Wavemaker SEA Fund II pulls in US$5 million from IFC

Wavemaker, IFC
Wavemaker SEA Fund II pulls in US$5 million from IFC

Wavemaker, IFC

International Finance Corporation (IFC), the investment arm of the World Bank Group has committed US$5 million to venture capital firm Wavemaker’s latest investment vehicle SEA Fund II.

Based in Singapore, SEA Fund II is on the overall Wavemaker’s fifth fund and the second Southeast Asia-focused vehicle that will target ventures related to B2B and B2B2C operations in the Philippines, Malaysia, Thailand, and Indonesia.

Aside from IFC, the latest fund is also sponsored by a US$15 million anchor investment by Wavemaker Partners III L.P., a limited partnership formed in the United States as well as North American venture capital investor Tim Draper.

The 58-year old investor who co-founded Draper Fisher Jurvetson (DFJ) and Draper Associates, is known for his investments in some of the most renowned tech companies in the world, including Hotmail, Baidu, and Tesla.

The fund manager of Wavemaker SEA Fund II is Wavemaker Pacific Partners which is primarily owned by Paul Santos, the Managing Partner at Singapore and Eric Manlunas and David Siemer, the Managing Partners at Los Angeles.

“The fund has already been deployed to about 40 companies,” said Paul Santos. “In total, the firm is hoping to hit 80 startups, injecting seed to pre-series A fundings.”

Wavemaker Partners is among the active technology investors in the region and has 10 portfolio companies which count Indonesia as a key market. The company reportedly has at least five successful exits in the last two years including Luxola and Pie.

Launched in 2003, Wavemaker has made investments in more than 54 companies. Following this investment, the dual-headquartered company based in both Singapore and Los Angeles will now manage more than US$150 million in assets under management (AUM).

On the other hand, IFC has been increasingly active in the venture funding space. It has made capital commitments to venture funds in the region through its IFC Startup Catalyst program. Just last week, IFC has invested us$7.5 million in EMIA’s fund targeting Cambodia, Laos, and Myanmar.

Member.id raises seed funding to build customer loyalty in Indonesia

Member.id raises seed funding to expand business in hospitality industry
From left: Member.id co-founders Marianne Rumantir and Robert Tedja

Indonesia’s rewards and loyalty platform, Member.id said today that it has secured an undisclosed seed funding led by East Ventures with participation from Ismaya Group, the firm’s first corporate client.

The capital will be used to drive growth in the company’s product development, team expansion, and extending its business concept to a number of clients in other sectors, including the hotel and travel business.

In fact, Member.id adopts a business model similar to Aimia, a reward and loyalty program management for Canadian retail consumers. It provides Indonesian firms a tailored loyalty program solution to help increase consumer retention.

The platform acts as an intermediary for both businesses and members of its customer base, providing consulting services to program design which can help turn cost centers into profit centers and drives an increase in repeated sales.

“Retaining customers is 5 to 10 times less expensive than acquiring a new one,” said CEO and Co-founder of Member.id Marianne Rumantir. And she also has the statistics to back it up.

Ever since Member.id took over and redesigned the Ismaya Lifestyle Card Loyalty Program into a tier-based points system in late 2016, the company’s members have grown more than 300 percent within 6 months.

However, at present, the problems lie with customers in Indonesia. As they have a tendency to be loyal to discounts instead of being loyal to a brand, and complicated loyalty programs are not helping. This is also the reason why most businesses focus on making quick sales.

“But what they don’t realize is that retaining customers will actually cost them even more in the long run,” Marianne added. To solve this issue, the business suggests better insights into evolving customer behavior by collecting data on their target market behavior.

“It’s been difficult to find a loyalty platform with a holistic approach in Indonesia,” said Wilson Cuaca, the Managing Partner of East Ventures. “Every merchant is in their own silo and consumers struggle to remember every loyalty’s program’s benefits. We hope to change this and Member.id’s team is in the right position to do so.”

Member.id is not the only startup in Indonesia that provide loyalty programs to improve retention rates, another Indonesian startup Pomona also focuses on bridging offline shopping activities through reward pointing via mobile apps.