Evermos Secures $30M Series B Funding - Indonesian Halal Commerce

Evermos Secures $30 Million Series B Funding to Expand Halal Social Commerce in Indonesia

Evermos, an Indonesian social commerce platform, is dedicated to empowering individuals with supplemental income opportunities through the operation of online stores without upfront capital investment. Simultaneously, the company aims to facilitate the growth of small brands, elevating them to national recognition. Today, Evermos announced the successful completion of a $30 million Series B funding round, spearheaded by UOB Venture Management’s Asia Impact Investment Fund II.

Investment Details and Participants

The funding round saw participation from several key investors, including IFC, MDI Ventures, Telkomsel Mitra Innovation (TMI), and Future Shape. Returning investors, Jungle Ventures and Shunwei Capital, also contributed to this significant financial injection.

Strategic Allocation of Funds

The newly acquired capital will be strategically deployed across several key areas. These include talent acquisition, the refinement of Evermos’ recommendation engine utilizing advanced AI technologies, and expansion into new geographical regions within Indonesia.

Reseller Network and Market Reach

Currently, Evermos boasts a network of 100,000 active resellers operating in over 500 Tier 2 and Tier 3 cities, predominantly located on the island of Java. The company has set an ambitious goal to increase this number to exceed one million resellers throughout Indonesia within the next five years.

Supply Chain and Product Offerings

Evermos collaborates with more than 500 brands, largely consisting of small and medium-sized Indonesian enterprises. The platform offers a diverse catalog encompassing fashion items, halal-certified health and beauty products, and a variety of food and beverage options.

Over the past two years, the company has experienced a substantial increase in transaction volume, growing by more than 60 times.

Founding and Motivation

Established in November 2018 by Ghufron Mustaqim, Iqbal Muslimin, Ilham Taufiq, and Arip Tirta, Evermos was born from a desire to address perceived shortcomings within the Indonesian retail landscape.

Addressing Retail Challenges

The founders identified issues such as complex distribution networks leading to inflated prices and the prevalence of counterfeit products online, which erode consumer trust in e-commerce platforms. Mustaqim explained that the team sought to resolve these problems through innovation in the social commerce model.

“Our approach empowers resellers to assist customers in selecting the most suitable products in a more streamlined and effective manner,” Mustaqim stated.

Targeting the Indonesian Muslim Market

Given that approximately 90% of the Indonesian population identifies as Muslim, Evermos strategically focuses on catering to this demographic. The company emphasizes the importance of product relevance to the Muslim market, ensuring adherence to standards such as halal certification and modest fashion guidelines.

“When we focus on the Muslim market, we are essentially addressing the needs of the vast majority of Indonesia,” Mustaqim added.

Reseller Model and Sales Process

Evermos distinguishes itself by not requiring resellers to maintain inventory. Instead, resellers leverage Evermos’ product catalog to market items to their personal networks – including family, friends, and neighbors – through platforms like WhatsApp and Facebook.

Each reseller is provided with a dedicated online landing page within the Evermos app, enabling them to share product links with potential customers. However, Mustaqim notes that the majority of sales are facilitated through direct messaging and chat interactions.

Logistics and Support Infrastructure

Evermos assumes responsibility for inventory management, logistics, and customer support. Similar to other social commerce startups in Indonesia, such as Super, KitaBeli, and ChiliBeli, Evermos concentrates on smaller cities where e-commerce adoption rates are comparatively lower due to factors like elevated shipping costs.

To mitigate shipping expenses, resellers frequently consolidate customer orders into larger batches. Products are typically dispatched from the brands’ warehouses via third-party logistics providers. Currently, Evermos is developing inventory analytics and establishing a network of warehouses to position products closer to its reseller base.

Revenue Sharing and Reseller Earnings

Brands typically remit a 30% commission on sales generated through Evermos, with the majority of this commission being distributed to the resellers. Top-performing resellers can earn approximately $200 USD per month, aligning with the minimum wage in many Indonesian provinces.

Reseller Training and Development

Recognizing that many of its resellers are new to online selling, Evermos provides comprehensive in-app training modules, supplemented by occasional offline training sessions. This training covers topics such as inventory curation, platform navigation, utilization of promotional programs, and effective product copywriting.

Future Expansion Plans

While Evermos has initially concentrated its efforts on Java, the company intends to extend its reach to other regions of Indonesia. Strategies for achieving its goal of one million resellers within five years include targeted advertising campaigns and a referral program that rewards resellers for onboarding new sellers.

Mustaqim believes that market saturation will not be a significant concern, as resellers typically specialize in a limited number of product categories, minimizing direct competition within local communities.