Indonesia’s Crypto Boom🚀, Sea & J&T’s Big Milestone💰, More Startup Shakeups📉
Dear Subscribers,
It seems that not a single week passed by without any startup meltdown news, which is troubling. But behind the scene, investor-led movements are structuring protection mechanism to further impose governance, standard reporting and other counter-measure to prevent another eFishery happening in the region.
But it’s not all bad news. Since the regulatory shift of crypto oversight to Indonesia’s Financial Services Authority (OJK), transaction volume has surged by 104% as of January 2025. Beyond this, the past week has seen several notable developments in Indonesia’s startup ecosystem that you won’t want to miss. We've curated the highlights in this week’s newsletter.
We would also like to take this opportunity to wish our Muslim subscribers a blessed Ramadan. Additionally, if you haven’t yet accessed the Indonesia Startup Report 2025, it is now available for download, offering a comprehensive overview of the country’s startup landscape.
Happy reading!
Best regards,
The DailySocial Team
🚨 What’s New in Indonesia’s Startup Ecosystem
Here are some of the latest updates from Indonesia’s digital business landscape, as covered by DailySocial.id:
Indonesia’s OJK reported that Indonesia’s crypto market saw a sharp increase in transaction value, reaching IDR 44.07 trillion (US$2.8 billion) in January 2025 with almost 1400 crypto assets readily and legally tradable, with 19 licensed platforms facilitating transactions. [Read more]
Southeast Asia’s leading climate tech venture builder, Wavemaker Impact, has launched Zentide—a startup converting tropical seaweed into biostimulants and biofertilizers. With $525K in seed funding, Zentide aims to address soil degradation, synthetic fertilizer dependency, and rising greenhouse gas emissions, positioning seaweed as a sustainable alternative. [Read more]
Malaysia-based flexible housing provider LiveIn has officially acquired KoolKost, adding 27 properties across six Indonesian cities to its portfolio. CEO Keek Wen Khai emphasized that this move strengthens LiveIn’s presence in Indonesia and benefits both property owners and young renters. [Read more]
SM+, the digital infrastructure arm of Indonesia’s Sinar Mas conglomerate, has begun construction of SMX01, a next-gen data center in Jakarta. The US$300M project, developed in partnership with Korea Investment Real Asset Management (KIRA) and LG Sinar Mas, is designed to meet the surging demand for AI-powered infrastructure across Southeast Asia. Operations are set to begin in H2 2026. [Read more]
SMX01 data center building design / SM+ Apple has opened its fourth Developer Academy in Tuban, Bali, welcoming over 100 students to its inaugural class. The move aligns with Apple’s broader investment commitments in Indonesia, including a $160M pledge to initiatives like the Apple Software Innovation and Technology Institute and R&D collaborations with universities. This follows Apple’s recent regulatory clearance to sell its newest iPhone models in Indonesia after meeting local content requirements (TKDN). [Read more]
Indonesia’s Parliament (DPR) recently held discussions with Gojek, Grab, and Maxim on proposed transport laws. Key concerns include motorcycle ride-hailing legalization, platform recognition in regulations, driver status clarity, and fare standardization. These talks follow recent protests by ride-hailing drivers demanding better policies, particularly regarding holiday bonuses. [Read more]
👏 What’s Exciting in Regional & Global Tech
1️⃣ Sea Group posts double-digit growth in 2024
Sea Limited reported US$16.8B in revenue (+28.8% YoY), with net profit soaring to US$447.8M. CEO Forrest Li remains optimistic about continued profitable growth in 2025. Key drivers:
Shopee: GMV exceeded US$100.5B (+28% YoY), while e-commerce revenue hit US$12.4B (+37.9%).
SeaMoney: Loan disbursements surged 63.9% to US$5.1B, with revenue reaching US$2.4B (+34.6%).
Garena: Free Fire's active users rose 16.9% to 618M, despite a 12% revenue decline.
2️⃣ J&T Global turns profitable for the first time
J&T Global Express posted its first-ever annual profit, with revenue reaching US$10.26B (+15.9% YoY) and parcel volume hitting 24.65B (+31%). Notable highlights:
China: Parcel volume grew 29.1% to 19.8B, turning EBIT positive at US$150M.
Southeast Asia: Market share rose to 28.6%, with EBIT surging 48.9% to US$300M.
Middle East Expansion: Revenue from the region climbed 76.1% to US$580M.
3️⃣ Grab expands into offline grocery retail with Everrise acquisition
Grab has acquired Eastern Grocer, parent company of Malaysian supermarket chain Everrise, from Navis Capital Partners. This acquisition strengthens Grab’s footprint in East Malaysia, adding 19 premium supermarkets to its portfolio. By integrating Everrise, Grab aims to enhance its grocery delivery capabilities and digitize supermarket operations, reinforcing its long-term strategy in online-to-offline commerce.
4️⃣ Darwinbox raises US$140M to challenge HR tech giants
India-born HR SaaS startup Darwinbox secured US$140M from KKR and Partners Group to fuel its U.S. expansion, competing with Rippling and Deel.
60% of revenue now comes from outside India, with the U.S. being its fastest-growing market.
Backed by Microsoft, Salesforce, Sequoia, and Lightspeed.
New HQ in Singapore, signaling global ambitions.
Darwinbox’s rise underscores the "SaaS-ification of Asia," positioning itself against HR leaders like SAP and Workday.
🚀 What’s Next: Fintech’s Struggles in Agriculture & Education
Recent allegations of fraud at Crowde highlight persistent issues in agriculture-focused fintech lending—following eFishery’s underperformance and previous failures like Angon and TaniHub. Meanwhile, fintech lending in education remains challenging, with pivots (Cicil, Pintek) and shutdowns (KoinPintar, DANADidik).
Why is fintech lending struggling in these sectors?
📌 1. Market Readiness vs. Actual Demand
In 2024, only 4.5% of Indonesia’s $5.8B productive lending went to agriculture, while education received just 0.41%.
Agriculture still lacks digital inclusion, limiting access to reliable credit scoring.
Education financing isn’t culturally ingrained due to existing government and private scholarships.
📌 2. Risky Growth Strategies
Fintech’s push for rapid expansion at all costs often overlooks risk management.
Limited credit data in agriculture & education increases default risks, as digital penetration remains low in these sectors.
So, is this the end of fintech lending in these verticals? Not necessarily—but a reset is needed.
🔹 Stronger Governance: Compliance and transparency must be non-negotiable, with tighter oversight.
🔹 Realistic Growth Strategies: Adoption must be timed with market readiness and financial literacy initiatives.
🔹 Stricter Credit Scoring: While this may reduce lending volume, it ensures higher-quality loans and sustainability.
Fintech innovation in agriculture and education still holds promise—but only if built on sound fundamentals.