<aside> 📌 We will regularly update the data or the current condition of this report. So, make sure you visit this page periodically. Stay tuned for the latest updates!

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<aside> 🚀 About DS/X Ventures

Founded in 2022, DS/X Ventures is an early stage investment firm investing in Indonesia’s finest founders. We invest in companies creating solution in a large growing market size, powered by strong founding team and has shown early traction.

DS/X Ventures is a part of DailySocial.id network, an innovation enabler that has media, research and corporate consultancy company with innovation programs such as hackathons, incubators, accelerators and startup funding marketplace.

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🚁 Executive Summary

  1. The B2B e-commerce market in Indonesia is experiencing rapid growth, with the market estimated to be worth USD 21.2 billion and projected to reach USD 104 billion, driven by a compound annual growth rate (CAGR) of 37.4%.
  2. The shift from B2C to B2B e-commerce provides opportunities for micro, small, and medium enterprises (MSMEs) to connect directly with business suppliers, addressing supply chain challenges and facilitating transparent pricing and faster logistics.
  3. The B2B e-commerce market in Indonesia is expected to reach $30 billion by 2025, presenting significant potential for startups and various categories of B2B solutions, including SaaS, fintech, logistics, healthcare technology, cybersecurity, AI, human resources, and energy technology.
  4. Key opportunities in the Indonesian B2B market include delivering seamless omni-channel experiences, optimizing supply chain processes, tapping into the potential of rural areas and micro-enterprises, and offering transparency and efficiency through B2B marketplaces.
  5. Challenges in the B2B landscape include sourcing, delivery, and managing working capital, technological integration, security and privacy concerns, regulatory compliance, currency volatility, and financial risk management.

In addition, the SaaS segment is projected to reach $409.40 million in revenue in 2023, with a CAGR of 11.58%, while the B2B FMCG industry in Indonesia is experiencing digital transformation, presenting opportunities for faster data validation, omnichannel growth, data security, privacy protection, and flexible financing solutions tailored to the needs of MSMEs.

🏦 Industry Background

The B2B landscape in Indonesia is rapidly growing and evolving, particularly in the realm of e-commerce. The Indonesian e-commerce market is estimated to be worth USD 21.2 billion, with a compound annual growth rate (CAGR) of 37.4% expected to reach USD 104 billion. During the COVID-19 pandemic, there has been an increase in B2B transactions in online marketplaces as people have shifted towards online purchasing. Bank Indonesia recorded that e-commerce transactions in Indonesia reached Rp 401 trillion in 2021 and are expected to increase by 31% to Rp 526 trillion in 2022.

The rise in online shopping has led to a shift in the business model from B2C (business to customer) to B2B (business to business). This shift provides opportunities for micro, small, and medium enterprises (MSMEs) to directly connect with business suppliers. The B2B marketplace in Indonesia introduces solutions and innovations to address supply chain challenges, such as stock supply gaps, price transparency among intermediaries, and logistical limitations, which facilitates transparent pricing and faster logistics for MSMEs.

The B2B e-commerce market in Indonesia was valued at $1.5 billion in 2018 and is projected to experience a remarkable compound annual growth rate (CAGR) of 50-55%, reaching a staggering $30 billion by 2025. The momentum of digitalization in SMEs is a key factor opening up significant potential for B2B Commerce development in Indonesia and Southeast Asia. However, the B2B landscape also faces several challenges such as sourcing, delivery, and managing working capital. Integrating systems, security and privacy, regulatory compliance, and currency volatility are also significant challenges. Despite the challenges, the B2B landscape in Indonesia continues to grow, and many startups have emerged to cater to the growing market.

There are several categories of B2B startups, including but not limited to: