Indonesian unicorn Tokopedia closes investment in used phone e-tailer Laku6

Photo: Laku6 Facebook page

Indonesian e-commerce unicorn Tokopedia has closed its investment in used phone e-tailer Laku6, according to  people familiar with the development.

It is understood that Tokopedia has picked up a ‘significant  stake’ in Laku6 and the deal size is in the range of $5-$10 million.

When contacted, both Tokopedia and Laku6 executives declined to comment on the development.

“We have no comments regarding the investment news except that we are in discussions with investors all the time. However, we do have exciting product upgrades to share,” said a Laku6 spokesperson.

A Tokopedia executive, on the other hand, added: “We cannot comment nor confirm on market rumours or speculations.”

Earlier DEALSTREETASIA had reported that Laku6 was close to signing a $5-million deal with a strategic investor, while some of its earlier investors such as Golden Gate Ventures were also in the fray to ramp up their stake in the company.

Also, in an exclusive chat with us a few months ago, Laku6 founder Alvin Yap had said the company is banking on a new offering, thereby adding that it is expecting to triple its revenues by the end of the year.

After launching in July 2015, Laku6 had secured more than $1.8 million in seed funding, with Singapore-based Golden Gate Ventures leading the round back then. Andy Zain, managing director of local VC firm Mountain Kejora, was also amongst the angel investors who had participated in the seed round. Other investors were Convergence Ventures, Skystar Capital and Rocket Internet.

Laku6 claims to be one of the largest used phone retailers in Indonesia and Thailand, offering 40 per cent lower price on phones with a 90-day warranty.

Tokopedia, one of the country’s largest e-commerce players, recently made headlines when it announced that it secured a $1.1 billion funding led by China’s Alibaba Group. Earlier, the Chinese firm’s rival, Tencent-backed JD.com, was reportedly in talks to invest a significant amount in the Indonesian firm.

In addition to the proposed deal, industry sources said that Tokopedia has few other investments lined up in niche verticals as well, which goes on to indicate how the unicorn is increasingly adopting a strategy to create a bigger marketplace for itself. Its competitors include Bukalapak, Lazada and Shopee.

Tokopedia also recently formed a JV with SF Express, Triputra group to form a last mile delivery platform, Anteraja.id. Tokopedia is also learnt to be in talks to acquire Indonesian company, Bridestory.

Earlier, DEALSTREETASIA had also reported that Chinese giant JD.com was eyeing a business partnership with Laku6, indicating a growing interest in this segment and the company.

 

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.