Bukalapak Targets Its Business Can Last Up to 100 Years
Bukalapak plans to build a sustainable business. The e-commerce company even targets its business to last for 100 years. So far, Bukalapak has been in business for 10 years. Bukalapak CEO Rachmat Kaimuddin said there were only 4 out of 100 e-commerce companies that could last that long.
E-commerce which was founded in 2010 has also become a unicorn with a valuation of more than US $ 1 billion. According to him, Bukalapak is part of 433 companies around the world with a valuation of more than US $ 1 billion.
“Two milestones have been achieved in Bukalapak. Only one more, Bukalapak wants to be able to survive for 100 years,” Rahmat said in Jakarta on Friday (10/1).
He said, currently, there are only 0.00.45% of companies in the world whose age can be more than 100 years. Bukalapak also has several strategies to achieve these targets, namely preparing organizations that have strong human resources and expanding the reach of MSMEs to the international market.
According to Rahmat, the potential of MSMEs to enter the Bukalapak ecosystem in the future is still wide open. “There are still 95% of transactions that have not been done online, so this is an opportunity for Bukalapak,” Rahmat said.
Bukalapak recorded transaction growth last year of 60% compared to the previous year. Bukalapak also recorded gross merchandise value (GMV) until the end of 2019 valued at US $ 5 billion.
Bukalapak’s gross profit in the middle of 2019 tripled compared to the same period in 2018 and managed to reduce half of the losses from EBITDA over the past eight months.
These achievements made Bukalapak obtain a total valuation value of up to US $ 2.5 billion. Plus, last year the unicorn from the country received funding from a South Korean investor, Shinhan Financial Group Co. Ltd.
Furthermore, Rahmat admitted that he had not prepared the Initial Public Offering / IPO to be listed this year. “That is only one way to look for capital so we’re more prepared for a sustainable one. When it’s ready, it’s okay for us to IPO, if not, that’s fine,” Rahmat said.
Bukalapak Notes That There Are 2 Million Transactions Per Month
Bukalapak records 2 million transactions every day with 70 million users and 420 million visits per month. There are 5 million sellers in Bukalapak with 900 more official brands.
Bukalapak’s Co-Founder and President Fajrin Rasyid said that Bukalapak got the achievement because of several factors. First, the safety and convenience factor of shopping at e-commerce.
Fajrin said that currently fashion and electronic products still dominate the most favorite categories on the platform. However, consumers also began to be interested in buying food products, crafts, and various products typical of an area through e-commerce.
This change is driven by consumer confidence that is increasingly confident in security and convenience through the platform. “Shopping in e-commerce is safer, more convenient, and easy to get products that consumers want,” Fajrin said in Jakarta, Wednesday (12/18).
Second, the evener distribution of e-commerce access in various regions in Indonesia. Fajrin gave an example, at the beginning of Bukalapak’s establishment, half of the company’s transactions only took place in Jabodetabek. Because the majority of buyers and sellers of products come from the region.
“Then the last two years, (transactions of MSME products) in Jabodetabek were only 30%, meaning that it was not reduced but because the other regions were actually growing faster,” Fajrin said.
Do Not Want To Burn Money, Bukalapak Focus On Investment And Integration
Bukalapak’s Co-Founder and President Fajrin Rasyid said the strategy of burning money is a rough term for investment. He claims the company invests in a good way.
One way is to provide promotions by considering the level of profit or Return on Investment (RoI). Fajrin also claimed the promotion was not a money-burning strategy.
Bukalapak also believes in this strategy, the company can build a healthy business. “A good investment in our opinion is an investment that supports growth in a healthy way. One of the parameters of healthy business growth is towards sustainability,” said Fajrin.