Bukalapak Reportedly Received IDR 3.4 Trillion from Microsoft, GIC

E-commerce startup, Bukalapak is reported to have earned investment of US$ 234 million or around IDR 3.4 trillion. This funding round was led by Microsoft, Singapore’s GIC sovereign wealth fund, and Indonesian media conglomerate Emtek.

Other investors involved in the funding are “Standard Chartered’s investment arm, namely SC Ventures and the South Korean web portal Naver Corp,” the document was quoted as saying by Reuters, Wednesday (14/4). The news that Microsoft injected Bukalapak capital has been blowing since November 2020.

A Bloomberg source said the company from the United States (US) invested US$ 100 million or around IDR 1.46 trillion. At that time, Bukalapak announced its collaboration with Microsoft’s subsidiary, Microsoft Azura.

“This partnership marks a deep collaboration with Microsoft in a series of technology projects that will transform technology-based trading solutions as well as solutions and operations in Indonesia,” said Bukalapak CEO Rachmat Kaimuddin, quoted in a press release, November last year (3/11/2020).

Bukalapak and Microsoft are Collaborating on Three Initiatives

Through this collaboration, Bukalapak and Microsoft will collaborate on three initiatives. First, build a strong infrastructure, one of which is cloud computing (cloud) from Microsoft Azure.

Second, bridging the digital divide. Finally, providing digital skills training for Bukalapak employees and traffickers.

Bukalapak is optimistic that the technology will support the company serving each of the six million online Micro, Small and Medium Enterprises (MSMEs) partners and stalls, as well as 100 million customers.

In January, the unicorn also reportedly received US$ 200 million or around IDR 2.8 trillion in funding from Standard Chartered Plc. The two companies also have a strategic partnership to provide financial services in Indonesia.

“The former investor, Naver Corp. and Mirae Asset-Naver Asia Growth Fund are also close to signing an agreement for additional funding,” said a Bloomberg source with knowledge of this, quoted last January (14/1).

Although he did not confirm the news of the funding, Bukalapak CEO Rachmat Kaimuddin said that Standard Chartered’s participation would further strengthen the ranks of shareholders and strategic partners.

The collaboration will also focus on digital banking services, with the banking as a service solution, Nexus. “This partnership increases our enthusiasm for realizing a fair economy in Indonesia,” he said in a press release, January (14/1).

There are at least two main focuses of the partnership. First, presenting innovations in the field of financial services and e-commerce. Both will offer a variety of innovative financial services through the Bukalapak ecosystem.

Second, encouraging financial inclusion in Indonesia. Moreover, Bukalapak has 100 million users and 13.5 million MSME players.

Supporting MSMEs, BRI Ventures is a Strategic Investment in Bukalapak

The venture capital company BRI Ventures officially announced that it has made strategic investments to support 13.5 million MSMEs in Indonesia within the Bukalapak ecosystem, Thursday (15/4/2021).

This is part of BRI Ventures’ commitment to continue encouraging financial inclusion in Indonesia and creating sustainable MSME empowerment, and as part of a strategic funding activity carried out by the Indonesian unicorn, Bukalapak, which was announced at the end of last year.

MSMEs in Indonesia have a very important role in the national economy, where based on data from the Ministry of Cooperatives, UKM and BPS, it is noted that MSMEs are a sector that contributes 60.34% of national GDP and absorbs 58.18% of total investment in Indonesia.

BRI Ventures CEO Nicko Widjaja said this strategic investment with Bukalapak is very important to do, because this is in line with the BRI Group’s mission in supporting MSMEs.

In the covid-19 pandemic that hit the world, Bank Indonesia data recorded that 87.5% of MSMEs were affected by the pandemic. However, 27.6% of MSMEs that run their businesses online have actually experienced an increase.