Indonesia's Bukalapak IPO raises $1.5 billion!

On July 21, industry sources said that Bukalapak, an Indonesia-based e-commerce company, has raised US$1.5 billion through its initial public offering (IPO).

An industry insider revealed that Buklapak's IPO raised more than $6 billion, a far cry from its initial $300 million funding target. The figure reportedly first soared to $800 million before nearly doubling to its current level.

Bukalapak’s share price is expected to be between 750 and 850 rupees, with its debut scheduled for August 6, according to sources.

Bukalapak is the fourth largest company in Indonesia's $40 billion e-commerce sector, competing with Tokopedia, Sea, Shopee and Lazada. Over the years, Bukalapak has gained a large number of fans in the local market with its strong strength and has been favored by Indonesian consumers.

In addition, an industry insider revealed that Bukalapak, which is backed by GIC and Microsoft, has attracted interest from long-term funds and sovereign wealth funds as well as local investors in its IPO.

In April, Bukalapak raised $234 million in a funding round led by Microsoft, Singapore’s sovereign wealth fund GIC and media group Emtek. Bukalapak is also considering merging with a special purpose acquisition company (SPAC) to list in the United States. The company is working with Mandiri Sekuritas, the securities arm of Bank Mandiri, for the IPO.

Bukalapak reportedly said it would partner with one of the country’s largest banks to transform small businesses using the B2B e-commerce platform into banking agents.

Bukalapak plans to promote a service from Indonesia’s largest bank, Bank Mandiri, to grocers and street vendors, through which merchants can help shoppers without smartphones open bank accounts, the editor has learned.

Supermarkets and suppliers are responsible for more than $70 billion worth of goods each year, or 18% of Indonesia’s $380 billion retail market, according to Bukalapak.

This time, Bukalapak raised $1.5 billion in financing, which will lay a solid foundation for the future development of the platform and the company in Indonesia. As Bukalapak continues to move forward, it will attract more new users and open up a wider market.

Indonesia