Danantara debuts with power move💪 Goku sets tone for China’s AI dominance 🌏 Indonesian startups with global ambitions 🚀
Dear subscribers,
Amid challenging business conditions, expanding to international markets has become a strategic move for founders to maintain growth. In this edition, we highlight the importance of setting your product or service for the global market from the very start.
But first, don’t miss this week’s key updates, from Indonesia’s sovereign wealth fund launch to significant investments in tech startups across the region.
Enjoy this week’s newsletter!
Best regards,
The DailySocial Team
🚨 What’s New in Indonesia's Startup Ecosystem
1. Indonesian newly elected President Prabowo Subianto will launch Daya Anagata Nusantara (Danantara), Indonesia’s sovereign wealth fund, on February 24, 2025. Danantara will oversee IDR10,000 trillion (US$630 billion) in assets, managing major SOEs such as Pertamina, Telkom, and BRI. Its goal: to boost efficiency, attract investment, and grow Indonesia’s economy by 8% annually. [Read More]
2. East Ventures and Korea’s SV Investment announced the first close of their East Ventures South Korea Fund. Backed by Korea Development Bank (KDB) and a top neobank, the fund will focus on Series A and B startups in Southeast Asia and South Korea, targeting investments between US$1 million and US$3 million. [Read More]
3. UK-based Libera Global AI has acquired a majority stake in Kartini Otomasi Indonesia, combining AI, blockchain, and retail expertise to transform consumer promotion and trade in emerging markets. The collaboration aims to improve supply chain visibility and support top FMCG brands. [Read More]
4. Green tech startup Noovoleum raised US$3 million led by Rigel Capital to expand UCOllect, a used cooking oil (UCO) recycling platform. After deploying 100 UCOllect Boxes in 2024, the company plans to scale to 1,000 units and expand into three other Asian markets by 2025. [Read More]
5. Circulate Capital appointed Dondi Hananto as Associate Investment Partner and Head of Indonesia. The firm supports plastic recycling and waste management solutions, with investments in companies such as Prevented Ocean Plastic Southeast Asia and Reciki, marking two successful exits in Indonesia. [Read More]
6. Australian Development Investments (ADI) committed US$8 million to AC Ventures’ Climate Fund, supporting renewable energy, electric mobility, and waste management in Indonesia. The partnership aims to cut carbon emissions by 10 megatons and accelerate the country’s transition to sustainable energy. [Read More]
7. Atome Financial, part of Advance Intelligence Group, received an US$80 million credit facility from BlackRock, InnoVen Capital, and EvolutionX to boost its BNPL and fintech services in Indonesia. This follows a previous US$100 million facility from EvolutionX last year. [Read More]
👏 What’s Exciting in the Regional Tech Scene
1. Sam Altman’s tough week continues—after Elon Musk’s bid, ByteDance launches Goku, an open-source AI model for generating high-quality images and videos. Goku challenges OpenAI and complicates U.S. efforts to control AI access. But for businesses, it lowers barriers and opens new opportunities, making AI literacy essential. Goku uses advanced rectified flow transformers to create smoother, more accurate visuals with fewer glitches. As an open-source model like Llama and DeepSeek, it drives down content production costs, just like AI did for coding and writing. The real value isn’t in creating content but in how businesses apply it. In marketing, the focus will shift from generating ideas to selecting and executing the most effective ones, making AI’s success all about practical application.
2. Klook, Asia’s leading travel experiences platform, secured US$100 million in funding led by Vitruvian Partners to expand its reach and serve the growing market of next-generation travelers. Celebrating its 10th anniversary in 2024, Klook has redefined how travelers book experiences, contributing US$7.2 billion in GDP and supporting over 219,000 jobs in Asia-Pacific. With international arrivals in the region expected to hit 762 million by 2026, Klook is set to capture the rising demand for experience-focused travel.
3. Two senior partners, Shailesh Lakhani and Abheek Anand, are leaving Peak XV, one of the world’s largest venture capital firms, according to sources. Their departures come months after Peak XV cut its fund size by over US$400 million and reduced management fees, reflecting caution in India’s venture market. Their exits follow Peak XV’s split from Sequoia Capital in mid-2023 to avoid U.S.-China-related conflicts. Despite the changes, Peak XV remains the largest VC in India and Southeast Asia, managing over 400 portfolio companies, including more than 50 unicorns.
4. Gushcloud International has teamed up with Azure Capital to launch the Azure-Gushcloud Entertainment Finance Fund, aimed at providing structured financial support for digital creators. The fund will help creators expand brand partnerships, content monetization, and licensing opportunities globally. Accredited investors can participate with a fixed annual return of 12.5%, paid quarterly.
5. Amazon has expanded its operations in Singapore with the opening of its second office in the central business district, which will also serve as the Asia-Pacific headquarters for Amazon Web Services (AWS). The new AWS APAC Hub will accommodate up to 3,000 employees from over 100 teams. This expansion follows Amazon’s announcement in May 2024 to invest an additional S$12 billion (US$8.8 billion) into Singapore’s cloud infrastructure between 2024 and 2028. The investment is expected to contribute S$23.7 billion to Singapore’s GDP by 2028 and support 12,300 full-time equivalent jobs annually.
🚀 What’s Next: Global Market from the Day One
In mid-2024, DailySocial sat down with the team at Happy5, a rising SaaS platform for business workflow management. The timing couldn’t have been more exciting—Happy5 had just acquired SugarOKR, a Singapore-based startup, to boost its expansion into the U.S. market. According to CEO Doni Priliandi, the decision was strategic: mid-sized U.S. tech companies are far more prepared to adopt their workflow solutions.
And here’s why this move makes perfect sense: The U.S. dominates the global SaaS market, holding 60% of the total market share, followed by Europe (22%) and Asia-Pacific (16%). For startups looking to scale fast, it’s clear where the opportunities lie.
But here’s the catch—many Indonesian startups face a tough reality. Their primary market share often comes from outside the country. Telemedicine and insurtech, for example, are led by players from China, the U.S., and Western Europe. Even in the consumer AI space, the global market distribution favors regions with stronger purchasing power and higher adoption rates.
Indonesia’s digital economy is still growing 🚀, especially in sectors like e-commerce and online media. But for industries that have hit saturation or are bogged down by local competition, founders are starting to think differently. The question is no longer, “How can we replicate global giants like Amazon or Airbnb for the local market?” but rather, “How can we build something new and globally relevant—maybe a more user-friendly and affordable Office365 for SMEs?”
Why Global Expansion Should Be on Your Radar
There’s a bigger game at play here. Expanding into international markets offers:
Access to a broader customer base 🌐
Mitigation of business risks, such as local economic slowdowns or regulatory challenges
Higher valuations and increased investor interest 💰
The chance to become first movers in emerging global markets
Building a product with global potential from day one isn’t just about increasing revenue. It’s about positioning your startup for long-term success, no matter where your customers are. And with today’s technology and the rise of borderless businesses, the opportunities are endless.
So, what’s next for Indonesian startups? Maybe it’s time to set your sights beyond local borders and go global maker from the day one? ✈️