Startup Kata.ai Raises Funding and Enters MSME Digitalization Business
Tech startup Kata.ai received series B funding from the Trans-Pacific Technology Fund (TPTF) and MDI Ventures. This startup also created a special platform for Micro, Small and Medium Enterprises (MSMEs), named QIOS.
The company has focused on targeting the corporate and government segments in the last three years. This year, starting to target MSMEs through QIOS. “This is so that businesses can expand their sales network and improve their customer shopping experience,” said Kata.ai Co-Founder and CEO, Irzan Raditya, quoted in a press release, Wednesday (25/11).
QIOS is a social commerce platform or online trading based on social media. MSMEs can take advantage of artificial intelligence (AI) technology to automate product sales on WhatsApp, Instagram, and Facebook Messenger.
Kata.ai embeds an application programming interface alias application programming interface (API) so that the platform is connected to social media. Irzan is optimistic that the technology can help MSME players boost transactions during the corona pandemic.
QIOS is Expected to Help Develop MSME Businesses
“The sales decline even reached 70 percent,” he said. “We hope, QIOS can help them grow their business with the help of AI and automation.” The business model chosen by social commerce is because it is considered potential. Based on research from McKinsey, the transaction value or gross merchandise value (GMV) of this sector in Indonesia is predicted to be US$ 25 billion in 2022.
In addition, chat applications such as WhatsApp are used by more than 125 million people in Indonesia. This allows MSME players to target more consumers through QIOS. The QIOS platform is also connected to digital wallet applications such as OVO, GoPay, LinkAja and DANA. In addition, online delivery platforms such as GoSend and GrabExpress.
Irzan also mentioned that apart from obtaining Series B funding, this year Kata.ai was also selected as one of the 5 startups in Indonesia appointed to be part of the National AI Strategy Task Force by the Ministry of Research and Technology / National Agency for Research and Innovation in developing AI technology innovation and implementation in Indonesia.
Kata.ai is currently also trusted by more than hundreds of companies of various scales, from large companies such as Telkomsel, Indosat Ooredoo, Bank BRI, Pertamina, Blue Bird Group, and KFC Indonesia, to the public and government sectors such as BPJS Kesehatan, BKPM, Kemendikbud, and Kemenparekraf.
Processed Over 700 Million Conversations
In addition, Kata Platform has also processed more than 700 million conversations and has 3 million Monthly Active Users who interact with chatbots created using Kata Platform. The number of conversations that took place also accelerated significantly with growth reaching 3 times the number of normal conversations during this pandemic.
“This happens because the need to interact and transact through digital platforms is increasing along with the limited physical interactions and transactions. The Kata.ai platform helps its users to interact effectively with consumers, making Kata.ai a valuable partner for us in the future,” said Barry Lee, TPTF principal.
“Until now we are grateful and proud of the achievements we have achieved. Apart from obtaining Series B funding, this year Kata.ai has also managed to record fairly consistent growth in Annual Recurring Revenue (ARR) for 3 consecutive years in the 2018-2020 period,” Irzan concluded.
In mid-2020, Kata.ai has just been selected as one of 5 startups in Indonesia appointed to be part of the National AI Strategy Task Force by the Ministry of Research and Technology / National Agency for Research and Innovation to develop AI technology innovation and implementation in Indonesia.
Gojek does not want to comment on whether or not it will make GoStore. However, Gojek VP Corporate Communication Audrey Petriny said that the company will continue to innovate to present the latest services to support MSMEs.
“This is so that MSMEs continue to advance and make it easier to implement digitalization in every step of their daily business operations,” said Audrey, last October (19/10).