The news about a local unicorn planning for an IPO has spread, it’s coming to Bukalapak. According to a Bloomberg source, it started to explore the potential to go public on the IDX (at low shares), then continue to take it on the US stock exchange through the SPAC scheme. The company is said to be in discussion with several blank check companies and has started working with investment banks to explore.
Through SPAC, Bukalapak’s valuation is to reach $4-5 billion from the current value at $3.5 billion. Apart from Ant Group, GIC, and EMTEK Group, Bukalapak is supported by a number of investors and corporations including GIC, Naver Corp, Microsoft, and Standard Chartered. In Indonesia itself, according to research findings, Bukalapak is in third place after Shopee and Tokopedia – with an online marketplace high-tension competition with fast business dynamics.
In order to confirm, DailySocial is in contact with Bukapalak’s President, Teddy Oetomo. However, he avoids commenting on this matter. Meanwhile, the company representative said that after 11 years of operation, they are now focused on building a sustainable business to create a long-term impact on MSMEs and the Indonesian people through reliable online and online-to-offline platforms.
The news surfaced after Bukalapak’s CEO, Rachmat Kaimuddin said on an occasion, “We still want to be independent and run Bukalapak as a standalone company. IPO is an option to be able to obtain funds and technology companies will eventually want to IPO. We are open to that option and are now preparing the infrastructure.”
In his writing, Bukapak’s founder and former President Fajrin Rasyid signaled his support for Indonesian startups for an IPO. One thing he emphasized was that the net benefit for this country would be better if the IPO was conducted domestically, or at least a dual listing at home and abroad.
Business Diversification
Bukalapak is still on track to pursue profitability by exploring various sectors outside its core business as an e-commerce service. For example, through a subsidiary called Buka Investasi Bersama, it’s to deepen the mutual fund investment business, especially targeting the underserved. On a general note, this investment instrument is getting its momentum along with the increase in financial literacy of various circles of society.
Through the LinkedIn post, Bukalapak’s COO, Willix Halim published that his team was recruiting various strategic positions for a new business unit. He wrote that the ability to speak Tagalog (the native language of the Philippines) will be prioritized. Rumor has it that Bukalapak is trying to explore the Philippine market with a new business. We tried to confirm with Bukalapak regarding this issue, however, they avoid making further comments.
Business diversification is an important strategy in Bukalapak. Related to e-commerce supporting businesses, the stall partnership program “Mitra Bukalapak” has found quite strong performance – it is considered to be one of the most significant innovations. Throughout 2020, Rachmat said, the growth of this line will reach 50%. The business unit under the legal name “Buka Mitra Indonesia” has its own CEO, Howard Gani. Currently, Bukalapak has 100 million users with 7 million partners.
Bukalapak is the fourth unicorn that is reportedly taking the floor on the stock exchange. Previously, Gojek, Tokopedia, and Traveloka had been widely discussed regarding their plans for an IPO through SPAC. In addition to the rapidly growing business, currently, it is considered to be the right momentum to take this corporate action – considering market conditions and readiness.
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Original article is in Indonesian, translated by Kristin Siagian
