The Indonesian auction-based marketplace for used cars and motorcycles, TiinTiin.id, has closed its first seed round led by the founder and CEO of SEAutoGroup and TiinTiin.id Rolf Monteiro, Indonesian VC Amand Ventures, and PT Luminary Media Nusantara. The round is valued at USD 2.5 million.
Launched in April 2020, TiinTiin.id has so far booked over USD 7 million in annualized GMV or more than 1,200 transactions.
“COVID-19 has made new car buyers re-consider, while the young-car market has spiked,” said Monteiro. “Some have decided to turn their backs on public transport, others might need to swap their assets to ensure sufficient liquidity.” It has led to a spike in used car sales this year, which aligns with a larger global trend that saw used cars sales up 106% in May versus April and 13.3% year-on-year, according to him.
Monteiro, who is a serial entrepreneur in digital car sales platforms, including BeliMobilGue, RediCar, and AnyCar, targets for TiinTiin.id a 10% share of the total Indonesian used car market in the medium term. The platform will include motorcycles in Q3 2020, as well as a B2B and B2C used-car market in Q4 2020.
According to Ken Research, second-hand car sales in Indonesia are expected to reach over 4.2 million by 2023. The current law in Indonesia doesn’t allow the vehicle to be re-registered after an average ownership period of 10 years. Used car sales in the country have dropped, particularly after the government applied large-scale social restrictions in April.
BeliMobilGue, which yesterday rebranded to OLX Autos, reported that it sold 90% less during the partial lockdown. However, CEO Johnny Widodo said that there has been a recovery in June.
“78% of the those who responded to our survey said that they only delayed their car purchase, as they needed the budget to support personal or family needs,” said Widodo. He further said that some customers reconsidered to buy a new car and plan to buy a used car instead.