JAKARTA (TheInsiderStories) – Indonesian beauty e-commerce and social platform Sociolla, has announced that it is closing a major funding of US$12 million, led by EV Growth. Participating in the round as well are istyle Inc. and one major institutional investor from Singapore.
The company said that these funds will be used partly to develop their technology team for its newest platform, SOCO. Focusing on the user experience, the platform will integrate Sociolla and Beauty Journal to meet the women’s needs with a more optimal, relevant and personalized experience.
Other of part of this investment fund will be used for marketing of beauty brands distributed by Sociolla. Sociolla will also work with beauty brands that are popular overseas and interested to enter into the Indonesian market.
Currently, there are more than 150 brands available on Sociolla’s website with seven leading beauty brands from Asia and Australia have directly signed a distribution agreement with Sociolla.
Founded in 2015 by John Rasjid, Christopher Madiam, and Chrisanti Indiana, Sociolla focused on e-commerce business in Indonesia offering a range of authentic legal-certified beauty products, from makeup, skin care, hair care, tools to fragrance.
Indonesia venture capital, East Ventures has been supporting Sociolla since 2015 through seed funding after seeing the ability and readiness of Sociolla to win the beauty tech category in the country.
“Through this additional funding, we want to strengthen Sociolla’s position as the leading beauty tech company in Indonesia supported by its strategic partnership with global player, istyle,” said Wilson Cuaca, parner at EV Growth in an official statement on Thursday (17/5).
Following Series A funding from Venturra Capital in November 2015 and Series B funding in January 2017 in partnership with istyle Inc., Japan’s largest beauty platform owner and operator, Sociolla has grown and worked closer together with istyle.
The collaboration with istyle gives access to 14 million reviews for beauty products from www.cosme.net and the largest beauty website from the US, www.makeupalley.com, which was acquired by istyle last year.
Shinichiro Hori, Partner at EV Growth, said, ”From the view point of market opportunity, we believe beauty sector is very promising. Beauty tech is proven by istyle in Japan and support from iStyle will be fruitful for the future of Sociolla. We’re excited to cooperate with leading beauty tech company, Sociolla, in this region and we’d like to provide a lot of consumer tech’s learnings from Japan to grow together.”
Today, make-up is increasingly becoming part of women’s lifestyles, supported with a strong female population now over 130 million in Indonesia.
Currently, cosmetic products have become a primary requirement for women who are the main target of the cosmetics industry. In addition, along with current development, the cosmetics industry is also beginning to innovate on cosmetic products for men and children.
With the rapid trend of digital marketing, many producers have used the online platform such as Facebook and Instagram to promote their products and hire celebrity with a high reputation as brand ambassador.
Seeing the potential of the domestic cosmetic industry, the Indonesian government placed this industry among its priority industries in its National Development Plan for Industry up to 2019.
Minister of Industry said the domestic cosmetics industry has grown by 153 companies by 2017, bringing the total players to more than 760 companies. Of the total, 95 per cent of the national cosmetics industry is small and medium industry players and the rest are large scale industries.
EV Growth is a new fund established on the initiative of East Ventures, Sinar Mas Digital Ventures and Tokyo based venture capital YJ Capital
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