<article>Indonesian e-commerce unicorn Tokopedia is in talks to invest in used phone e-tailer Laku6, said people familiar with the development.</article>

Indonesian e-commerce unicorn Tokopedia is in talks to invest in used phone e-tailer Laku6, said people familiar with the development.
It is understood that discussions are at an advanced stage and if talks fructify, the former will pick up a ‘significant minority stake’ in Laku6. The deal size, however, could not be ascertained.
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.
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.
Outside China and India, Indonesia is the hottest e-commerce market in Asia &#8211; it is expected to grow from $8 billion in 2016 to $65 billion by 2020. The market has been abuzz with deal activity in the last few months.
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Discussions are at an advanced stage and if talks fructify, the former will pick up a ‘significant minority stake’ in Laku6, said sources.

Indonesia's Tokopedia said to near investment in used phone e-tailer Laku6

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Indonesia's Tokopedia said to near investment in used phone e-tailer Laku6

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