Indonesian e-commerce unicorn Bukalapak to offer up to 25% in IDX IPO

People walk past a statue of a bull as they enter the Indonesia Stock Exchange (IDX) in Jakarta, Indonesia. Photographer: Dimas Ardian/Bloomberg

Indonesian e-commerce company Bukalapak plans to offer up to 25% of its enlarged capital in its initial public offering (IPO) on the Indonesian Stock Exchange (IDX), according to a company document seen by DealStreetAsia.

The company has projected July 29, 2021, as its estimated listing date on the bourse, under the ticker “BUKA.” Should the listing go per plan, Bukalapak will become the first of Indonesia’s unicorns to list on the local capital market. It will also become the first of Southeast Asia’s current crop of unicorns to go public.  

The document did not specify the amount the company is planning to raise through its domestic public listing. The company intends to use the proceeds for “working capital and general corporate purposes.”

Reuters had reported last week that Bukalapak was looking to raise as much as $800 million in its IDX IPO.

To assist with its IPO, the company has appointed UBS, BofA Securities and Mandiri Sekuritas as bookrunners; Mandiri Sekuritas, Buana Capital Sekuritas as lead managing underwriters; and UBS Sekuritas Indonesia as domestic underwriters.

An IPO for Bukalapak would open the door to a lucrative exit for its group of investors, which include Microsoft, Singapore sovereign wealth fund GIC, local media conglomerate Emtek, the investment arm of Standard Chartered and South Korean web portal Naver Corp.

Rising revenue

Bukalapak, which describes itself as an “all commerce” platform with an online marketplace platform and an O2O MSME app as its two main business lines, claims that it has booked a total transaction value of $6 billion in 2020, and a revenue of $95.8 million, representing a 115% CAGR from 2018.

Source: Bukalapak document

The company’s revenues are derived from three main segments – its e-commerce marketplace, Mitra Bukalapak (O2O business) and BukaPengadaan (BPI) (e-procurement business).

In its marketplace business, the company derives revenue from commissions generated through sales by merchants of physical products and sales by virtual product partners as well as from monetising marketing spend by merchants and fulfilment services.

Its O2O business sees it making money through commissions generated from sales of physical products by merchants and FMCG principals, and virtual products from Mitras (agents), as well as through the fulfilment of logistic services. 

Bukalapak’s e-procurement business generates the company additional revenue from the sales it facilitates of its own products or those of its partners and is tied to the sale of physical and virtual products.

Additionally, the document suggests that Bukalapak has drastically cut its sales and marketing costs between 2018 and 2020. In 2020, the company’s sales and marketing cost stood at $12 million, down 90% from 2018.

MSME segment driving growth

Of all its operating business lines, Bukalapak will be pinning its hopes on the promise of its O2O business, which has been demonstrating the most significant growth for the company. 

Declaring it as the number one O2O agent network in Indonesia tapping the country’s over 64 million MSMEs, Mitra Bukalapak’s TPV has grown 105% from 2018-2020, compared to the 65% growth shown by Bukalapak’s marketplace business in the same period.

Source: Bukalapak document

In terms of revenue, while the marketplace business still generates the most revenue for the company as of 2020, contributing a total of $73 million, Bukalapak’s O2O business has seen the biggest growth between 2019 and 2020, up by 63%, compared to marketplace’s 29%.

Bukalapak’s foray into the offline segment came in 2017 when it launched a second app to empower the mom-and-pop shops or warungs. 

The app, called Mitra Bukalapak, enables MSMEs including warungs and agents to sell virtual products like phone credit, data plans, electricity vouchers and train tickets. It has also developed a B2B marketplace function that connects warungs to principals, allowing them to replenish their stock by ordering wholesale goods on the app and have them delivered to their doorstep.

As reported by DealStreetAsia recently, Bukalapak said the company had started diversifying into categories such as electronics, fashion and motorcycle accessories, and targeting new types of MSMEs including small merchants located in malls.

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.