Editorial Team

Jeff Bezos, founder of the world’s largest e-commerce company, Amazon.com, has just made his second investment in the Indonesian startup ecosystem with Lummo, a direct-to-consumer (D2C) Software-as-a-Service (SaaS) startup that provides a Shopify-like solution. Through his personal investment firm, Bezos Expedition, Bezos joined the latest Series C investment round of approximately US$80 million, together with Tiger Global and Sequoia Capital India. Bezos’ participation in this funding round aims to strengthen Lummo’s ambition to accelerate the business growth of entrepreneurs and brands in Indonesia and the rest of Southeast Asia.

Globally renowned for his commitment to customer service and as a pioneer of e-commerce, Jeff Bezos is a believer in building lasting businesses. Lummo’s D2C model reflects this as it offers entrepreneurs and brands the opportunity to build robust long-term competitive businesses. By creating strong customer relationships, with no third party sitting in the middle, entrepreneurs will be able to scale up their business and provide additional value to their customers.

“We are honored to have Jeff Bezos’ support in this Series C investment round as we prime our business for exponential growth over the coming months and years. The investment will strengthen Lummo’s efforts to further build on our direct-to-consumer product offerings, and deliver greater value to entrepreneurs and businesses in Indonesia. We hope to accelerate their business growth and maximize operational efficiency using our SaaS model,” said Krishnan Menon, CEO and Founder of Lummo. “Backing of this scale underlines our belief that Indonesia and Southeast Asia are emerging as the next great destinations for tech investment.”

Southeast Asia’s Internet sector continues to develop rapidly, with Indonesia as the leading market. According to the latest Google Temasek report, the gross merchandise value (GMV) – or total purchases via online— of Southeast Asia’s internet economy is poised to reach over USD 300bn by 2025, with Indonesia’s expected to reach USD 124bn from 44bn today. It should be noted that major gaps in digital and financial inclusion remain, exacerbated by the pandemic. Thus, there remain opportunities for young innovators and startups to address these challenges, tap into their potential, and enable the country to accelerate economic growth.

The D2C approach that Lummo enables has been recognized as a competitive advantage by many entrepreneurs and brands due to its sustainable impact on their business growth. In addition, the D2C solution also helps small businesses unlock more potential in the challenging e-commerce environment. Armed with in-depth and local experience of the market, Lummo is optimistic about creating solutions and technologies that are truly capable of solving business problems faced by entrepreneurs.

Lummo’s flagship product, LummoSHOP, helps entrepreneurs and brands with analytics and retargeting capabilities to drive repeat orders using their customer’s records and purchase history. Other robust features include chat commerce, catalog integration, custom domains and websites, multi-platform management, personalized features for branding, among others. With the multiple platform management feature, entrepreneurs and brands will be able to use the software-as-a-service to manage all their customer orders from multiple shopping platforms, making LummoSHOP the one place from where they can manage all their online commerce operations. The service will also help them create their own official customized website, giving them the power to build their own unique brand and identity.

“We find that Indonesian entrepreneurs are ambitious and growth-oriented, focusing on building their own local brands. Hence, we have developed LummoSHOP as a D2C SaaS stack that shines the spotlight on entrepreneurs and brands, enabling them to discover all possibilities to accelerate their business. It is a business model that seems to be working as evidenced by LummoSHOP’s GMV growing eleven times over the period December 2020 to December 2021,” concluded Krishnan.

Last December, LummoSHOP’s previous incarnation, TOKKO, won the Google Play Users’ Choice Award 2021 in the ‘preferred application by users’ category, proving that the company’s solutions to help entrepreneurs grow their businesses have been well received by users.

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