UBS AG, Genting Group join Indonesian unicorn Bukalapak’s latest cap table

Photo: Bukalapak

More investors have joined e-commerce unicorn Bukalapak’s latest funding round, bringing the total proceeds raised to more than $400 million.

This follows earlier investments from Microsoft, and existing shareholders including Singapore’s sovereign wealth fund GIC and Indonesia’s media conglomerate Emtek.

Bukalapak’s April 13 corporate filing shows four new investors on top of the seven that DealStreetAsia had listed earlier. The four are Genting Berhad subsidiary Resorts World Inc. Pte. Ltd.; Star AA Ventures Ltd; individual investor Peter Teng He Xu; and the London branch of Swiss investment bank UBS AG.

UBS AG London is likely serving as a nominee for an unidentified client, as it has for investments in several Indonesian publicly-listed companies, according to corporate disclosures.

The shares allotted to UBS is the largest amount in Bukalapak’s seventh funding round. With 217,878 shares, 0r 2.5%, UBS AG is listed as the ninth largest shareholder on the capitalisation table. Microsoft’s share is 1.2%.

UBS AG and Bukalapak have declined to comment on this article.

An executive whose company took part in the funding round confirmed that Bukalapak had previously raised $234 million from Microsoft, GIC, Emtek, Standard Chartered and NAVER Corporation. This first batch of investment was later followed by strategic placements by Indonesian venture capital firms, BRI Ventures, and Mandiri Capital.

Based on the share price for the Microsoft-led investment, Bukalapak raised an estimated $432 million from its latest funding round with a valuation of $5.2 billion. The company last announced its valuation in 2019 at $2.5 billion.

A changing landscape

The investment comes as Bukalapak prepares for an initial public offering. The company is said to have hired local securities firm Mandiri Sekuritas to prepare for a market debut which could be as early as the third quarter of this year.

Proceeds from the IPO would shore up Bukalapak’s war chest against the rising dominance of Shopee Indonesia and Tokopedia in Indonesia’s e-commerce space. Bukalapak ranked third in terms of monthly web visits and seventh in both iOS AppStore and Android PlayStore, according to SimilarWeb fourth quarter of 2020 data.

Already the largest e-commerce player in Indonesia, Shopee has recently branched into food delivery, posing a threat to incumbents in the segment: ride-hailing firm Gojek and rival Grab. Shopee comes with strong financial backing from its Singapore parent SEA Group, the most valuable company in Southeast Asia with a market capitalisation of $140 billion.

Tokopedia, which is also moving toward an IPO, is close to finalising its merger with Gojek. Tokopedia is slated to control 40-42% stake in the proposed entity, GoTo, which sources said could fetch a valuation of up to $40 billion.

The merger is likely to reshape the e-commerce competition landscape in Indonesia as Gojek is expected to replace Grab as the preferred last-mile delivery partner on Tokopedia’s platform. Losing a major e-commerce player as a strategic partner could be a major blow to Grab, especially when Shopee is building its own delivery armada.

There is, however, the scope for a strategic partnership between Grab and Bukalapak via its parent company. As DealStreetAsia reported earlier, Grab has recently joined NAVER, in picking up a stake in Emtek. The Sariaatmadja family, which founded Emtek, will also take part in the $4 billion private investment in public equity (PIPE) deal that is tied to Grab’s impending merger with blank cheque firm Altimeter Capital.

Grab has also been reported to be in negotiations to merge its Indonesian e-payment arm OVO with Emtek’s subsidiary DANA, the preferred payment partner of Bukalapak.

Kristie Neo contributed to this story.

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.