Baby Steps
    Category: Entrepreneurs By : Andella Romelia Read : 1582 Date : Sunday, April 10, 2016 - 07:17:27

    Ahmad Zamroni / Forbes Indonesia

    Every year five million new babies are born in Indonesia—a figure almost equal to the entire population of Singapore—and that figure tends to grow about 1.5% every year. This huge market of newborns translates into gigantic demand for baby products. The market in Indonesia for baby products is about Rp 90 trillion, according Indonesian researcher Sigma. The biggest component of that is baby formula, about 27%, followed by diapers and clothes, together about another 25%.

    Ferry Tenka, 31, was well aware with this potential when establishing website Bilna in 2012 in Indonesia with two others. Starting with nearly 100 baby products and only seven employees, he has grown Bilna to now include 45,000 products on the site and about 120,000 registered users. On a given day, Bilna processes about 2,000 orders, with average spend of Rp 400,000—roughly Rp 1 billion daily from its transactions on average.

    Now Bilna is tapping a bigger market by acquiring in late February Thailand based company Moxy, rebranding the combined company as Orami, with a focus on women’s products. At the time of the merger, Orami also announced it had raised $15 million from new investors, including Facebook co-founder Eduardo Saverin. Other investors included Sinar Mas Digital Ventures (SMDV), Ardent Capital, Gobi Partners, and Velos Ventures. “We believe there are big opportunities in e-commerce in the women’s market in Indonesia,” says Ferry. “From our previous experience, we have found that 70% of customers are women and we believe this market has potential.”

    Ferry, who has an electrical engineering degree from Purdue University, is an e-commerce veteran. He cofounded with Jason Lamuda, the Indonesian Groupon clone Disdus, which was later acquired in 2011 by Groupon. Ferry then served for a year as chief executive of Groupon Indonesia, before he left to co-found Bilna in the same office where he had founded Disdus.

    After the acquisition, PT Bilna will be the surviving entity with Ferry and the two other co-founders Jason Lamuda and Eka Himawan holding majority ownership. However, Moxy’s old chief executive, Frenchman Jérémy Fichet, will become the new chief executive of Orami. Jason sits as a passive investor and is running his own business BerryBenka, while Eka serves as the group chief financial officer in Orami.

    With this partnership, Orami is hoping to go regional, to capture more of the $2.4 trillion female products market in Southeast Asia. Ironically, Moxy had already entered Indonesia in 2015. “We had our sights on Indonesia, and with Bilna being number one in the mothers and babies category, we knew that they will be the perfect partner. The experienced team and operational strength of Bilna was very complementary from ours, and as we both had similar visions for the women positioning and demographic, it was a perfect match for us,” says Jeremy. “The combination of our investors and regional management will strengthen Orami, so that we have the ability and strength to achieve a strong position in Southeast Asia women’s market.”