Bukalapak buddies up for Indonesia’s digibank race – The Executive Brief

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Hello reader,

“Synergy” is what corporate folk (and financial journalists) use to refer to the benefits of collaboration between companies. I recall beads of sweat rolling down my forehead the first time I came across the fancy word in my early days as a reporter. Fret not, though!

As per Investopedia, synergy stands for the idea that the value and performance of two companies combined will be greater than the sum of each on their own. In other words, if the situation permits, working together is better than working alone.

These synergies form a key line of reasoning behind Bukalapak’s US$83 million deal to buy a 12.05% stake in CT Corp’s Allo Bank. “The impact on Bukalapak doesn’t seem to be direct. It’s more about synergies to leverage multiple other relationships, especially for the sake of Mitra Bukalapak transactions,” says Aldi Adrian Hartanto, vice president of investments at MDI Ventures.

Bukalapak’s arrival in Indonesia’s digital banking scene has only taken the competition up a notch. In our premium story pick today, we bring you the low-down on what drove Bukalapak’s entry into the fiercely competitive digibank arena.

Today we look at:

• Bukalapak’s entry into Indonesia’s digital banking race
• The series B round of an event-led engagement platform
• Other newsy highlights such as Gojek expanding into enemy territory and Livspace becoming Singapore’s latest unicorn

Also, if you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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Reaping rewards synergies

Image credit: Timmy Loen

On the face of it, working together for a better outcome sounds like a simple task with great benefits. While it might be so among individuals, it’s different for corporations. Collaboration among companies requires diligent implementation and coordination on a lot of moving parts to be successful.

Synergies do not magically appear when the ink on the deal sheet has dried. From tweaking internal business processes to altering in-house technological infrastructure, Bukalapak has to do it all before enjoying the benefits of its Allo Bank deal.

• Turning tides: Bukalapak’s investment in Allo Bank challenges the argument that conglomerates like Allo Bank parent CT Corp are only interested in dominating industries, says Bukalapak president Teddy Oetomo. “The attraction is that we have created such a broad, multi-ecosystem partnership, which has the potential to be big,” he tells Tech in Asia.

Up in the air