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Cakap's performance soars in first half of 2023 as pandemic ends
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Cakap Leadership Team.
I
ndonesian education technology (edtech) company Cakap has recorded robust performance in the first half of 2023, with revenues doubling in the second quarter compared to the same period last year (yoy), an outcome consistently achieved since 2020.
Cakap is built around three pillars: language, upskill and business. The language pillar currently contributes the largest share of revenue to the company, with a growing percentage of students opting to learn Japanese, Korean and Mandarin.
“Cakap performed well in the second quarter of 2023, experiencing robust growth from all segments and recording positive EBITDA. The revenue surged two-fold (yoy) and is on track to meet the company's annual budget,” said Jonathan Dharmasoeka, Chief Financial Officer (CFO) of Cakap.
As the COVID-19 pandemic ends, Cakap has implemented several business strategies in pursuit of the company's goals for the second half in of 2023. These strategies are aligned with reports from the World Bank, which indicate a period of learning loss among Indonesian elementary school students, especially in language, of up to 10.8 months, caused by the pandemic.
Based on this data, Cakap is optimistic that a blended learning approach, combining online and offline learning, will become a popular trend.
To manifest the strategy and students that are behind catch up, Cakap launched the Cakap Kids Academy, an initiative that combines offline language learning with several facilities designed to enhance soft and motor skills and create a fun learning experience for children aged 4-12. The company plans to expand its offline learning facilities in several major cities across the archipelago.
In addition, Cakap recently introduced the Cakap English Standardized Test (CEST), an English language testing system curated and developed by Cakap's internal education team, equivalent to other existing international standardized tests such as TOEFL. Since its launch at the end of the first quarter of 2023, CEST has been adopted by several formal learning institutions as a measure of language proficiency.
"14 institutions have adopted the CEST, and 5,000 students have been scheduled for the test," Jonathan added.
CEST offers several advantages, such as flexibility, as the test can be taken anywhere on a personal device, while the validity of the results uses a combination of human and artificial intelligence (AI) supervision. Other advantages include flexibility in timing, more affordable costs and faster results.
Based on an analysis by the global agency Euromonitor, Indonesia's education industry is projected to continue growing, with the report indicating that the turnover of the Indonesian education market will reach Rp 898 trillion (US$ 58.9 billion). The turnover is expected to experience an 8 percent compound annual growth rate (CAGR) from 2021 to 2026, with adult and other education showing high growth rates. This indicates that the industry remains attractive for business.
Earlier this year, Cakap secured fresh funding from MDI Ventures and Heritas Capital. The C1 series funding has resulted in a valuation of Cakap at over US$ 100 million.
As of the first half of 2023, Cakap has four million students, with an app rating of 4.9 in the App Store and 4.8 in the Google Play Store. The platform, founded by Tomy Yunus and Yohan Limerta, remains committed to implementing Sustainable Development Goal (SDG) objectives, such as quality education, decent work and economic growth and reduced inequality. To date, Cakap has empowered more than 2,000 teachers and served 38 provinces in Indonesia.
