JumpStart, an Indonesian smart vending machine startup backed by Djarum’s GDP Venture, is expanding to a B2C model after operating as a B2B2C startup for six years, a top executive said at a press conference in Jakarta on Tuesday.
The company has launched an AI-powered capsule coffee machine under the NOD brand which produces not only coffee beverages but also other non-coffee drinks such as tea, herbal drinks, and milk-based beverages. The app-operated product was launched alongside 13 capsule flavour variants.
The product will soon be available for purchase both online and offline, including through the e-commerce platform Blibli, as both companies are part of GDP Venture’s portfolio.
“We’re targeting the mass market, which is why we’re selling the machine at an affordable price point, with capsules starting from 6,000 rupiah (about $0,38) available on e-commerce platforms. Customers can also order and subscribe through the NOD app,” said Brian Imawan, CEO of JumpStart.
Before its official introduction, the company introduced a similar concept under the brand Izzio, which primarily targeted business users. The coffee maker and capsules were typically placed in hotels as complimentary beverages in guest rooms. The company has partnered with 1,500 clients to date.
Founded in 2018, JumpStart initially positioned itself as a smart coffee machine provider for B2B clients. About 60% of its users are office building owners with a minimum capacity of 100 people. The machines are also commonly found in universities, hospitals, and tourist attractions.
The company has a presence in 11 cities, from Jakarta to Bali, with a total of 4,000 vending machine units. As a vending machine specialist, the company has innovated by launching various product catalogues, including ice cream, cotton candy, juice, sugar cane, snacks, and more. The average daily transactions per machine are reported to be around 50-60.
“Next year, we aim to increase our distribution scale to 7,000 units, and we want to expand beyond Java, but we’re still preparing local teams to maintain quality.”
To execute this new strategy, the company is using its Series B funding received in May 2023, led by Tokyo-based PE firm Cool Japan Fund (CJF) and Living Lab Ventures. Meanwhile, GDP Venture led the Series A round in 2018.
The company also has ambitions to expand into the Asian market by the end of next year. However, Imawan admits they are still developing these plans, including the possibility of need new funding.
Imawan noted that the vending machine market, including coffee, is relatively new even in Asian countries. While the concept is widely accepted in Western countries, even in Japan, the numbers are still far behind. It’s estimated that there are around 20,000 vending machines in Japan, while Indonesia currently has only 4,000 units.
