare88 is a leading financial comparison site that caters
Qareer Group Asia is a synergistic Human Resource platform
towards the Southeast Asian market. The information that it
that addresses the quality and quantity aspects of recruitment that
offers helps increasingly demanding customers select and buy
targets to both employers and employees. Through Qerja.com
products and provides banks & insurance companies with cost
(user generated content platform), good quality candidates and
efficient acquisition channels.
traffic are funneled to its sister jobs portal: Jobs.id.
J.P. Ellis (CEO) Entrepreneur. Former Private Equity executive. Numerous software development awards. Fluent in Indonesian
Veronika Linardi (CEO) Founder of Linardi Associates (executive recruitment). Previously worked at Charoen Pokphand, CNN and PwC
Karl Knoflach Co-founder of Check24 – a leading financial comparison website in Germany with valuation of around USD 1 Billion
Stephen Kohar (COO) Stephen has profound experience in digital enterprise and was previously the Corporate Advisor for a jobs portal in Indonesia
Traction:
Traction:
Launched and signed over 70 top banks & insurance compa-
Leading jobs portal in Indonesia within 7 months of operation,
nies within 4 months of operation 1 million monthly unique visitors 1,000+ new orders received every day >USD 40 million gross application value / month
with over 33k active job listings per month More than 8,000 active employers Over 3.5 million monthly unique visitors
Company Presence:
Company Presence:
ConďŹ dential | 22
Selected portfolio profile
Jualo is a C2C marketplace that utilizes geo-search functions
Etobee is the Agoda for logistics; a marketplace where e-com-
to enable buying and selling of secondhand goods between
merce partners, businesses and individuals dispatch their delivery
users. Jualo facilitates not just information but an end-to-end
orders in real-time to Etobee’s network of professionals and
transaction process to enable users to bid, trade and purchase.
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:
Traction:
Sold more than USD100 million worth of merchandise since
Connected to >40 logistics companies
January 2014 >2.5 million monthly visitors
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
BDigital is a digital performance consultancy aimed at increasing
driven approach to create measurable and profitable digital
effectiveness and efficiency for SMEs. Bdigital has a complete
solutions and campaigns for corporate clients.
solution for offline SMEs to expand businesses to the online realm starting from generating websites, executing online marketing campaigns, and social media.
Boye Hartman (CEO) Marketing and mobile expert with 25 years of experience in sales, marketing, and advertisement
Jose Ricardo Santos (CEO) 4 years of international experience in Southeast Asia working in online businesses. Specialty in E-marketing.
Arne van Looveren (CCO) Led digital agencies in Malaysia and Indonesia. Experienced in forming client strategies and campaigns from scratch.
Traction:
Traction:
Within 3 months of operations, oversaw marketing budget of
First in market to launch a web app solution that enables
> USD1 Million Operational profitable Over 40 corporate clients
SME businesses to own affordable web apps. 3,500 registered SME using the service
Company Presence:
Company Presence:
ConďŹ dential | 24
Selected portfolio profile
ProSehat is an Indonesian online health e-commerce site
Wavoo is a mobile dating app that provides an easy, fun and
which enables customers to buy health products such as
anonymous way to find new friends, true love or even something
generic medicine, prescribed medicine, supplements, vaccines,
more without the need of having awkward encounters or fear of
and medical supplies. TanyaDok is a doctor / patient consulta-
rejection. Users remain anonymous until they both match their
tion platform that leads users to try ProSehat.
desires.
Dr. Gregorius Bimo, MD (CEO) Medical Doctor. 4 years as a doctor and 9 years of experience in digital health.
Yudhy “Domex” Mandey (CEO) Graphic designer with over 10 years of experience in the digital and technology industry globally
Dr. Agnes Susanto, MD (COO) Medical Doctor. 5 years as a doctor and 3 years of experience in digital health marketing.
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:
Traction:
2,000 affiliated doctors within sites
~2 million users
5,000 medicine and medical supply Hundreds of weekly orders ~1 million monthly unique visitors
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:
ConďŹ dential | 26
2014
opportunity window
Valuation
The investment opportunity window is shrinking
2012
2011
2009
2007
1997
faster & faster success curves
Time since launch
Speed and acceleration becomes increasingly important ConďŹ dential | 27
The investment opportunity window is becoming more competitive 2015
~USD 200B**
~USD 5B*
2015 +500M
2014
2014
2011
media 2010
fashion
travel
logistic
marketplace
2014
game
payment cosmetic
finance
human resources
2015
healthcare
education
dating
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 ConďŹ dential | 28
Kejora eco-sytem/network
Ideabox is a tech business incubator powered by a partnership with Indosat. Ideabox focuses in helping early stage startups in a 120-day acceleration program to build impressive products.
Founder Institute is a Silicon Valley based global incubator program which has created over 1,000 companies since 2009. Andi Zain has been actively directing the Founder Institute Jakarta chapter since 2011.
FinTech Indonesia Association was established in early 2015 as a platform to accommodate FinTech startups in Indonesia to disrupt the traditional financial sectors. It also serves as a bridge between the FinTech community and government.
Mobile Monday is a global community of mobile industry visionaries, developers and large corporates. It promotes cross-border business development through virtual and live networking events to share ideas, leading practices and trends from global markets.
ConďŹ dential | 29
Kejora ecosystem/network
Access to 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.
ConďŹ dential | 30
Kejora excellent network with stakeholder Kejora actively connects startups with important decision makers in the region enabling faster growth
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 ConďŹ dential | 31
Kejora ecosystem (Tech Center) Kejora Ventures ~2000 m2 of fully equipped workspace including meeting rooms & office amenities.
ConďŹ dential | 32
Contact
Sebastian Togelang st@kejorahq.com Eri Reksoprodjo er@kejorahq.com Andy Zain az@kejorahq.com
Wisma Barito Pacific Jl. Letjen S. Parman Kav 62-63 Jakarta 11410 Indonesia www.kejorahq.com
ConďŹ dential | 33
WWW.KEJORAHQ.COM