Bukalapak posts 23% revenue growth in 2023, nearly hits EBITDA breakeven in Q4

Photo credit: Bukalapak

Despite a significant improvement in revenue, Indonesian ecommerce firm Bukalapak missed its target to turn profitable in 2023 due to investment losses stemming from Allo Bank.

The company logged adjusted EBITDA for Q4 2023 at negative US$2.9 million, improving by 80% year on year.

“Our record performance in 2023 enabled us to come very close to reaching our quarterly adjusted EBITDA breakeven target in the final three months of 2023,” Bukalapak president Teddy Oetemo said in a statement.

A factor in Bukalapak missing this milestone is its investment in Allo Bank, which dragged down the ecommerce firm’s performance.

Tech in Asia noted in its analysis last year that the company’s first-quarter performance in 2023 was impeded by the continuously dropping share price of Allo Bank.

That said, the ecommerce firm’s main growth drivers continued to improve their revenue contribution to the company.

Bukalapak’s marketplace business reported a 47% year-on-year increase in revenue to US$141.6 million in 2023. Meanwhile, its offline to online business grew by 11% during the same period to US$138.5 million.

“We’re getting ever more confident in delivering our main goal of turning profitable on a quarterly basis imminently, having posted eight sequential quarters of adjusted EBITDA improvement,” Oetemo added.

For 2024, Bukalapak is targeting a 15% to 20% improvement in revenue. It also expects adjusted EBITDA to reach over US$12.7 million for the year.

Oetomo said that the company seeks to continue maintaining “cost discipline” moving forward. Just last February, Bukalapak shut down its buy now, pay later service, BukaCicilan, after almost six years of offering the product.

See also: Bukalapak’s financial health in 9 charts