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Called Paprika, this Medan-based startup creates an app that allows you to get points from a purchase

Paprika co-founders (Left to right): Indra Halim (CMO), Welly Huang (CTO), Kalvin Yap (CEO), Wiyono Suwono (Chairman)

Medan is not exactly the city that comes in mind when people talk about Indonesia’s tech startup scene, but this week Paprika announced its entrance to Jakarta after getting considerable traction in the North Sumatra capital city.

Paprika itself is a cashback platform, operating on Android and iOS apps, that allows users to get points for purchases in various lifestyle outlets.

“We want to help promote businesses so they can focus on making great products and delivering great services,” said Kalvin Yap, CEO of Paprika.

When shopping in a Paprika’s partner outlet, customers only have to show the QR code on their app. They will then receive Paprika Point –worth up to 30 per cent from their total purchase before tax and service- that they can use to shop with.

Yap explained that there are several key strengths Paprika has to offer. Unlike Groupon and Ensogo, customers do not have a ‘deadline’ to redeem the points they get through Paprika. They can also redeem the discount in any outlet partnered with Paprika; it does not have to be the exact same outlet where they got the points from.

“We believe consumers are ultimately the ones consuming promotional materials and we want businesses to pay their consumers instead,” explained Kalvin Yap, CEO of Paprika.

The company was founded in Medan on July 2015, and has opened a branch office in South Jakarta since January this year.

Yap revealed that Paprika is currently on negotiation stage to raise funding.

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Paprika has secured partnership with food and beverage, karaoke, and beauty outlets such as Ristorante Da Valentino, Ron’s Laboratory, Oriskin, and Alegro.

The company helps businesses thrive by not charging them any upfront fee, implementing a performance-based model. Businesses can also benefit from Paprika’s analytics system, where management can learn about customers and gain feedbacks to improve.

“Traditional promotions and advertisements are expensive, require big budgets upfront, and the results are not measurable. Paprika anchors its technology and services based on sales performance,” said Yap.

Also Read: Newly launched Indonesian app Snapcart wants you to shop…and get cashback

Though hailed from various industries, ranging from F&B to timber manufacturing to agriculture, Paprika’s co-founders are no strangers to the tech industry. CMO Indra Halim is founder of Medan-based food directory platform KulinerMedan, while Yap and Chairman Wiyono Sumono had previously worked together as angel investors for e-commerce firm Alikolo.

For the moment, Paprika’s focus will be on winning Jakarta the way it has won over Medan — where the company claims to have facilitated US$7 billion-worth of business and secured more than 3,500 registered users. It aims to partner with 2,000 different businesses in Indonesia this year.

“Paprika is here to stay,” said Yap.

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Image Credit: Paprika

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