Bukalapak posts 35% revenue jump in first earnings report after IPO

Bukalapak, the Indonesian ecommerce major, has clocked a 35% year-on-year jump in revenue to 863.6 billion rupiah (US$60.5 million) for the six months ended June 2021 (H1 2021), following a massive improvement in the performance of its online-to-offline segment, Mitra Bukalapak.

Bukalapak CEO Rachmat Kaimuddin / Photo credit: Bukalapak

Revenue from Bukalapak’s ecommerce marketplace grew roughly 4% to US$37.1 million during the first half, and the segment remained the largest contributor to the group’s topline. The firm’s Mitra business saw a 77% growth in its revenue, which hit US$20.3 million.

As of June this year, Mitra Bukalapak had partnered with over 8 million of Indonesia’s roadside stores, or warungs, to bring Bukalapak’s online offerings offline.

See Also: What’s behind Mitra Bukalapak’s success?

Meanwhile, revenue from its business-to-business procurement segment declined 36% to US$3.1 million in H1 2021.

The Tokopedia rival, which was launched in late 2017, achieved overall growth in revenue and narrowed its losses by 25% to US$53.4 million in the reported period. The company was able to achieve this by lowering its general and administrative expenses by 22% to stand at US$46.2 million.

These savings were able to offset the firm’s larger cost of revenue, which jumped about 70% to US$8.3 million in the period.

One reason for the increase in this expense was that the company spent nearly 65% more on added sales and marketing investment for its Mitra segment, which cost it US$22 million in the first half. In total, Bukalapak’s sales and marketing spend in the period increased by 14.6% year-on-year to US$61.7 million.

See Also: Visual: Bukalapak’s decade-long journey to IPO

This marks Bukalapak’s first earnings report since raising US$1.5 billion from its local listing, which Indonesia’s biggest-ever stock market debut to date. The stock jumped almost 25% to US$0.074 apiece from its initial public offering price of US$0.059 just minutes after the market opened. This lifted Bukalapak’s valuation to around US$7.5 billion.

Currency converted from rupiah to US dollar: US$1 = 14,297.70 rupiah.