Indonesian- based automobile marketplace TiinTiin.id announced that it has raised over US$2.5 million in a seed round.
The investment round was led by CEO Rolf Monteiro, Singapore-based Amand Ventures and PT Luminary Media Nusantara.
Launched in April 2020, TiinTiin.id has so far booked over USD 7 million in annualized GMV or more than 1,200 transactions.
The startup will deploy the proceeds to accelerate its growth into new verticals, including the motorcycle segment in the third quarter and used car business-to-business and business-to-consumer transactions in the fourth quarter.
The company also plans to expand to other Southeast Asian markets in 2021.
TiinTiin.id is led by Rolf Monteiro, founder and former CEO of BeliMobilGue, another used car marketplace. “I joined TiinTiin.id with the realization there is a Blue Ocean opportunity out there waiting for us. Our aim is to capture at least 10 per cent market share at maturity,” Monteiro said in a statement.
Monteiro, who is a serial entrepreneur in digital car sales platforms, including BeliMobilGue, RediCar, and AnyCar, targets for TiinTiin.id a 10% share of the total Indonesian used car market in the medium term. The platform will include motorcycles in Q3 2020, as well as a B2B and B2C used-car market in Q4 2020.
“COVID-19 has made new car buyers re-consider, while the young-car market has spiked,” said Monteiro. “Some have decided to turn their backs on public transport, others might need to swap their assets to ensure sufficient liquidity.” It has led to a spike in used car sales this year, which aligns with a larger global trend that saw used cars sales up 106% in May versus April and 13.3% year-on-year, according to CEO Rolf Monteiro.
“With our buyer financing options, multi-vertical approach and expansion into used motorcycles, we are prepared to react to the current state of the market and meet the increased demand for used vehicles during these uncertain times,” he added..
According to Ken Research, second-hand car sales in Indonesia are expected to reach over 4.2 million by 2023. The current law in Indonesia does not allow the vehicle to be re-registered after an average ownership period of 10 years. Used car sales in the country have dropped, particularly after the government applied large-scale social restrictions in April.
BeliMobilGue, which yesterday rebranded to OLX Autos, reported that it sold 90% less during the partial lockdown. However, CEO Johnny Widodo said that there has been a recovery in June.
“78% of those who responded to our survey said that they only delayed their car purchase, as they needed the budget to support personal or family needs,” said Widodo.
Venture capital firm Amand Ventures has also invested in Indonesian jewelry e-commerce site ORORI, fintech company Ayopop, and education and fintech company Pintek. Amand had earlier exited its investment in BeliMobilGue.
