digest #1 | september 2021
TRANSCRIPT
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Digest #1 | September 2021
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Letter FromManagement
Mitra Bukalapak as TheLeading O2O Platform
Table ofContent
#NumpangLapak Story FromMitra Bukalapak
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LetterFrom Management| Teddy Oetomo, President at Bukalapak
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Welcome to our first newsletter!
Bukalapak’s fortnightly newsletter is a place where our management will provide
updates, progress, and insight into our thinking. Indonesia continues to provide
significant growth potential for Bukalapak. This is evident from the 56%YoY TPV
growth generated by the company in 2Q21. With this growth potential, it is tempting
to focus on the magnitude of growth and disregard the quality and cost of growth. We
believe a path that focuses only on the magnitude of growth will be detrimental to the
long-term prospects of the company. We believe in achieving sustainable growth while
continuously enhancing the quality of growth and cost of growth. Bukalapak is making
progress with our strategy with the 2Q21 net loss reduced by 31%YoY along with positive
TPV growth.
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Bukalapak’s 2Q21 growth has largely been supported
by a 237%YoY growth in our Mitra TPV. This further
underlies the success of our O2O strategy.
Indonesia is a country with the fourth largest population
in the world, with most of its population residing outside
tier 1 cities. We believe that our all-commerce strategy,
that combines both online and offline initiatives is
instrumental to address the needs of these consumers
in non-tier 1 cities. Over 70% of Bukalapak’s business
today is from outside tier 1 cities of Indonesia and
this differentiation from other e-commerce players is
possible through our Mitra strategy.
The contribution of the Mitra segment in Bukalapak
continues to grow, representing 48% of TPV and 33%
of revenues in 2Q21, significantly higher than the 22%
of TPV and 12% of revenues recorded in 2Q20. While
Mitra revenues were flat QoQ, this is largely due to a one
off accounting booking in 1Q21.
When we control for this accounting booking,
revenues after cost of sales (contribution margin)
of Mitra grew by 37% QoQ in 2Q21, showing the
strong growth of monetization of our Mitra
segment.
237%YoY growth inour Mitra TPV
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Contribution margin after S&M of our Mitra segment
improved from -1.4% of TPV in 2Q20 to -0.4% of TPV in
2Q21. This shows the improvement in the Mitra segment
to cover more of the business’ variable costs.
Our marketplace continues to deliver meaningful
performance. This can be seen from the
segment’s contribution margin after sales
and marketing reaching IDR 5 billion in 2Q21.
Through the first 6 months of 2021, Bukalapak’s
operating cash outflow was IDR 751bn. With over IDR
21tn in cash balance from the IPO, Bukalapak
has almost 15 years’ worth of cash runway at the
current rate of burn.
This strong position allows the management to ignore
short-term noise and focus on delivering sustainable
long-term growth performance, as we steer the
company on its path to profitability.
| 2Q21 market recorded positive
contribution margin after sales
and marketing expenses of
IDR 5 billion
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Mitra Bukalapak as the leading O2O platform
The establishment of Mitra Bukalapak was motivated by
the large number of Micro, Medium, and Small
Enterprises (MSMEs) that have not been digitized. In
Indonesia, based on data from “E-warung, Indonesia’s
New Digital Battleground” report released by the CLSA
Ltd group in September 2019, 70% of total retail sales in
Indonesia are still offline. 65% of these offline retail
sales are served by warungs.
In 2017, Bukalapak launched Mitra Bukalapak to help
Indonesian traditional kiosks (Warung) compete with
modern retailers. With the help of Mitra Bukalapak, these
shops can now offer additional online services such as
bill payments and phone credit top-ups to their
customers. In 2018, Mitra Bukalapak members consisted
of ~1,3 million Mitras. Now, the number has been
significantly increasing to 8,7 million Mitras and individual
agents spread throughout Indonesia.
A research conducted by Nielsen in June 2021 on 3000
general trade and kios pulsa (phone credit sellers) found
that among 14 cities across Indonesia, 14,8% O2O
penetration is led by Mitra Bukalapak with a penetration
of 42%.
It is currently the highest number of penetration
compared to the existing competitors. In the general
trade segment that uses O2O platform, Mitra Bukalapak
leads penetration in Groceries penetration at 55% and
Virtual Products penetration at 52%. With these
numbers, Mitra Bukalapak is currently in line with the
goal of digitizing the Indonesian conventional market, and
continue to realize its mission to make
#WarungNaikKelas.
2018
~1,3 million Mitras
2021
~8,7 million Mitras
Mitra Bukalapak is the leading O2O platform for General Trade and Kios Pulsa across 14 cities in Indonesia with the penetration of
42%in general trade segment that uses O2O, Mitra Bukalapak leads the grocery segment with a penetration of
55%Mitra Bukalapak also leads the virtual products segment with a penetration of
52%
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#NumpangLapaka social movement for MSMEs
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In celebrating Indonesian Independence Day, Bukalapak created a program titled #NumpangLapak, where
Bukalapak collaborates with the community in helping MSMEs gain exposure by providing free opportunities
to promote their businesses on Bukalapak’s marketing channels.
A survey conducted by The Indonesian Institute of Sciences (LIPI) through the Center for Economic
Research (P2E) showed that 94% of MSMEs experienced a decline in sales due to COVID-19. Through the
#NumpangLapak program, Bukalapak wants to help them overcome this issue.
Since this program was launched, people were very excited to contribute.
people participated to support, helped in sharing the campaign, sold and promoted MSMEs products
estimated number of article views published by various tier-1 local media such as Kompas, Liputan6, Antara News, and etc.
total of impressions from Bukalapak’s marketing channels| 213,000+
| 5,100+
| 87,8 million
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One of the ways we can help MSMEs in the midst of this
pandemic is by working hand in hand with the community.
So many of them are struggling to sell their products and
services. If we can help promote them, we can boost their
spirit in maintaining their business resilience.
| Erick Wicaksono, VP of Marketing Bukalapak
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Story fromMitra Bukalapak
One of our Mitra Bukalapak partners from West Jakarta has been running his Warung since 2018. Rasyid,
as he is known, had difficulties in keeping up with today’s era of connectivity, hence hindering his business
from growing.
This concern led Rasyid to join Mitra Bukalapak, which has since allowed him to unlock new opportunities
in advancing his business. Now he carries several virtual products and services. He is also managing a
dropshipping business that can be done using the app, including purchasing store supplies and getting
them delivered to his doorstep.
“I use the wholesale product because I need to restock my goods for my Warung. On the other hand, virtual products such as phone credit, internet packages and bills, electricity tokens and bills, landline bills, and more are among the most favorite products here. But for myself, I do love money transfer features, shipping agent, Millionaire/dropship features. This is because those kinds of features could give a good amount of income, without even using our fund in the first place. Now, I can increase my income by 3x.”| said Rasyid / Bang Alam
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Bukalapak Headquarter
Metropolitan Tower, Jl. R.A. Kartini No. 10, RT.10/RW.4,
West Cilandak, Cilandak, South Jakarta City, Jakarta 12430
Phone : 150133 (BukaBantuan) | https://about.bukalapak.com/id/
Corporate Secretary | [email protected]
For Media Inquiries | [email protected]
You can keep in touch with us!As we thrive on making a faireconomy for all, our door never closes.