S Korea’s Shinhan invests in Indonesia’s Bukalapak at $2.5b valuation

Bukalapak's Fajrin Rasyid at DEALSTREETASIA's Indonesia PE-VC Summit 2019 in Jakarta. Photo: Ipsita Ray/DEALSTREETASIA

Indonesian e-commerce major Bukalapak announced on Friday that South Korean conglomerate Shinhan GIB has joined the firm’s latest Series F funding round, along with a few existing investors.

Indonesia’s media conglomerate Emtek and another global institutional investor (whose name has not been disclosed) also participated in the round.

Bukalapak, which became Indonesia’s fourth unicorn last year, did not disclose the deal size or the stake that Shinhan GIB picked up but added that the funding has pegged its valuation at a whopping $2.5 billion.

Other unicorns in the country are Tokopedia, GOJEK, and Traveloka.

Bukalapak plans to use the corpus raised to facilitate its long-term plan and business strategy to expand its operation. However, it did not specify any details.

Established in 2010, Bukalapak now has 70 million active users, with over 4 million active sellers, 2 million mom-and-pop kiosks. On the business side, it has a significant number of individual agents across the archipelago’, who are referred to as ‘mitra Bukalapak’.

Apart from its core online marketplace business, the company offers a slew of products such as streaming video features, offering mutual funds and fintech products. It also allows users to purchase phone credit and pay electricity and insurance bills.

Shinhan GIB is the investment banking unit of Shinhan Financial Group or SFG that was set up in 2017 to facilitate the development of startups. SFG has total assets amounting to $143 billion and has $19 billion in market cap.

In January this year, Bukalapak had raised $50 million in series D round from another South Korean investor, Mirae Asset –Naver Asia Growth Fund, a joint venture fund operated by Mirae Asset and Naver, which operates messaging app Line.

Apart from these investors, Bukalapak also counts Singapore’s sovereign fund GIC and Alibaba’s Ant Financial among its backers.

Indonesia is an important market in Southeast Asia that is poised to witness significant growth in the years to come. According to the latest report jointly launched by Google, Singapore’s state investment firm Temasek, and Bain & Co, the country’s internet economy has recorded a growth rate of over 40 per cent year-on-year, driven by a slew of factors such as growing middle-class coupled with a rising ‘netizen’ population in the backdrop of strong domestic consumption.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.