Indonesia’s Bukalapak to shut down physical goods marketplace

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Indonesia-based ecommerce firm Bukalapak announced that it will be shutting down its marketplace for physical goods and shift its focus to virtual products. The latter include mobile credits and internet packages. It also lets users pay for their electricity, water, and cable TV bills, among others.

In a message to its users, the company said that the last day for placing orders will be on February 9, 2025.

All orders that have not been processed by sellers by March 2 will be automatically canceled. Meanwhile, balances in Bukalapak’s e-wallets can be transferred to users’ bank accounts until March 14.

In its Q3 2024 earnings update, the company revealed that it had been “reevaluating the prospects of several business segments” and decided that “restructuring is required” to achieve its objectives.

Bukalapak said its core business focus moving forward will include Mitra Bukalapak (its online-to-offline arm) as well as gaming, investments, and certain retail services. This restructuring, it said at the time, would result in layoffs over the next two quarters.

However, it is unclear whether the layoffs have already begun following the closure of its marketplace. It is also unclear if the company will subsequently close its e-wallet.

The company’s revenue for its marketplace business in the first nine months of 2024 was US$113 million, approximately half of its total revenue for the same period. However, it did not provide a breakdown between physical and virtual products. 

Willix Halim, CEO of Bukalapak, said the firm has “made every effort” to tackle its issues. However, the losses and industry challenges faced by its various business segments and subsidiaries over the past three years have prompted the company to refocus its business.

Bukalapak’s stock ended the day trading 1.7% higher. However, it has lost 39.6% over the last year, as of January 7.

“We are also focusing on the growth of the company and its subsidiaries to continue improving in the future, providing benefits to stakeholders, especially shareholders,” a Bukalapak spokesperson tells Tech in Asia.

See also: Bukalapak’s president on its IPO’s ‘sheer luck’ and why he’s not worried over stock prices

Currency converted from Indonesian rupiah to US dollar: US$1 = 16,161 rupiah.