5 Indonesian Startups That Went Bankrupt in 2024

The past few years have been a challenging period for many businesses, and the startup sector in Indonesia is no exception. Despite the country's dynamic tech scene, several prominent startups have succumbed to the economic pressures of 2024. From educational platforms to e-commerce solutions, here are five high-profile startup closures that reflect the struggles in Indonesia’s startup ecosystem.

1. Zenius: The Fall of an Education Giant

Zenius, once a beacon of hope in Indonesia’s digital education space, has faced a significant decline in its user base over the past few years. The company, known for providing interactive video lessons in Bahasa Indonesia, initially captivated the market with over 20 million users in 2020. However, by November 2023, that number had dwindled to just 4.1 million, marking a sharp decline. The situation worsened when Primagama, one of Zenius' key partners, announced that Zenius would officially cease operations in January 2024. Despite its early promise, Zenius failed to adapt to a competitive education technology market, leading to its closure.

2. Ula: Struggling to Fulfill the Promises of UMKM Growth

Ula, a startup that catered to small and medium enterprises (SMEs) in Indonesia by providing essential goods and services, initially received significant investment, including funds from Jeff Bezos’ Bezos Expeditions. However, by late 2023, the company began experiencing severe financial difficulties, including halting shipments and orders in October 2023. Rumors circulated that Ula’s Indonesian office had shut down in February 2024. Despite its early backing and potential, Ula was unable to recover from cash flow problems and operational inefficiencies, resulting in its downfall.

3. TaniFund: A Sad Exit for Agricultural P2P Lending

TaniFund, a peer-to-peer (P2P) lending platform focused on providing financial support to Indonesian farmers, was another victim of 2024’s economic turbulence. On May 3, 2024, Otoritas Jasa Keuangan (OJK), Indonesia's Financial Services Authority, officially revoked TaniFund’s business license due to its failure to meet the minimum equity requirements and non-compliance with OJK regulations. Despite the company’s early success in offering financial services to smallholder farmers, its inability to meet regulatory demands led to its closure, marking a tragic end for a once-promising agri-tech startup.

4. Investree: Another Victim of OJK Regulations

Similar to TaniFund, Investree, a P2P lending platform, was also shut down by OJK in 2024. Investree, which allowed individual investors to fund small businesses, faced mounting financial issues, including poor performance and failure to meet regulatory standards. On October 21, 2024, OJK officially revoked Investree’s operational license. The company’s inability to comply with capital requirements and worsening operational performance ultimately led to its collapse. This marks another significant blow to the P2P lending sector in Indonesia.

5. GetPlus: A Loyalty Program That Couldn’t Stay Competitive

GetPlus, a cashback and rewards program under PT Global Poin Indonesia, offered users incentives for transactions at various merchant partners. Despite attracting customers in its early stages, GetPlus struggled with sustaining its business model amid increasing competition in the loyalty program market. In December 2024, GetPlus announced its shutdown through a post on Instagram, marking the end of its operations. The company, which once promised a seamless rewards system, ultimately couldn't compete with other players in the market.

Conclusion

The closure of these five startups in 2024 highlights the challenging environment faced by businesses in Indonesia. From financial mismanagement to regulatory hurdles, the country’s startup ecosystem has been shaken by these significant failures. However, while these closures are unfortunate, they offer valuable lessons for both entrepreneurs and investors, emphasizing the need for adaptability, strong financial management, and compliance with regulations. As Indonesia’s startup ecosystem continues to evolve, these lessons will hopefully pave the way for more resilient and sustainable businesses in the future.