Dating app startups court Indonesia’s internet surfers

JAKARTA — Indonesia is turning into an battleground that is important dating apps, because of its large population of young online users plus the potential for growth. Local startups such as for instance Wavoo and Setipe are facing off against foreign apps like Gather and Tinder from the U.S., Spotted from Germany and Singapore’s Paktor, all of these are targeting the Indonesian market.

In accordance with the Association of Internet Service Providers in Indonesia, the national country has roughly 100 million internet surfers, a 40% penetration rate of the population of approximately 250 million. Indonesia also offers 65.2 million smartphone users, a figure this is certainly projected to develop to 92 million by 2019, relating to research firm eMarketer.

Executives at dating app startups and some investors are bullish concerning the prospects for the industry, by which they see an enormous market that is potential.

Domex Mandey, CEO of Wavoo, estimates there are many more than 35 million Indonesian internet users into the 18-to-32-year-old age bracket — the principal target for online dating players. And Setipe CEO Razi Thalib said of that 35 million, there clearly was a complete addressable market of 27 million singles that are online.

Adrian Li, managing partner at capital raising firm Convergence Ventures in Jakarta, said, “When we assume 40% of Indonesia’s total population is at the 18-to-35 range, and 50% of those are single, that’s 50 million singles. ” Li, whose firm is an investor in Paktor, estimates that the industry in Indonesia will eventually be worth between $500 million to $1 billion in annual revenue.

Other investment capital firms are far more cautious.

Andrias Ekoyuono, vice president of business development at Jakarta based Ideosource, said that many Indonesians will not need specific apps for dating or making new acquaintances. “Unlike within the U.S. Or ukrainian mail order bride any other countries, our company is not afraid to just accept strangers to be our friend in Facebook. And achieving follow-up conversations with them on messenger apps, ” he said.

Another obstacle, Ekoyuono said, may be the barrier that is psychological those who find themselves using dating apps are thought by their peers to be “undesired singles. ” While Ideosource have not yet committed to a app that is dating, it remains ready to accept the possibility.

Thalib said that perceptions such as for instance undesirability will change aided by the growth of more serious apps. “the moment people realize the basic premise that the world-wide-web is a social access tool. That can certainly make it easier to allow them to imagine the possibility of finding a date partner online. “

Thalib and other dating app startups believe that Indonesians’ habits as major social media users are helping them adapt to the dating platform that is online. While social media marketing platforms such as Facebook are helping users relate to people they already know, they predict that the dating that is online will become the standard option to meet new people.

Mandey is optimistic that Indonesians will gravitate toward dating apps, despite the country’s traditional social conservatism and Islamic influence. ” i think today’s dating apps are very well received in comparison to 3 to 4 years back, ” he said. Mandey notes that customers utilize the app not just for dating but which will make friends.

The moves are paying off, said Mohammad Fahmi, a dating app user. He said that parents today are the ones that often suggest with their children which they make an online search to find a suitable mate.

But price remains a consideration for users. Fahmi regularly uses Tinder, and also at one time subscribed to its premium service when it charged just 99 cents four weeks. However, he unsubscribed through the premium service when Tinder returned to its regular charge that is monthly of9.99.

Wavoo and Setipe are free, while Gather offers “freemium” services, for which users should buy balloons that are virtual at roughly $2 for 10, and make use of them to take part in offline gatherings hosted by other users through the app.