Fresh Funding, Safer Internet Rules, and Impact Investing Gains Momentum 🇮🇩🚀
Dear Readers,
The weekly newsletter RISE by DailySocial is back! This week, we bring you a range of captivating updates, from startup funding news to the latest regulatory developments. We also have an exclusive insight into impact investing, based on our interview with one of Indonesia's active angel networks investing in this sector.
Warm regards,
The DailySocial Team
🚨 What’s New
Here are some of the key stories covered by DailySocial News over the past week:
Skor Technologies, a credit scoring platform startup, secured a US$6.2 million pre-series A funding round. Led by Argor Capital with participation from QED Investors and Saison Capital, this brings the company’s total funding to over US$12 million. Initially offering Skorlife to help consumers understand their credit scores, Skor Technologies shifted focus in March 2024 to Skorcard, a digital credit card service developed in collaboration with Bank Mayapada. This product aims to address the low credit card penetration in Indonesia, which remains below 3%. [Read more]
Skor Technologies Founder: Karan Khetan, Ongki Kurniawan, and Kush Srivastava / Sources: Skorlife Bythen, a virtual character platform for creators, announced a US$5 million seed funding round. Led by Vector Inc. (Japan, TYO: 6058) and Skystar Capital, the round also saw participation from East Ventures, BEENEXT, OSK, AppWorks, and angel investors such as William Tanuwijaya (Co-founder, Tokopedia) and Ryan Lee (Co-founder, Pinkfong Company). Founded in 2024, Bythen allows users to generate creative content, live-stream, and transform digital characters into AI-based “Bytes,” opening up new opportunities for online presence and monetization. The founding team includes seasoned entrepreneurs who previously built Magnivate (acquired by WPP in 2012) and Bridestory (acquired by Tokopedia in 2019). [Read more]
MAKA Motors, a local electric motorcycle developer, debuted its first product, the MAKA Cavalry, and secured additional funding from Openspace. Launched last week at an on-the-road price of US$2190 / IDR38,5 million (Greater Jakarta Area), the Cavalry features locally developed technologies such as Intercellar batteries, Revium motors, and Osiris controllers. Openspace, which initially participated in MAKA’s US$37.6 million early-stage funding in mid-2023, has increased its investment. [Read more]
MAKA Cavalry as debut product of MAKA Motors / Sources: MAKA Digital consumer bank Superbank is reportedly planning an initial public offering (IPO) on the Indonesia Stock Exchange later this year, aiming to raise US$200–300 million. The IPO could value the company at US$1.5–2 billion. In mid-2024, Superbank’s key investors—Emtek, Grab, Singtel, and KakaoBank—contributed an additional US$73 million. [Read more]
Two state-owned banks launched a joint investment fund for proptech startups. PT Bank Tabungan Negara (Persero) Tbk (BTN) and PT Mandiri Capital Indonesia (MCI / Bank Mandiri’s CVC arm) announced a strategic partnership through the “BTN Fund.” This venture capital initiative aims to drive digital transformation in Indonesia’s housing ecosystem. After receiving approval from the Financial Services Authority, the BTN Fund is set to invest in startups focused on housing, construction, fintech, software technology, and ESG sectors. [Read more]
Exclusive Interview: Exploring Inspigo's Transformation from a Podcast Platform to an Upskilling Service. Inspigo has evolved into a leading player in upskilling, leveraging artificial intelligence to offer the innovative Inspigo AI Roleplay service. This solution is highly effective in enhancing soft skills, particularly for professionals, as it is also marketed through B2B channels. Read the full interview: click here.
👏 What’s Exciting
Komdigi’s Efforts to Regulate Social Media and AI for a Safer Digital Environment
The Ministry of Communication and Digital Economy (Komdigi, formerly Kominfo) is preparing to release regulations aimed at creating a safer digital space for children. These regulations will govern internet access and mobile phone usage for minors, focusing on content filtering to shield them from harmful materials such as pornography and violence.
A Joint Ministerial Decree (SKB) will set out specific guidelines to ensure child-friendly internet use and impose penalties on platforms failing to comply. Additionally, the government is drafting ethical guidelines for AI development, which will later be elevated to formal government regulations. This move reflects the administration's commitment to balancing technological advancement with societal safety.
The eFishery Unicorn Scandal Unfolds
The scandal surrounding Indonesia’s aquatech unicorn, eFishery, continues to make waves. Investigations revealed financial irregularities dating back to 2018 during its US$4 million Series A funding round. These included dual bookkeeping, revenue inflation, and round-tripping through shell companies.
The whistleblower report during eFishery's US$200 million Series D round in 2023 exposed these issues, significantly damaging the company’s reputation. Patrick Walujo, Founding Partner at Northstar Group—an early investor in eFishery—publicly criticized the governance failures, stating:
“It’s a little embarrassing and a shame on those managing eFishery. It’s clear that this was staged and systematic—very shocking.”
This scandal underscores the importance of robust governance and transparency within Indonesia’s startup ecosystem to maintain investor trust and ensure sustainable growth.
🚀 What’s Next: Impact Investing in Indonesia
The rise of impact investing in Indonesia has been a significant trend over recent years, reflecting a shift from the traditional "growth at all costs" approach to a focus on sustainability and meaningful change. Nicolo’ Castiglione, Managing Partner & Investment Committee at Bali Investment Club (BIC), highlighted key opportunities and challenges shaping this movement.
Opportunities in Impact-Driven Sectors
Green technology, waste management, agritech, and edtech are leading sectors offering solutions to critical social and environmental challenges. With global frameworks like the UN's Sustainable Development Goals (SDGs) being adapted to Indonesia's local context, these sectors are positioned to create scalable and sustainable impacts.
Challenges in Scaling Impact Investing
However, early-stage funding remains a significant hurdle, particularly in a market still recovering from high-profile failures like eFishery. Limited exit strategies, such as IPOs and acquisitions, further constrain growth. Startups must also navigate Indonesia’s predominantly informal economic structure, which presents unique operational and market challenges.
Optimism for the Future
Despite these obstacles, BIC and other stakeholders remain optimistic. Nicolo’ emphasized the launch of Archipelago VC (AVC) in 2025 as a pivotal initiative to mobilize local investor participation in impact-driven ventures. Events like Angels & Founders provide a platform for collaboration and knowledge-sharing between startups and investors.
"With increased awareness around sustainability and a focus on collaboration, impact investing has the potential to drive transformative changes for Indonesia's communities and environment," Nicolo’ stated. He further highlighted the importance of integrating informal sectors into the broader ecosystem to unlock the country's full potential.
By addressing governance, fostering collaboration, and aligning with global sustainability goals, Indonesia's startup ecosystem can navigate current challenges and emerge stronger, more resilient, and more impactful.