Indonesia, although remote to most people in the United States, is in fact, the 4th most populous country in the world. The interesting thing is although 70% of the people there have smartphones, 60-70% don’t have bank accounts. This simple phenomenon has paved the exponential rise of eWallets and if you look at unicorn valued companies in Southeast Asia and Indonesia, you’ll see all of them with eWallets. eWallets enable the purchase of goods and services, in effect, eCommerce or mCommerce.
In addition, the Indonesian start-up revolution has been able to facilitate the growth of four unicorns. The four unicorns are Go-Jek, Traveloka, Tokopedia, and Bukalapak. The Indonesian E-Commerce Association (idEA) projects that the country will soon have two decacorns – a term for start-ups valued at more than $10 billion.
In short — an eWallet, sometimes called a digital wallet, is a secure place that contains one or more currency purses. Your shoppers can fund an eWallet in several different ways. Once funded, shoppers can use eWallets online to buy goods or services.
This theme, with huge rounds of funding and valuations, will translate to at least several IPO’s in the US and give rise to M&A activity of smaller companies that have the tech, market share or operate in niche areas that the big ones aren’t currently in.
As an example – SEA Ltd. (NYSE: SE) has a market cap of $14.45 billion and IPO’d a year and a half ago. The stock price has risen from $10 to $36 in the first half of this year and they will still lose $1bb this year.
We had a chance to chat with Brent Suen of Weyland Tech to gain a better understanding of how Weyland Tech is trying to revolutionize the way small and medium-sized businesses can easily create mobile applications. Moreover, what makes Weyland Tech interesting is its ability to flawlessly execute and the depth of experience that its management and board has. They have been able to build a business from the ground up, over five years, without institutional funding in today’s highly competitive landscape, which is highly notable. At this point, the Company is expanding and should they accomplish an uplisting to NASDAQ, this will enable them to raise funding readily.
A new trend that we have been seeing has been with platforms that are offered as a service (PaaS). PaaS essentially is a cloud computing model in which a third-party provider delivers hardware and software tools — usually those needed for application development — to users over the internet. A PaaS provider hosts the hardware and software on its own infrastructure.
Weyland Tech recently announced that a pilot program for the rollout of its CreateApp Platform as a Service (“PaaS”) is underway in Indonesia.
The Company is initiating the pilot program to gauge market interest and determine the best business model to reach the major telco partner’s 6 million micro-small business customers. Matthew Brent, Head of Corporate Development and Product Strategy, said, “The feedback we’ve received from preliminary focus groups has indicated strong interest in the capability of our platform’s marketing and advertising tools to generate revenue among the micro-small business community, which also has the potential to create new opportunities for us to cross-sell to affinity groups and through the AtoZPay retail network.”
Weyland is a global provider of mobile business applications. The Company operates a Platform-as-a-Service (“PaaS”) software used on mobile ‘smartphones’. The PaaS platform offers a mobile presence to Small-to-Medium-Sized-Businesses (“SMB’s”) in emerging markets, with partnerships on 3 continents and growing.