Indonesian O2O automotive startup Otoklix raises $10M Series A funding
(ASEAN Startups) Otoklix, an online-to-offline (O2O) digital solution for automotive aftermarket services in Indonesia, announced Friday it has raised $10 million from Alpha JWC Ventures and AC Ventures.
Sequoia Capital India’s Surge, and angel investors including Indonesia’s largest automotive conglomerate Astra International Ex-Chief Executive Officer Prijono Sugiarto, YouTube Co-founder Steve Chen and Google Executives in XA Network, also joined the round.
Otoklix said in a statement, with this fresh funding, it aims to improve its technological touchpoint with the establishment of its own O2O managed flagship workshop throughout Indonesia.
Founded in 2019, Otoklix bridges the gap between automotive vehicle owners and Indonesia’s fragmented independent car workshop sector, transforming the vehicle maintenance experience for consumers and equipping workshops with business software solutions and procurement savings.
“We believe that transparency and trust is the biggest issue in the market. Car owners struggle to understand where to take their car to be fixed and how much the service should really cost. Simultaneously, workshops have limited access to information to conduct price comparison for parts, sourcing needs, and the credibility of suppliers,” said Martin Suryohusodo, Co-Founder and Chief Executive Officer of Otoklix.
“This is a problem for all the 138 million automotive vehicles in Indonesia, where it is a growing market that has been overlooked. This huge fragmentation in the market has a high potential for technological disruption,” he added.
According to the statement, in the past year alone, Otoklix has grown from 100 to over 1,900 partnered workshops, providing services to more than 100,000 customers annually. With such progress, Otoklix is on a growth trajectory to become the largest and most trusted aftermarket service network in Indonesia — Southeast Asia’s largest market with a projection of 20 million cars on its roads in the next five years.
“Indonesia is home to 17 million cars and auto servicing is a vital part of the industry. However, there’s not much that has been done to create a better service experience for users and to empower non-franchised workshops,” said Jefrey Joe, Co-Founder, and General Partner, Alpha JWC Ventures.
“Through its all-in-one mobile application and its integrated ecosystem of manufacturers, distributors, retailers, and workshops, Otoklix provide answers to challenges faced by customers and workshops in one go. We are excited to join forces with Otoklix’s strong team to build the best company and product for the market,” he added.
According to the statement, servicing and fixing cars is still a long and cumbersome process in Indonesia. Visiting authorized dealers involves high costs and long queues while getting cars fixed at independent workshops can expose car owners to fraud risk, lack of standardization, and poor after-sale service. Despite controlling 80 percent of the total market in Indonesia, many of these workshops still manage transactions with pen and paper, restraining growth and margins.
For vehicle owners, Otoklix simplifies vehicle maintenance, allowing users to discover services at any recommended independent workshop nearby and receive a warranty for any transactions at an Otoklix partner workshop. For independent car workshops, Otoklix provides powerful customer relationship management (CRM) and supply chain management (SCM) solutions to increase topline, margin, and operational efficiency.
“The massive auto-servicing industry is estimated at twice the size of annual auto sales at $21 billion yet largely made up of traditional, small-scale workshops,” said Adrian Li, Founder and Managing Partner, AC Ventures.
“Otoklix’s technology solution empowers these businesses with customer relationship management (CRM) and enterprise resort planning (ERP) systems that save costs and deliver superior customer service. Martin and team bring together strong execution experience within the specific domain expertise to make this very promising team and business to be an investor in,” he added.
Otoklix’s progress and potential have also attracted strategic individual investors with industry expertise. Prior to this round, Otoklix has also garnered support from GK Plug and Play, Kenangan Fund, Lentor Ventures, and Noble Star Ventures.
“We envision Otoklix to become the automotive partner of choice for vehicle owners in Indonesia, throughout the vehicles’ lifetime period, by ensuring a strong customer-brand throughout our tech-enabled ecosystem. Our ecosystem and our technology are our strongest assets, which no other automotive companies have done so in Indonesia. We are off to a great start and we believe that we’re on the right trajectory to become the market leader here,” added Martin.
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