Indonesian e-commerce platform Bukalapak has announced a significant strategic shift, moving away from the sale of physical products to concentrate on its virtual offerings.
The company, which has been evolving since 2021 into a broader e-commerce platform, will gradually discontinue physical product sales starting in February 2025.
It is not immediately clear what virtual products the company plans to sell. We have reached out to the company seeking details.
This move is part of a broader transformation that has seen Bukalapak expand into areas such as virtual products, gaming, retail, investment, and Mitra Bukalapak services. The company stated that this pivot is essential to ensure long-term sustainability and competitiveness, noting changes in market dynamics and industry competition.
This plan was initially disclosed in an Information Disclosure announcement in late October 2024.
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According to an official statement, the discontinuation of physical product sales will not materially impact revenue, as these sales account for less than 3 per cent of the company’s total revenue. Instead, the company views this change as a way to achieve positive EBITDA and maintain a healthy and profitable business.
Bukalapak will continue to operate its marketplace platform, including its app, website, and Mitra Bukalapak services, for its existing services.
The company believes that this strategic focus on virtual products will strengthen its position in the digital ecosystem. Bukalapak has also been developing new business lines such as Mitra Bukalapak, Gaming, Investment, and Retail over the past few years, which are seen as having positive business prospects.
Bukalapak has emphasised its strong financial standing, reporting cash reserves of IDR 19 trillion as of Q3 2024. These funds will be used to support the growth of the company and its subsidiaries.
The e-commerce firm will support its sellers by providing various guides and resources to ensure a smooth transition. The company also assures that customer rights will be upheld throughout the transition process.
Bukalapak’s decision reflects a significant shift in its business strategy to focus on higher growth potential areas within the digital ecosystem. The move signals the company’s intention to remain a key player in the industry by focusing on virtual products and services rather than physical goods.
Since its inception in 2010, Bukalapak has raised US$584 million in venture funding from over two dozen investors, including Microsoft, GIC, Emtek, SC Ventures, NAVER, BRI Ventures, Mandiri Capital Indonesia, Bank Rakyat Indonesia, Mirae Asset Global Investments, Ant Group, and Endeavor.
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