TipTip uses a hyperlocal strategy to help Southeast Asian creators monetize
There is a lot of talented people in Southeast Asia, such as musicians and chefs, who can make money online, according to Tip founder Albert Lucius. Many of these people don’t have the social media power to attract advertisers. TipTip aims to help them build their followers using an offline/online strategy and monetize through content sales instead of relying upon advertising algorithms. The Indonesian-based startup announced today it has raised $13 million in Series A funding, just eight months after its $10 million seed round in March.
The latest round was led and participated in by East Ventures. Returning investors Vertex, SMDV, and B.I.G. were also involved. Ventures.
TipTip founded in October 2021 by Albert Lucius, whose previous startup Kudo was acquired by Grab in 2017. It allows creators to connect with their fans and monetize their content by selling it to their followers or hosting live video sessions.
The platform launched in July, and says its revenue has grown 20x since October, with creators earn more than $200 on average within 30 days of being active on TipTip.
TipTip currently has 2,500 content creators and over 30,000 users. Its goal is to recruit more than 30,000 creators and 300,000 users by early next year. It is currently focused on Indonesia, with a presence in 40 cities.
TipTip was founded for local musicians, chefs, and painters. However, they have few followers and must continue to grow their audience. TipTip employs a hyperlocal strategy to help them scale and monetize in Indonesian towns and cities. This allows them to host events and activities that are tailored to their communities.
Lucius: TipTip’s team noticed that many people were becoming more comfortable with the idea of making money online after COVID hit. This was because they saw a rise in interest in digital content. Based on research they sourced from Research and Markets, Digital Journal and Statista, they found that the creator economy in Southeast Asia has a projected CAGR of about 10% to 30%.
Lucius stated that many Southeast Asian creators are unable to monetize using tools on social media platforms like YouTube, Facebook, Instagram, or Patreon. These platforms are better suited for top creators with a lot of views and followers, and can attract advertisers.
Lucius states that TipTip is different from other social media platforms because it offers an end-to-end solution to creators, including digital content management and distribution as well as live streaming services, one on one interactions, and direct tipping. Its platform helps creators with administrative matters, such as audience management, know-your-customer (KYC), payment system and scheduling.
” There are many industry leaders in these areas. They are complementary and necessary to our services. Lucius stated that we trust our promoters/creators to continue using external platforms for their audiences to post updates, advertise free offerings, and provide links back TipTip to monetize these premium contents.”
TipTip offers direct monetization channels via tipping and direct purchase and takes a cut of every sale on its platform.
TipTip’s content sharing includes edutainment, which is a category that includes music. Musicians can share tips and tricks on how to create better songs. Sometimes, they even perform live. Creators also offer multi-segment courses that teach public speaking skills, and include a workshop.
TipTip has a network that promotes creators’ content. Lucius said that promoters are often resellers or affiliates to their local communities and earn a commission for each sale. Lucius explained that the analogy is similar to Uber Eats helping restaurants sell more food. “In our case, promoters aid creators to sell their digital content .”
TipTip creates a pipeline of creators by using awareness programs. It partners with top creators and uses above-the-line advertising campaigns. A hyperlocal strategy is used to find key opinion leaders (KOL), which are top influencers in each community.
TipTip’s funding round is used to recruit more creators and promoters. It will also create new product offerings like podcasts, branding deals, and personalized requests so creators have more revenue channels. The company will also expand its offline/online presence in 250 towns and cities across Indonesia by the middle next year.
Willson Cuaca, East Ventures cofounder and managing partner, stated that they believe in Albert’s leadership of TipTip. His previous experience in building and running Kudo, which was acquired by Grab in 2017, is still pivotal to navigate the turbulent economy as we move into 2023.. We expect TipTip’s exponential growth to continue on the back its hyperlocal strategy, which adapts well to changing customer behavior and creator behavior in the post COVID era .”
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.