Could gaming be Bukalapak’s key to profitability?

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Since the game MapleStory was released, gaming has become one of the most entertaining ways for me to pass the time. As someone living in Southeast Asia, Garena’s games played a huge part in my life.

I’m not the only one who has spent most of my time playing games published by Garena either, and many other gamers have invested more than just time on the company’s titles. The gaming giant has traditionally been a huge money-maker for Sea Group, helping it balance out losses from other arms such as Shopee.

Indonesia’s Bukalapak could soon be following in these footsteps, as it appears to be preparing for an entry into the gaming industry. In today’s story, we explore why Bukalapak is looking to make such a move and what that could mean for the firm after its US$1.5 billion IPO last year.

Today we look at:

• Bukalapak’s possible move into the gaming sector
• A fresh patch of funding for an e-grocery startup
• Other newsy highlights such as a new Web3-focused fund from Indonesia and Grab’s new sharia-compliant financing product

Premium summary

Game on

Image credit: Timmy Loen

Bukalapak made waves with its IPO last year, but going public has not been kind to the firm. Despite reducing its losses, the company’s share price has continued to drop. But with a move into gaming and further inorganic growth in the sector, Bukalapak seems to have a plan to turn this around.

• Monkey Sea, monkey do?: Some observers believe that Sea’s model could be the inspiration for Bukalapak stepping into gaming. The latter’s acquisition of Itemku, an online marketplace for game-related digital products, and its investment into Yield Guild Games Southeast Asia (YGG SEA) could allow Bukalapak to have a “reliable source of profit to combat its losses in ecommerce.”

• The warung factor: While the specifics of Bukalapak’s gaming plans remain unclear, it’s possible that it could leverage its sizable network of warungs to help sell game vouchers or in-game products. This is a crucial factor, considering the rising popularity of mobile gaming in Indonesia. Additionally, by backing YGG SEA, Bukalapak could also be looking to help shop owners earn additional income by playing play-to-earn games during their downtimes.

• Moving into the black: Bukalapak has traditionally favored organic over inorganic growth, but its president, Teddy Oetomo, says that it will not compromise on due diligence processes even as it moves into the gaming industry. Further, Bukalapak’s deals appear to have already brought some success. By the end of Q3 2021, Itemku’s number of transactions grew to 5 million, a 3x year-on-year increase.

Read more: After $1.5b IPO, Bukalapak gets its investment game on

A patch of funding for Sayurbox