Social commerce platform RateS bags Series A funding led by Vertex and Genesis Alternative Ventures

INDONESIAN social commerce platform RateS has closed a Series A round led by Vertex Ventures Southeast Asia & India and venture debt firm Genesis Alternative Ventures.

The funding, which was undisclosed, will be used to accelerate RateS' expansion in Indonesia's underserved tier two and three retail markets via its reseller base of more than 500,000 agents.

RateS' platform lets individuals start their online reselling business easily. The mobile app allows sellers to access products sourced directly from suppliers, as well as manage their inventory and payments.

The startup's reseller profiles have expanded beyond their initial focus of housewives and student agents, to now encompass warung (small family-owned businesses) and small retailers.

Jake Goh, CEO and co-founder of RateS, said the company has seen resellers' incomes increasing by up to 50 per cent since joining its platform.

"As with many other models we have seen, e-commerce marketplaces in South-east Asia have long evolved into a race-to-the-bottom with cash serving as the only standing moat," said Chua Joo Hock, managing partner at Vertex Ventures Southeast Asia & India.

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"RateS, on the other hand, has unearthed an efficient acquisition playbook to access tier two and three Indonesia cities that is not only cost-effective and sustainable, but more importantly has a huge untapped market potential."