Bukalapak Launches "BukaBangunan", Building Materials Procurement Service Through Partner Network

PT Bukalapak.com Tbk (IDX: BUKA) is preparing to widen its business scope to the marketplace B2B for building or construction materials. Named "OpenBuilding", this unit is under the auspices of the program Bukalapak Partner.

Currently BukaBunan already has its own application. Shaped marketplace with a typical categorization of building material products, such as cement, wood, sand, electronic equipment for buildings, and so on.

Presence OpenBuilding also considered relevant, to be able to take advantage of the power of the channel online-to-offline (O2O) which has been built by Bukalapak through its partnership program. Currently, there are around 14 million stalls and MSME actors who have joined. They are spread in more than 200 cities in Indonesia.

Through the BukaBangunan application, later partners can sell various material needs in their stores. This includes placing orders from distributors in the Bukalapak network.

A lot of work marketplace building material

This year a number of startups marketplace Related B2B also debuted, trying to democratize the building materials market with a touch of technology. In fact, a number of startups have received initial funding from venture capitalists.

Supply chain inefficiency and complicated procurement processes are among the paint point trying to solve. They also handle retail purchases for the construction of private property, as well as for large construction needs.

BRIK is one of the startups at play here. Last June 2022 they just got an initial funding of 59 billion Rupiah led by AC Ventures. BRIK's vision is to shorten the distribution chain of construction materials through a high-tech procurement platform, connecting buyers with construction materials manufacturers.

Other similar platforms exist Tokban and GoCement. There is also AMODA which focuses on delivering a SaaS platform for project management. The opportunity is indeed quite large, considering that digitization in this sector has only just begun.

Menurut exposure submitted by the Ministry of Trade of the Republic of Indonesia, market size B2B commerce in Indonesia will reach $21,3 billion by 2023. Meanwhile, according to a Mordor Intelligence report, the size of the building construction market in Indonesia has reached $10,97 billion in 2022. This is a big enough opportunity for startup activists to explore.