Microsoft to Invest in Bukalapak

Today (03/11), startup unicorn Bukalapak announced the inauguration of its strategic partnership with tech giant Microsoft. There are two main agendas that will be carried out, first is the plan to adopt Microsoft Azure cloud computing services in the Bukalapak development environment. Then the second, Microsoft will make a strategic investment in Bukalapak.

Since the middle of the year, Bukalapak has been rumored to be raising new funds of up to $100 million or around 1,4 trillion Rupiah. Even by source, previous investors, namely Emtek and GIC, have started injecting funds in this new round since March 2020. It is not yet known for sure what the company's agenda with this new fund is. Bukalapak is still reluctant to comment on the rumors circulating.

Bukalapak's current valuation is estimated at $2,5 to $3 billion. Microsoft's entry in the latest round makes the company quite optimistic. Because it was also reported that the total targeted funds were up to $200 million to support the expansion.

As a global company, Microsoft is quite actively involved in funding rounds for digital startups with a similar agenda. Towards the end of 2018, Microsoft announced a partnership strategic with Grab; provide funding and assistance Grab to adopt their cloud computing services.

And this kind of model is nothing new, take the leak for example Alibaba's investment in Tokopedia 2017 made online marketplace led by William Tanuwijaya adopted cloud computing services Alibaba Cloud to support their server infrastructure.

Previously, another global company that also invested in local startups was Google. It is reported that they are investing in Tokopedia and are planning a number of strategic collaborations.

More plans

In addition to the two things above, Bukalapak and Microsoft will collaborate on several other initiatives. These include bridging the digital divide and increasing competence (digital literacy) for Bukalapak employees and partners.

"As a global technology leader, Microsoft's trust in Bukalapak demonstrates our position as a leading local technology player in Indonesia and our ongoing goal to create a positive impact for our country and customers," said Bukalapak CEO Rachmat Kaimuddin.

From the data submitted, currently Bukalapak claims to have embraced 12 million SMEs in Indonesia, serving 100 million customers spread across various cities. However, according to data collected by iPrice During Q2 2020, Bukalapak's position was still in third place, behind Shopee and Tokopedia. Competition in service E-commerce in Indonesia is quite fierce today.

"Bukalapak and its services have a real, long-term impact on Indonesians, and their innovation mindset in a fast-changing market will create new opportunities for sellers, businesses and consumers [...] Through this partnership, sellers and consumers will gain experience more efficient and reliable trading, which in turn creates business resilience and helps accelerate the growth of the digital economy in Indonesia," said Microsoft Indonesia President Director Haris Izmee.