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Aiming to expand within the Indonesia this year, Fabelio wants to move into Southeast Asian markets soon
Indonesian online home furniture retail startup Fabelio has raised $9 million in its ongoing Series C round, the company announced in a statement today. The raise has grown the startup’s total capital pool to over $20 million, it said.
The Series C1 was led by Taiwanese venture firm AppWorks, startup ecosystem enabler Endeavour’s co-investment vehicle Endeavour Catalyst and Telkom Group-backed MDI Ventures, with participation from existing investor and Indian impact investor Aavishkaar Capital, the statement added.
Additionally, it noted that AppWork Partner Jessica Liu will be joining Fabelio’s Board of Directors, and that the company is “actively seeking” investors from Southeast Asia and China to close its Series C by the end of the year.
The company told Jumpstart that the funding will help the company expand its presence in its home market Indonesia as well as Southeast Asia.
“Our immediate focus is to build out our service area to the whole island of Java and Bali by the end of this year,” a company spokesperson told Jumpstart via email. “Early 2021 we will also start to expand to other major cities in Sumatra, Kalimantan & Sulawesi.”
“Of course, our ambition is to bring Indonesian products to other parts of the world at one point- starting with Southeast Asia,” the spokesperson added.
The company aims to increase market share this year by expanding its engineering team and online marketing efforts, enhancing its product development and operational efforts, and bolstering its local supply chain, it said in the statement.
Launched in 2015, the startup has grown to three offices and 20 experience centers in Indonesia, and recorded 82% year-on-year growth as of 2019, it added.
“Our main focus will be to improve our product categories and improve delivery times. On top of that, we will expand our sphere of influence across Indonesia by opening new warehouses and experience centers in new cities,” CEO and Co-founder at Fabelio Marshall Tegar Utoyo said in the statement.
Utoyo noted in the statement that more U.S. and Chinese companies are entering the Indonesian market, creating “opportunities for global trade and manufacturing” for Fabelio.
The company spokesperson explained that due to the U.S.-China trade war, China-based manufacturers are relocating their businesses to neutral markets such as Indonesia, and U.S. retailers are looking to source from Indonesia as well.
“These dynamics help increase the capabilities (automation, reliability, quality, consistency, professionalism) of local manufacturers from which Fabelio benefits already,” the spokesperson said.
In addition to furniture delivery, Fabelio also provides a free interior design consultancy services for its B2B customers. The company had previously raised $6.5 million in a Series B round in 2018, and aims to become profitable by 2022, the statement said.
“Over the last couple of years, the trend has been crystal clear: the contribution of online sales in every vertical has been increasing in Indonesia: be it electronics, fashion, groceries or furniture. This trend has been massively accelerated due to the COVID-19 pandemic,” Co-founder at Fabelio Christian Sutardi said in the statement.
The company recorded peak online sales with figures surpassing those from Indonesia’s major ecommerce shopping event Harbolnas 12.12, he continued.
“As businesses are turning digital, it is very important to blur the lines between physical and digital, maintain efficiency with data, and tackle the relevant market with a highly scalable business model to gain the market lead,” Head of Investments at MDI Ventures Winston Adi said in the statement.
He added that Fabelio is well-positioned to “create a digital innovation in the retail industry.”
Header image courtesy of Fabelio