Indonesia's Bukalapak set for domestic IPO

The company is reportedly seeking to raise up to $1.5 billion. AVCJ Research has records of only 15 PE-backed offerings on the Indonesian bourse in the past 15 years, led by Adaro Energy at $1.35 billion in 2008. However, companies often seek a small initial public free float because of limited liquidity and raise larger amounts of capital when foreign institutional investors are ready to come in.

The first local listing by a technology start-up came in 2018, when online-to-offline (O2O) e-commerce kiosk operator Kioson raised IDR45 billion ($3.4 million). There were no VC investors. It was followed by M Cash, a similar O2O e-commerce operator, which raised IDR300 billion.

Bukalapak has already started its roadshow, and the company expects to complete the offering by the end of July with a view to commencing trading on August 6. The proceeds have been earmarked for working capital and the development of subsidiaries, according to a statement.

"Through this IPO plan, we believe, we can further strengthen our business network and provide opportunities for anyone who wants to grow together in creating a digital ecosystem and empower MSMEs [micro, small and medium-sized enterprises] in Indonesia. This is in line with Bukalapak's mission to create a fair economic opportunity for all,” said Rachmat Kaimuddin, the company’s CEO.

Established in 2010, Bukalapak helps MSMEs – typically small, traditional family-owned businesses known as warungs – go online. It had 104.9 million registered users as of December and achieved total processing value (TPV) of $6 billion in 2020, of which about 70% comes from transactions outside tier-one cities. Revenue for 2020 was $95.8 million.

Bukalapak launched Mitra Bukalapak, a series of membership-based O2O programs that offer financing and supply chain solutions, in 2017. There were 6.9 million members as of December and together they accounted for 27% of TPV in 2020. The company is pushing deeper into financial services, launching a B2B procurement platform in 2019 and a digital mutual fund platform last year.

Bukalapak has raised approximately $300 million in private funding, AVCJ Research’s records show, although the sizes of most rounds were not disclosed. In addition to GIC and Microsoft, backers include 500 Startups, Gree Ventures, IMJ Investment Partners, Mirae Asset Global Investments, Naver Corporation, SC Ventures, Emtek Group, and BRI Ventures.

The company’s IPO launch comes two months after Tokopedia merged with Gojek, creating Indonesia’s largest on-demand services and payments platform. The new business – known as GoTo – combines Gojek’s transportation, food delivery, logistics, and finance offerings, with Tokopedia’s country-leading e-commerce marketplace and associated financial technology services.

GoTo is expected to pursue an IPO. Meanwhile, Grab, a Southeast Asia-focused ride-hailing and local services platform, agreed to list in the US earlier this year via a merger with a special purpose acquisition company (SPAC). The deal gives the business an enterprise value of $30.4 billion.

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• Topics
• Southeast Asia
• IPO
• Technology
• Consumer
• Indonesia
• TMT
• 500 Startups
• GIC Private
• Microsoft
• Gree Ventures
• BRI Ventures
• Mirae Asset Private Equity