Serving the Underserved
    Category: E-Conomy By : Shintya Felicitas Read : 398 Date : Friday, February 09, 2018 - 13:53:39

    Ahmad Zamroni / Forbes Indonesia

    Kioson’s website says it is a startup established in 2015 with the dream to “enable everyone in Indonesia to go online.” The company, whose full name is PT Kioson Komersial Indonesia, is an online-to-offline (O2O) platform, providing various services to Indonesia’s untapped masses who have not yet done much online. Kioson’s mobile app, for example, can allow those without a bank account to shop online, and pay for their purchases at local neighbor kiosks. It also offers bill payments online, micro-lending, money transfer and phone credits. It plans to be a partner with Laku Pandai, the government’s branchless bank program, to offer banking services, without the need to open an account at a physical bank.

    This company is also unique: it is the first local tech startup to list on the IDX, in October 2017. “People want to invest in a startup but don’t have the access,” explains Kioson Chief Executive Jasin Halim, 52. The IPO raised Rp 45 billion from the public, equal to 23% of the firm, which was used primarily for the acquisition of Narindo Solusi Komunikasi, an aggregator of electronic vouchers and digital services. For the offering, the stock was oversubscribed more than 10 times at an offering price of Rp 280. In the first month, IDX suspended Kioson shares from trading twice, because of the unusual market activity: its share price jumped nearly 10 times compared to its initial offer, and now trades around Rp 3,000. “When Kioson joined the stock market, everybody wanted to be involved,” says Jasin.

    Commissioner Roby Tan, 44, the founder of Kioson, says Kioson’s initial capital was around $5 million, and now, based on its current stock price, the company is worth about $14 million. According to its latest financial report, the company’s total assets are Rp 38.5 billion, while revenues reached Rp 75 billion with a net loss of Rp 8 billion. Kioson earns revenue by charging a fee for each transaction, whether a fixed fee (Rp 2,000 for electricity bill, Rp 6,000 for money transfer, and so on), or a variable e-commerce fee, where Kioson takes a 30% cut from any revenues. Jasin explains that the reason he and the management team preferred an IPO immediately rather than seeking funds from venture capital, as most other startups do, was to be different. “We are a disrupting company, why don’t we disrupt the fundraising pattern as well?” says Jasin.

    According to Jasin, the IDX and the Financial Authority Services (OJK) fully supported Kioson to do an IPO, adding it was not as complicated as what most imagine. He even recommends other startups follow Kioson’s move, as it is a good alternative to traditional fundraising. However, he notes that it’s important to clearly demostrate that the business model works, especially because Kioson is now the first startup on the stock market, and will be a bellwether for others which might follow. “We have to guarantee our sustainability, and that we a profitable investment for investors,” Jasin says, who is a veteran in the tech business. He got his BS in computer science in 1987 and an MBA in 1990, both from Monash in Australia. He was chief executive of PT Mail Order Indonesia, a marketing catalogue company, from 1992 to 1998.

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