Latest Steve Chen News
Dec 18, 2021
Alpha JWC Ventures and AC Ventures have invested $10 million in Otoklix, an O2O digital solution for automobile aftermarket services in Indonesia. Surge from Sequoia Capital India; Prijono Sugiarto, former CEO of Indonesia’s automotive company Astra International; Steve Chen, co-founder of YouTube; and Google officials from XA Network were also in attendance. Otoklix hopes to increase its technology touchpoint with this new investment by launching its own O2O controlled flagship workshops around Indonesia. In this fast-increasing sector, servicing and repairing automobiles is still a lengthy and inconvenient operation. Visiting authorised dealers is expensive and time-consuming. Having automobiles repaired at individual businesses puts owners at risk of fraud, lack of standardisation, and poor after-sales support. Despite dominating 80% of the Indonesian market, many of these businesses still use pen and paper to conduct transactions, limiting growth and profitability. “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 cost. Simultaneously, workshops have limited access to information to conduct price comparisons for parts, sourcing needs, and suppliers’ credibility. This is a problem for all the 138 million automotive vehicles in Indonesia, a growing market that has been overlooked. This huge fragmentation in the market has a high potential for technological disruption,” said Martin Suryohusodo, co-founder and CEO of Otoklix. Otoklix, which launched in 2019, seeks to make car maintenance easier for drivers by allowing them to find services at any local recommended independent workshop and earn a warranty for any transactions made at an Otoklix partner workshop. Independent car workshops may use Otoklix’s customer relationship management (CRM) and supply chain management (SCM) solutions to boost their top line, margins, and operational efficiency. According to the company, over 1,900 active partnering workshops service 15,000 autos every month. Otoklix claims to have grown from 100 to over 1,900 partner workshops in the last year, serving more than 100,000 consumers annually.