Jakarta, May 25, 2023 – Small and medium enterprises and micro-entrepreneurs in Indonesia are set to thrive under a new partnership announced today between International Finance Corporation (IFC), IFC Emerging Asia Fund (EAF) and Evermos that will help support growth and job creation in Indonesia.
IFC, a member of the World Bank Group, and EAF, managed by IFC Asset Management Company, invested $5 million and $16 million respectively in equity to finance Evermos, Indonesia's leading social commerce platform. IFC joins various existing and new investors in this funding round with close to $40 million raised. This investment is seen as bolstering growth opportunities for Micro, Small, and Medium Enterprises (MSMEs) as well as micro-entrepreneurs, many of whom are women, who are an essential part of Indonesia's economy—contributing around 61 percent and 97 percent to the country's GDP and total workforce, respectively.
Ghufron Mustaqim, Co-Founder and CEO of Evermos said, "We have stayed true to our commitment to supporting local brands since day one. In the process of solving the logistical issues Indonesian brands face due to the country's unique geographical and economic challenges, we have realised that brands face diverse challenges beyond distribution. We will thus continue to harness innovation to connect local brands and customers in lower-tier cities more efficiently. This achievement reflects the trust of our investors in executing our mission and their dedication to empowering vulnerable communities by providing them with a sustainable and flexible source of income through our connected distribution network and services for commerce."
Indonesia has one of the fastest-growing digital economies in Southeast Asia. The pandemic has only accelerated the pace of digital adoption, particularly in driving the rapid growth of the country's e-commerce sector— making it the ninth-largest e-commerce market in the world in 2021 with a value of $43 billion and expected to reach $104 billion in 2025.
According to McKinsey, 85 percent of Indonesian online merchants are resellers or distributors. Despite occupying a large share of the e-commerce market, these MSMEs remain underserved and under-resourced by retailers and platforms. This investment aims to support Evermos' growth initiatives and business expansion in Indonesia, providing a vital boost to help strengthen MSMEs segment and digitalization, which is more critical than ever to help spur growth of the country's digital economy.
"Scaling up tech-enabled social commerce platforms such as Evermos can spur economic growth and make a huge contribution towards unlocking access to markets, creating jobs, and lifting prosperity for millions of MSMEs and entrepreneurs, many of whom are women and are the backbone of Indonesia's economy," said Randall Riopelle, IFC Acting Country Manager for Indonesia and Timor-Leste. "Our investment in Evermos will not only promote shared prosperity and financial and digital inclusion, but it will also contribute significantly to further advance the rapidly ever-growing digital economy in Indonesia."
"We are pleased to invest in Evermos and support their continued growth in the bourgeoning social commerce sector in Indonesia," said Inderbir Singh Dingra, Chief Investment Officer, EAF. "Evermos' commitment to expanding the reach of SME brands to a wider cross section of consumers through micro entrepreneurs provides strong alignment with IFC and EAF on impact and growth."
Evermos connects SME brands to end-consumers via resellers through its tech-based platform. This allows resellers to gain access to a large base of SKUs and income opportunities, while SMEs gain access to a broader market through Evermos' vast network of resellers. To date, Evermos has provided income opportunities for over 160,000 active resellers, predominantly women resellers, who are selling more than 1,600 local brands across Tier 2-4 cities in Indonesia.
In 2022, Evermos won a special commendation from the 2022 FT Awards in the gender finance category. The company was shortlisted out of a pool of 219 applications for their work in investing in women-led businesses and supporting women entrepreneurs.
"Telkomsel Mitra Inovasi is delighted that the synergy between Telkomsel and Evermos continues to flourish. Being our partner in social commerce, Evermos is spearheading a suite of services that empower individuals from vulnerable communities. By providing the people with the opportunities and tools to make a sustainable living, Evermos has proven the impact they have made on the Indonesian economy. As a venture fund that believes in the power of technology and innovation to transform lives and create a positive change in society, Telkomsel Mitra Inovasi looks forward to continuing the work with Evermos to drive inclusive development and growth across Indonesia. We hope our continued partnership will enhance our market reach and foster mutual benefits," said Mia Melinda, CEO of Telkomsel Mitra Inovasi.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
About AMC
IFC Asset Management Company (AMC), a department of IFC, mobilizes and manages capital to invest in businesses in developing and frontier markets. Created in 2009, AMC provides leading institutional investors with unique access to IFC's emerging markets investment pipeline and investment expertise, while providing positive development impact in the countries in which it invests. Investors in AMC managed funds include sovereign wealth funds, pension funds, and development finance institutions. It has raised over $10 billion across 13 investment funds covering equity, debt, and fund-of-funds products. For more information, visit www.ifcamc.org.
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About Evermos
Evermos is a social commerce platform that empowers local brands and underserved communities by providing a connected distribution network and commerce services focusing on curating Sharia-compliant products. It is a one-stop platform that provides local brand partners with comprehensive commerce solutions, and resellers with required tools for success including training, helping to level the playing field for all resellers regardless of their gender, educational background, geographical location, or income level.
Founded in November 2018, Evermos has built Indonesia's largest reseller-based social commerce network with more than 160,000 active resellers across Indonesia and 1,600 brand partners.
Evermos has garnered significant industry accolades to date, such as Forbes Asia 100 to Watch in the Asia-Pacific region, the UN Women 2022 Indonesia Women Empowerment Principles (WEPs) Award, and inclusion into the Endeavour Entrepreneur global network. Evermos is a member of the World Economic Forum's Global Innovators Community, an invitation-only group of the world's most promising start-ups and scale-ups that are at the forefront of ethical technological and business model innovation.
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