The dark horse in Indonesia’s used-car race

In The Checkout this week, we spotlight a rising star in Indonesia’s used-car space and dig into the challenges that lie ahead for Lazada’s new CEO. [Read from your browser]( The Checkout 🛒 Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by [registering here](. Written by Thu Huong Le Ecommerce Journalist Hello {NAME} There are benefits to being a dark horse. You can avoid the limelight and focus on what matters. In this week’s Big Story, my colleague, Budi, sketches out a profile of Moladin, a used-car marketplace based in Indonesia that recently raised US$137 million across two rounds. Moladin is in a space that already has two Southeast Asian unicorns: Carro and Carsome. So why are investors betting on this lesser-known company? For one, Southeast Asia's used-car market is still underdeveloped. RedSeer Consulting [estimates]( that the segment is worth about US$50 billion. In addition, the Covid-19 pandemic has significantly driven up demand for used cars. Secondly, Indonesia is a fertile market with high demand for passenger cars as people can’t rely solely on public transport for commutes. Budi also goes on to explain why Moladin’s model differs from Carro and Carsome, the two other elephants in the room. For our Hot Take, the spotlight is back on Lazada, the traditional ecommerce marketplace. Last Friday, we reported on the Alibaba-backed firm’s latest CEO reshuffle - its fifth in five years. It begs the questions: Is time running out for Lazada to catch up with rival Shopee? – Huong THE BIG STORY  [Moladin was ‘almost dead.’ Then it pivoted to used cars - and raised $137m]( Image credit: Timmy Loen Initially focused on motorbikes, the Indonesian firm now has over 40,000 downline freelancers who help its 2,000 employees check cars and estimate prices.  TIA SCHOOL For first-time founders, raising capital can be a complicated and intimidating process. But it doesn't have to be! Tech in Asia School's inaugural Fundraising Program is here to help early-stage founders build a compelling pitch, master the fundraising process, and cut through the noise. Learn from two of the region's best-in-class founders Nipun Mehra, Founder & CEO, Ula as well as Yiping Goh, Partner at Quest Ventures - who'll impart their expertise and tips to our Fundraising cohort. Nipun, a master fundraiser, successfully raised over $140M for his Indonesian e-commerce startup in just two years, and also secured the first ever investment from Jeff Bezos’s fund into a SEA startup. Serial entrepreneur and now investor Yiping co-founded MatahariMall.com and All Deals Asia, SEA's ecommerce aggregator and group-buying platform which was subsequently acquired by Lippo Group. Both lecturers will bring together their founder and investor experience to help you get investor-ready. Applications are open until 26 June - [submit yours today](  THE HOT TAKE Monumental task ahead for Lazada Group’s new CEO Lazada Group CEO James Dong / Photo credit: Lazada Here’s what happened: - James Dong, former CEO of Lazada Vietnam and Thailand, [has been taskedÂ]( leading Lazada Group. - This is the company’s fifth CEO shake-up in the past five years. - The appointment comes amid Lazada’s potential expansion into Europe. Here’s our take: In a media statement, Lazada emphasized that Dong is “a well-liked leader among locals” and has cultivated “a strong local bench force.” It’s important to take note of such praise. A number of past Lazada leaders have been considered to be out of touch with country-specific nuances. An expert once [described]( the management of Lazada to Tech in Asia as “a rotating queue of people flown in from Hangzhou for 12 months.” In 2019, a Wall Street Journal [report]( noted how Max Zhang, Lazada’s Vietnam chief at the time, “had never lived abroad or spent significant time in Vietnam.” Lazada, however, has repeatedly stressed that such troubles - specifically internal turmoil after Alibaba took over in 2016 - are a thing of the past. As CEO for Lazada Vietnam, Dong at least seemed to be an active and friendly face in local ecommerce events and initiatives, spearheading the platform’s operations in the country through a tough pandemic year of 2021. But can he reverse Lazada’s fortunes in the regional race with Shopee? Lazada has lost significant ground to Shopee in recent years. In the 12 months ending September 2021, Lazada reported a gross merchandise volume of [US$21 billion]( - less than half the [US$56 billion]( that Shopee logged in the same period. In one [local interview]( Dong, as CEO for Lazada Vietnam, said the company doesn’t believe in “burning money” to achieve unsustainable targets. But a veteran marketplace seller in Vietnam told Tech in Asia that sellers opt for Shopee because of higher traffic and number of orders generated. “Why would you put more resources to sell on Lazada when the traffic is higher elsewhere?” he asked. Helming the entire group will raise the stakes even higher for Dong. Lazada is reportedly eyeing an expansion into Europe. We previously [analyzed]( how winning Europe demands a vastly different playbook as consumers there prefer local brands and high-quality products. See also: [Org Chart: The people steering Lazada (updated)]( Down the road, Lazada could [potentially be spun off]( so that Alibaba can unlock higher value from its Southeast Asian ecommerce business. But the current turmoil in public markets might further delay the move. Meanwhile, social media giant TikTok, with its ecommerce arm TikTok Shop, [has been marching]( steadily into Southeast Asia and could potentially threaten the dominance of marketplaces like Lazada and Shopee. While change is the only constant, what Lazada perhaps needs the most, at least for the next couple of years, is stability. – Huong  NEWS YOU SHOULD KNOW Check out Tech in Asia’s coverage of the ecommerce scene [here](. 1️⃣ J&T Express [has acquired]( a 30-acre parcel of land in Malaysia for US$136 million. The land will be used to build an integrated logistics center. 2️⃣ China’s “king of lipstick” has [reportedly disappeared]( from livestreaming, sparking questions about censorship. 3️⃣ ByteDance is [considering selling]( its stake in Poizon, China’s largest resale marketplace for sneakers, according to Bloomberg. 4️⃣ Dagangan, an Indonesia-based social ecommerce platform, [has raised]( US$6.6 million in a pre-series B round. 5️⃣ Malaysia-based Momentum Commerce [has been authorized]( to be a TikTok Shop partner in the country. FYI  [Where do Indians shop online?]( credit: 123rf.com As the ecommerce boom continues in India, we have rounded up [a list]( of the country’s most popular websites and apps. That’s it for this edition - we hope you liked it! Do also check out previous issues of the newsletter [here](. Not your cup of tea? You can unsubscribe from this newsletter by going to your “edit profile” page and choosing that option in our preference center. See you next week! 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