Putting the myth into perspective

• Unicorn, a term used for “privately held start-ups with valuations of at least US$1 billion”, was discussed in a recent piece by Digital Edge.
• The mythical animal represents the rarity of such successful ventures, but the Southeast Asian region has seen its fair share of unicorns in startups like Grab, Bukalapak and more.
• According to the article, most unicorns are tech companies, which “Malaysia has no lack of”. So where is Malaysia’s unicorn?

• Managing partner at 500 Startups Khailee Ng echoed several other industry players interviewed in that achieving the unicorn status “should not be the end goal”. Unicorns should ultimately give back to the industry by acting as a role model for the local startup scene and attracting attention from investors and governments to create a healthier ecosystem.
• “This will create more ambition within the pool of investors, who may start investing in the country’s top tech founders with more conviction. We also want to see a ripple effect from founders or employees of the companies giving back to the ecosystem,” Khailee said.
• He added, “For instance, the group of former PayPal employees and founders started or invested in renowned companies like LinkedIn and Yelp. The founders of our portfolio company Bukalapak have also created their own fund and serve in the top positions of the national telecommunications company, with the aim of giving back to and bringing up the tech ecosystem in Indonesia. If Malaysia can’t produce even one home-grown unicorn, it will never be taken seriously as a tech market.”
• To enable homegrown startups to continue growing locally and regionally, the Malaysian government has offered incentives through agencies such as Cradle, Malaysian Debt Ventures and Mavcap (Malaysia Venture Capital Management Bhd).
• Read the full story here.

A decade in the making

• 500-backed Bukalapak celebrated its 10-year anniversary by releasing a highlight of its journey over the past decade.
• How has the e-commerce platform fared in “creating a fair economy for all”?

• Focusing on the lower and middle income classes, the startup saw “significant growth of MSME (Micro, Small, and Medium Enterprise) players” and has served more than 6 million online sellers as well as 100 million users.
• Mitra Bukalapak, an app that allows offline kiosks to connect with Bukalapak’s distributors to resell to customers who don’t have access to the Internet, has served 6 million users to date.
• Accelerated by the pandemic, the average growth of virtual products such as phone credits, data packages, and bill payments jumped by more than 60%.
• On its B2B segment — served by BukaPengadaan that acts as a procurement platform for MSME users — buyer and seller growth increased by 48% and 32% respectively from January to August 2020.
• Rachmat Kaimuddin, CEO of Bukalapak said, “We are optimizing our platform to break through the gap in economy, infrastructure, and supporting financial inclusion in Indonesia. We want to create an impact on society by continuing to develop a digital ecosystem that is fair for all.”
• Congratulations Bukalapak on closing a fruitful decade!

Boosting Indonesian borrowers

• 500-backed fintech platform Kredivo announced it has secured a debt facility of up to US$100 million.
• This marks the largest debt facility in the startup’s history, and “probably the largest such facility in [the Indonesian] region”.
• Kredivo’s next move? The company will use the funds to grow and further diversify in the loans disbursed to borrowers.

• Run by FinAccel, Kredivo is the company’s flagship “buy now pay later” solution, a process simplified by a 2-click checkout system. Co-founder and CEO Akshay Garg recently shared his future plans for Kredivo in a podcast.
• “We have a mission to serve 10 million under-banked Indonesian customers with low-cost credit over the next few years,” the company said.
• Congratulations to the Kredivo team!

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500 Startups is a venture capital firm on a mission to discover and back the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. In Southeast Asia, 500 Startups invests through the pioneering 500 Southeast Asia family of funds. The 500 Southeast Asia funds have backed over 240 companies across multiple sectors from internet to consumer to deep technology. It continues to connect founders with capital, expertise and powerful regional and global networks to help them succeed.

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