Indonesia’s Bukalapak to announce new funding, Naver, Ant Financial likely new backers

Bukalapak
Bukalapak co-founder and president Fajrin Rasyid.

Indonesian online marketplace Bukalapak is set to announce its latest funding round shortly.

Daily Social first reported the development, adding that South Korean messaging company LINE, a subsidiary of Naver Corp, is one of the participating investors.

A source familiar with the development told DEALSTREETASIA that Ant Financial, the financial arm of Chinese internet giant Alibaba, is also involved in the funding round.

When contacted, Bukalapak said it does not “confirm nor deny any of the stated matters” and added that the company will be issuing a press release soon.

An investment by Ant Financial will count as a follow-on funding from the China-based company, which currently holds a minority stake in Bukalapak.

The largest shareholder in Bukalapak is Indonesian media giant Emtek, which held a 36.86 per cent stake in the online marketplace as of September 30, 2018. Emtek and Alibaba are business allies too; the two companies jointly set up a payments platform last year, called DANA, which provides its services to Bukalapak.

Over the past couple of years, Bukalapak has introduced a number of different financial services, including loans, credit and insurance as well as mutual fund and gold investments. The company recently told DEALSTREETASIA that it was looking at launching new investment products and entering new verticals such as P2P lending and remittances.

Bukalapak has also started tapping into the offline market by partnering with over 300,000 local warungs (or traditional mom-and-pop stores), which act as an intermediary between Bukalapak and offline customers and charge a commission.

At a press conference held to commemorate its anniversary on Thursday, the company announced that it will allocate IDR 1 billion ($71,000) to develop its partner programme called Mitra Bukalapak or Bukalapak’s Partners.

The company last raised funding in late 2017, securing an undisclosed amount from investors including Singapore sovereign wealth fund GIC in a round that valued the company at over $1 billion.

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