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Elevenia plans aggressive growth
E-commerce marketplace Elevenia, which is jointly run by telecommunications operator PT XL Axiata and South Koreaâs SK Planet Ltd
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-commerce marketplace Elevenia, which is jointly run by telecommunications operator PT XL Axiata and South Korea's SK Planet Ltd., has targeted its transaction value to reach Rp 1.1 trillion (US$83.5 million) this year, a four-fold increase from last year, thanks to growing demand for online transactions.
CEO James Lee said Elevenia would likely achieve the target if the number of sellers or products sold in the marketplace grew by two or three fold.
'If the number of merchants and products are two to three times higher than the number we have as of February, then we will achieve the target,' he said during Elevenia's first anniversary on Tuesday.
Indonesia's rapidly growing middle class has spurred online transactions as more people get connected with the internet in Southeast Asia's largest economy at has a population of 250 million.
As of February, Elevenia had 20,000 merchants and 2 million listed products, meaning that it aimed to have a total of 40,000 to 60,000 merchants by year-end.
'We posted Rp 250 billion in total transaction value last year and we aim to make it Rp 1.1 trillion this year,' Chief financial officer (CFO) Lila Nirmandari said, adding that the total transaction value as of February reached Rp 60 billion.
XL deputy CEO Dian Siswarini said previously that XL expected Elevenia's revenue to soar by five-fold compared to last year, which would mean that the top line is expected to reach Rp 17.5 billion.
Elevenia ' which is identified as PT XL Planet ' recorded Rp 3.5 billion in revenue last year, according to parent company XL annual financial report.
To foster its growth, Elevenia will expand to other major cities outside Greater Jakarta, CEO Lee said.
'In this second year, we are starting to think about how we can expand our services outside the Greater Jakarta area,' he added.
In an attempt to expand its presence outside of Jakarta, Elevenia would first strengthen its grip in a number of major cities outside Jakarta to eventually help the marketplace expand further in the cities' respective suburbs and outer areas, he explained.
Lee added that big cities, such as Medan, Palembang, Surabaya and Yogyakarta, were potential targets.
Around 90 percent of transactions in Elevenia currently came from Greater Jakarta, while the remaining 10 percent come from outside.
'We will surely enter markets other than Jakarta ['¦]. We will leverage on the network that XL and JNE have,' CFO Lila said.
Acknowledging the boom in online transactions, the government has planned to issue an 'e-commerce roadmap' in the next three to six months to provide clear guidelines on logistics services, payment gateways and taxes for the e-commerce industry.
JNE chief marketing officer Agus Hartono Wijaya said Elevenia was currently among his firm's top five customers in terms of shipments.
Elevenia, which was initially established in 2013 and officially launched in March last year, has a total of $60.8 million invested to develop its business.
Both XL and SK Planet injected $18.3 million in initial investments for Elevenia. The two then earlier this year injected additional funds totaling $24.2 million, with 50 percent coming from each company.
Lila said the additional funds would mainly be used to support Elevenia's sales and promotion activities as well as platform enhancement.
