BRI Ventures Backs Local Unicorn Bukalapak
BRI Ventures, the corporate venture capital arm of Indonesia’s Bank BRI, has made a strategic investment of an undisclosed amount into one of the nation’s largest e-commerce brands Bukalapak.
The deal is categorically in line with Bank BRI’s mission to bolster and digitize micro, small, and medium enterprises (MSMEs) throughout the country. Currently, more than 13.5 million local MSMEs operate within Bukalapak’s digital ecosystem.
With the new deal comes an important partnership. Bank BRI will be able to offer its digital banking and lending products to merchants and customers on Bukalapak. The deal also signifies BRI Ventures’ commitment to increasing financial and economic inclusion throughout Indonesia. The keystone to achieving this, according to the firm, is sustainably empowering small businesses with working capital.
BRI Ventures’ CEO Nicko Widjaja explained, “This strategic investment into Bukalapak is very important because it fuels the mission of BRI Group in supporting MSMEs. With the massive growth of digital MSMEs we’re seeing today, we believe that they will be the support pillars of our national economy in the future. This also plays a part in BRI Ventures' commitment to strengthening the tech startup sector in Indonesia.”
Recent data from the nation’s central bank indicates that 87.5% of MSMEs were affected by the pandemic-driven economic downturn. However, it also shows that 27.6% of MSMEs operating online actually saw sales increase in 2020 and beyond. This illustrates the increasing importance for companies of all shapes and sizes to embrace online business models and digital adaptation in emerging Asia.
In recent years, Bukalapak has moved beyond its original e-marketplace model and into fintech and digital services. Through its online-to-offline platform Mitra Bukalapak, the company has reached more than 13.5 million MSMEs and more than 100 million users throughout the archipelago. In 2019, it launched its B2B e-procurement business unit through BukaPengadaan Indonesia. It also rolled out its signature platform for buying and selling mutual funds (BukaReksa).
With these products and more on the way, Bukalapak’s business roadmap dovetails nicely with what BRI Group brings to the table. This includes but is not limited to digital lending and savings products for business owners, as well as fresh capital from BRI Ventures.
Widjaja added, “We hope that this collaboration between two of the most important companies in Indonesia -- with a singular mission -- will be able to help accelerate tech adoption, but also continue to spread economic inclusion to micro-entrepreneurs who truly need it. We know that through Bukalapak, BRI Group can also offer accessible business support to any small business, no matter where they are in the country. I’m confident that local, digital MSMEs will soon be more resilient and sustainable than ever before."
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