...

Bukalapak Posts Sales Jump in First Report Since Record IPO




  • In Business
  • 2021-09-01 02:07:46Z
  • By Bloomberg

(Bloomberg) -- Indonesian e-commerce operator PT Bukalapak.com posted a 35% increase in first-half revenue and narrowing losses in the debut report since its initial public offering, driven by surging demand for online shopping as the coronavirus raged.

Revenue rose to 864 billion rupiah ($60 million) as transactions processed reached almost $4 billion, the Jakarta-based company said in a statement. Net loss shrank to 766 billion rupiah from 1.03 trillion rupiah a year earlier as the company reduced expenses.

Bukalapak went public in August after raising $1.5 billion in Indonesia's biggest-ever IPO. The share price has fluctuated since as investors gauged the company's prospects in Southeast Asia's rapidly expanding but competitive e-commerce market. The stock surged 25% on the first trading day, though it has pared gains since and was little changed at 940 rupiah in early Wednesday trading, leaving it 11% above the 850 rupiah IPO price.

The company operates two key business units: Bukalapak Marketplace connects buyers and sellers, while Mitra Bukalapak serves mom-and-pop kiosks known as Warungs. This year's total processing value is set to reach about $9 billion, President Teddy Oetomo said during a conference call Tuesday evening from Jakarta.

"Indonesia offers a strong growth momentum," Oetomo said, adding he thinks the company's valuation is "still at an attractive level."

Analysts are bullish too, with all nine tracked by Bloomberg recommending buying Bukalapak shares.

Using the Mitra Bukalapak app, shop owners can order instant noodles and other goods when their inventory gets low, all delivered to their doorsteps. The Mitra platform also allows them to help customers without access to internet and banking services to pay electricity bills and send money digitally.

Get More

Second-quarter revenue rose 37% to 440 billion rupiah, while loss before interest, taxes, depreciation and amortization narrowed by about a third to 407 billion rupiahMitra Bukalapak's contribution to the company's revenue increased to 33% in the second quarter from 12% a year earlierFirst-half revenue from Mitra Bukalapak more than quadrupled to 290 billion rupiahFirst-half total processing value at Mitra Bukalapak more than tripled to 23.9 trillion rupiah

(Updates with comment from executive in fourth paragraph.)

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

COMMENTS

More Related News

Asia Stocks Seen Steady as Treasury Yields Rise: Markets Wrap
Asia Stocks Seen Steady as Treasury Yields Rise: Markets Wrap

(Bloomberg) -- Asia stocks are set to start the week under pressure with traders keeping an eye on China Evergrande Group's debt crisis and the pace of...

Pelosi Says Infrastructure Plan Will Pass U.S. House This Week
Pelosi Says Infrastructure Plan Will Pass U.S. House This Week

(Bloomberg) -- House Speaker Nancy Pelosi pledged to pass a $550 billion infrastructure bill this week and avoid a U.S. government shutdown, setting up an...

Evergrande Not Enough to Deter Investcorp From China Expansion
Evergrande Not Enough to Deter Investcorp From China Expansion

(Bloomberg) -- Investcorp Holdings BSC, one of the largest foreign buyers of U.S. real estate, remains bullish on the world's biggest economy and expects the...

Elon Musk Takes Part in China Event Led by Xi Cooperation Pledge
Elon Musk Takes Part in China Event Led by Xi Cooperation Pledge

(Bloomberg) -- Tesla Inc. Chief Executive Officer Elon Musk spoke at the opening of China's World Internet Conference, reassuring Beijing about his company's...

From Nairobi to Ningbo: See the Supply Shocks Spanning Globe
From Nairobi to Ningbo: See the Supply Shocks Spanning Globe

(Bloomberg) -- Supply Lines is a daily newsletter that tracks trade and supply chains disrupted by the pandemic. Sign up here.Most Read from BloombergHow Los...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business