Bukalapak's Performance Throughout 2021 Supported by Partner Business Growth

PT Bukalapak.com Tbk (IDX: BUKA) posted a total revenue of Rp1,9 trillion, up 38 percent (YoY) throughout 2021. The company's revenue growth was supported by the Partner business line which skyrocketed by 284 percent to Rp764,5 billion from Rp198 billion in 2020.

Based on the 2021 financial report, Bukalapak recorded a decrease in revenue in two other business lines. Marketplace, which is the largest revenue contributor, decreased by 4 percent to Rp. 990 billion compared to the same period last year, which was Rp. 1 trillion. Open Procurement Revenues also fell by 5 percent to Rp120 billion throughout 2021.

The company's loss also swelled by 24 percent from Rp. 1,3 trillion in the same period in 2020 to Rp. 1,6 trillion in 2021. However, the company said it had reduced operating losses by 7 percent to Rp. 1,7 trillion in 2021 from the previous Rp. 1,83 trillion. .

In addition, Bukalapak said it had succeeded in reducing EBITDA losses by 6 percent, better than 2020. The ratio of EBITDA losses to Total Processing Value (TPV) improved to 1,3 percent throughout 2021 from 1,9 percent previously.

TPV and ATV

Bukalapak posted a TPV of Rp122,6 trillion, an increase of 44 percent in 2021. Of this figure, 73 percent came from transactions outside the region tier 1 which was also triggered by the increasing digitization of traditional warungs and retail stores as well as all e-commerce.

In addition, this TPV growth was also supported by an increase in the number of transactions by 26 percent and an increase of 14 percent in Average Transaction Value (TV) throughout 2020 to 2021. Meanwhile, Mitra Bukalapak's TPV increased by 146 percent on an annual basis with an achievement of IDR 56,2 trillion.

"We are committed to focusing on strategies in order to achieve strong and sustainable growth, accompanied by good management of operational costs," said Bukalapak's management statement. Driven by an increase in the number of transactions by 26 percent and a 14 percent increase in Average Transaction Revenue (ATV) compared to 2020 (YoY).

As of the end of December 2021, the company's cash position was recorded at Rp. 24,7 trillion.

Diversification

Based on iPrice report in the second quarter of 2021, Tokopedia is in the top position with the largest monthly web visitors in Indonesia, which is 147,7 million. Followed by Shopee in second place with 126,9 million monthly web visitors. Meanwhile, Bukalapak is in third position with gap which is quite far from the first and second ranks, namely 29,4 million monthly web visitors.

This data can indicate that Bukalapak does not have a strong position compared to the two incumbent players who dominate the market marketplace in Indonesia. Bukalapak's financial performance also showed a decrease in the income of two other business lines compared to Mitra Bukalapak which bagged significant growth.

Bukalapak's focus for digitizing the warung and MSME segments in Indonesia began to show positive achievements. Nielsen's survey of 1.800 warungs and 1.200 credit kiosks identified Mitra Bukalapak as the O2O market leader with a penetration of 42% compared to O2O players who have 2,5 times more users in this survey.

Bukalapak partners are said to have mastered the category Grocery/groceries by 55% and virtual product penetration 52%. Currently, Mitra Bukalapak has various product categories, ranging from physical, virtual, financial products, to products for daily needs.

Bukalapak seems to be starting to diversify its services to encourage revenue streams new. It can be seen from the acquisition of edtech startups and the formation of joint ventures in the first quarter of 2022. Interestingly, even though they already have a line marketplace, Bukalapak actually tried it quick commerce for fresh produce through its joint venture with CT Corp, namely AlloFresh.

In addition, Bukalapak has also entered the edtech realm by acquiring startup Bolu at the end of March 2022. Bolu targeting online learning for the community segment, especially those who want to develop a home business. This is in line with Bukalapak's efforts to digitize stalls and MSMEs through Partners.