If you ask around in Indonesia, you may hear that edtech is booming with investors pouring money to online private lesson companies who sell subscribtions of videos to students.
The two latest news mentioned investment of US$150 millions and US$20 millions going into a couple of these companies which you can easily search in google. This is good as edtech is growing very fast in Indonesia; both of the companies are in the same B2C sector offering to the same customers, and the same business model. Which one will win? Which one will die? We don’t know.
B2C model must rely on massive advertisements, TV talks, and other advertisements to continuously attract buyers, these are very expensive. But the key problems in Indonesia (despite big spending on advertisements) are:
1. Conversion rate to buyer is very small;
2. Switching rate to similar competitors is very high (just a click away);
3. Indonesian student’s perception of education is free.
Fundamentally school is the official provider for education to students’ nationwide, not private lesson companies. Because very minority of student may be able to pay but majority of students (over 90%) could not pay for private lesson online. So equal distribution of education can only be done via state schools nationwide, which are bascially free. So B2C may not be the solution for government, but it may work for private companies.
Pendidikan.id’s KIPIN is a technology platform to answer these needs that is to equip school and to enable schools with digital infrastructure to bring them to current smartphone era. As a matter of fact Pendidikan.id is probably the only company that focuses on serving these needs.
KIPIN has unique solutions with online and offline for all school nationwide, the leading product are KIPIN ATM, KIPIN SCHOOL, KIPIN PTO, AND KIPIN PTO-CLOUD. In just short time, KIPIN solutions already installed in hundreds of private and state schools nationwide in over 10 provinces.
After 7 years of research and development, PT. Mahoni Edukasi Digital has finally broken to commercialize its KIPIN platform, within just one year of commercialization, it has become profitable and ready to scale to dominate schools sector in Indonesia.
KIPIN is the leading B2B platform for schools in Indonesia, the barrier of entry for this sector is very high, both replacement and switching costs. By 2022 we will have over 10,000 KIPIN ATM installed in schools and dominate this sector for the next decade.