Indonesian listed technology group Bukalapak has enough cash to cover its operations for the next 25 years on the back of efficient cost management and improving performance, a senior executive said on Friday.
“At this time, with the current cash position, we don’t see the need for fundraising at all — maybe ever,” Teddy Oetomo, Bukalapak president, told reporters.
Conservatively, Bukalapak has a 15-year runway by taking the company’s adjusted EBITDA into consideration, Oetomo said. However, by calculating the company’s interest income, Bukalapak’s cash is enough for over 25 years. “Which is far more than enough,” he said.
Bukalapak’s ample cash came from its successful initial public offering (IPO) in August last year, which raked in $1.52 billion to be used for working capital, funnelled into its subsidiaries, and the rest for any business development that may include investments or business acquisitions.
Bukalapak reported its earnings earlier this week, showing consistent progress in its efforts to cut costs and boost revenue. For the first time, Bukalapak also recorded a positive contribution margin — calculated as gross profit after sales and marketing costs— in the third quarter of 2022.
The company booked 898 billion rupiah ($57 million) in revenue during the July-Sept, 2022, an 86% increase compared with the same period a year earlier. Within the first nine months of 2022, the company’s revenue increased 92% annually to 2.6 trillion rupiah.
The company’s cash and cash equivalents stood at 17 trillion rupiah at the end of Sept 2022, about a 31% drop compared with the same period a year earlier. Its total assets in the period, however, increased around 8% year-on-year to 29 trillion rupiah due to a significant hike in long-term investments.
According to the latest financial report, Bukalapak’s net cash used in operating activities was 570 billion rupiah in end-September, a significant drop from 1.1 trillion rupiah during the same period a year earlier.
“As the management, we should not be complacent. While our cash ratio to costs remains high, we still need to be focused on how to take this company into a profitable adjusted EBITDA,” Oetomo said.
Bukalapak’s shares closed at 284 rupiah apiece, up 1.43% on Friday, the highest level in the past week.