Bukalapak, Indonesia’s E-Commerce Unicorn, Raises $400 Million From New Investors

Bukalapak, an Indonesian e-commerce unicorn, was created by Achmad Zaky (left) and two of his classmates.

Bukalapak, an Indonesian e-commerce unicorn, was created by Achmad Zaky (left) and two of his classmates.

According to a study from DealStreetAsia, Indonesian e-commerce unicorn Bukalapak attracted additional investors in its most recent funding round, which raised more than $400 million.

According to the paper, Bukalapak’s recent corporate filing indicates that the London branch of Swiss investment bank UBS Group AG and the Resorts World subsidiary of Malaysian conglomerate Genting Berhad are among the new backers. Bukalapak did not respond to a request for comment on the study.

According to reports, UBS AG London is acting as a candidate for an undisclosed client. The bank, which obtained the most shares during the funding round, now owns 2.5 percent of Bukalapak.

Bukalapak is reportedly planning for an initial public offering in the third quarter of 2021. According to a recent Bloomberg article, the Jakarta-based startup could be priced between $4 and $5 billion in a possible merger with a US-based special purpose acquisition company (SPAC).

Bukalapak is valued at $3.5 billion by market research company CB Insights. In 2017, the company reached unicorn status.

Achmad Zaky and two friends from the Bandung Institute of Technology created the startup in 2010. Zaky resigned as CEO in January 2020. He was succeeded by Rachmat Kaimuddin, a former PT Bank Bukopin finance and planning chief. Nugroho Herucahyono and Fajrin Rasyid, the other two cofounders, have resigned in 2019 and 2020, respectively.

Bukalapak, which translates as “open a stall” in Bahasa Indonesia, enables millions of small mom-and-pop businesses in the country to sell their wares online. Mitra Bukalapak was introduced in 2017 with the objective of providing additional services to merchants such as online bill payments and phone top-ups, as well as linking merchants with consumer goods distributors.

About 6 million vendors and 90 million active customers currently use the e-commerce site. According to a Reuters survey, Bukalapak raised $234 million in April in a funding round led by Microsoft, Singaporean sovereign wealth fund GIC, Indonesian media conglomerate Emtek, and South Korean web portal Naver Corp.

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