Indonesian edtech startup Codemi said it has raised an undisclosed amount of seed funding from Init 6, a fund led by Bukalapak founder and former head chief Achmad Zaky.
Zaky also joined Codemi’s board as part of the investment.
Based in Jakarta, the cloud-based learning management platform provides companies with programs and resources to help upskill their employees. Its features include online testing and training, a course catalog to choose from, learning rewards, and a learner dashboard.
In addition to the funding, Codemi also announced the launch of three new products to increase the effectiveness of its existing materials and give employees new learning experiences. These include instructor-led learning, collaborative learning, and on-the-job learning, according to a statement.
The company currently has 55,000 users from 12 different companies, including Frisian Flag, Manulife, Ranch Market, and OK Bank.
What problem is it solving? Codemi founder and CEO Zaki Falimbany told Tech in Asia that the company initially wanted to develop a massive and open online course platform where anyone can sign up to teach and learn.
“At the end of 2014, I met one of my friends and asked if he could use the Codemi platform for employee training,” Falimbany said. “The problem was that there weren’t many automation programmers at the time, so the company has to train every new employee by itself.”
As it turned out, many companies in Indonesia were experiencing the same issues, even until now. The experience led to the development of Codemi as a learning management system (LMS) provider.
The 2020 Global Innovation Index shows that Indonesia’s human capital and research rank 92nd out of 131 countries, while those of its neighboring countries such as Singapore and Malaysia place higher. According to Codemy, a report by the Economic Research Institute for ASEAN and East Asia says that one of the main problems, one of the main problems in Indonesia is the lack of university standardization and regulation, which leads to graduates differing widely in skill sets.
What are the opportunities and the challenges? According to a recent study from ReportLinker, the global corporate LMS market is projected to grow by US$12.48 billion from 2020 through 2024, climbing at a compound annual growth rate (CAGR) of 23%.
The report attributed this projected growth to the rising adoption of cloud-based corporate LMS, replacing legacy systems, and the increasing need for higher-skilled workers.
Another major factor in the market’s growth is the onset of Covid-19, which has pushed more and more companies to go digital.
“During this time, we believe that the importance of edtech and an online-based learning system are increasingly important as the implementation of large-scale social restrictions has limited the availability of physical contacts, which ultimately affected the development of human resource in Indonesia,” said Falimbany.
According to the founder, there are at least 35,000 medium to large companies in Indonesia that match the company’s customer profile. However, it currently shares the market with companies such as Ruang Kerja, Pinteraktif, and Prospark.
What are its future plans? With the new capital, Codemi said it plans to develop more learning products for its users and build a stronger security infrastructure.
“As the pandemic has increased the use of digital technology in our daily lives, including in learning, Codemi sees this as an opportunity and momentum to further improve ourselves, which ultimately is also helped by the fund. Moving further, we hope that by providing them with better infrastructure and more products, our users could have a better learning experience,” said Falimbany.
Who are the team members? Falimbany started building Codemi after joining the Jakarta Founder Institute, which connects aspiring entrepreneurs with established mentors. He currently leads a 20-strong team that’s divided between Jakarta and Yogyakarta.