1. Startups

Bukalapak Changes IPO Fund Allocation, Encourages Acceleration of Business Growth

In line with Bukalapak's strategy to achieve sustainable growth

PT Bukalapak.com Tbk (IDX: BUKA) announced a change in the allocation of funds obtained in the amount of IDR 21,9 trillion from floor action on the Indonesia Stock Exchange. Bukalapak changed the working capital portion and allocated 33% for the development of the company and its subsidiaries, for example through the purchase or investment of shares and/or assets.

In his official statement, this change in the allocation of IPO funds was approved at the Extraordinary General Meeting of Shareholders (EGMS) of Bukalapak which was held on Wednesday, December 23, 2021.

Bukalapak President Director Rachmat Kaimuddin said that this step was in line with the company's strategy to focus on achieving sustainable company growth. The Company will continue to manage the costs incurred efficiently and assess the potential and opportunities to drive future growth.

In detail, 33% of the IPO funds will be used for the company's working capital. Then, 34% for the working capital of the subsidiary which consists of; Open Partner (15%), Open Business (15%), and Open Investment, Open Procurement, Bukalapak, and Five Jack each 1%.

Bukalapak provides a new allocation of 33% for the business development of the company and its subsidiaries. In his statement, this business development is not limited to the purchase of shares and/or assets, and/or investment in shares in one or more companies including joint venture agreements (j), other appropriate transaction methods, as well as repayment of loan facilities used for business growth and/or development purposes, both now and in the future.

Working capital66%34%
Open Partner 15%15%
Open a business 15%15%
Open Joint Investment1%1%
Open Procurement1%1%
Bukalapak Pte. Ltd1%1%
Five Jack (my item)1%1%
Business development through models; (1) purchase of shares and/or assets, (2) investment in shares in one or more companies, (3) repayment of loan facilities for current and future business growth and/or development purposes -33%

In addition to the change in the use of IPO funds, the EGMS also announced the resignation of Lau Eng Boom from the Board of Commissioners. This EGMS was chaired by the President Commissioner as well as the Independent Commissioner of Bukalapak, Bambang Brodjonegoro.

Lau Eng Boom has started his retirement at Government of Singapore Investment Corporation Pte Ltd (GIC). With this condition, Lau Eng Boon's tenure as Commissioner of Bukalapak ended.

"This EGMS agenda reflects the positive dynamics and commitment of Bukalapak as a public company to continue to grow through various developments. We are optimistic that this development can continue to support Bukalapak's goals towards sustainable growth and profitability," said President Commissioner and Independent Commissioner of Bukalapak Bambang Brodjonegoro.

As is known, Bukalapak officially registered itself as a public company in August 2021 by raising funds of $1,5 billion or Rp.21,9 trillion (at the exchange rate at the time). Bukalapak is listed as a startup unicorn the first one go public in South East Asia.

Support business Existing

If it refers to the achievement of performance and strategic focus, this new allocation of funds can be used to boost the business existing Bukalapak, especially in business lines that have grown significantly, through an inorganic strategy.

As the spearhead of the company's business, Bukalapak Partner have a big homework to digitize the stall and MSME segment. This business unit is also eyeing new growth space with plans to expand to tier 2 and 3 cities. This inorganic strategy can help Bukalapak accelerate the growth of Bukalapak Partners.

Based on financial statements in the third quarter of 2021, marketplace it is still the largest revenue contributor with Rp780,4 billion, but only grew 5,1% on an annual basis. Meanwhile, Mitra Bukalapak's growth skyrocketed by 322% to Rp496,7 billion compared to the same period last year.

Bukalapak is currently enjoying the momentum from the growth of the Bukalapak Partner and its claim to its position which dominates the warung and MSME segments. Bukalapak now has 7 partners in the five years since its launch.

Bukalapak's revenue share is based on its business unit / DailySocial.id

More Coverage:

According to Nielsen's survey of 1.800 warungs and 1.200 credit kiosks, Mitra Bukalapak is listed as the leader in the O2O market with a penetration of 42% compared to O2O players who have 2,5 times more users in this survey.

Contacted separately, Bukalapak Head of Media and Communications Fairuza Ahmad Iqbal could not provide further information regarding the plan for the new allocation. He emphasized that his party is open to opportunities in the sector that can create useful results with the available resources.

"With the approval of this change in the use of IPO funds, we can use the funds to implement the acquisition plan. However, until now there is nothing that we can report," he said.

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