Indonesian e-commerce operator PT Bukalapak.com posted a 35 percent increase in first-half revenue and narrowing losses in the debut report since its initial public offering, driven by surging demand for online shopping as the coronavirus raged.

Revenue rose to 864 billion rupiah ($60 million) as transactions processed reached almost $4 billion, the Jakarta-based company said in a statement. Net loss shrank to 766 billion rupiah from 1.03 trillion rupiah a year earlier as the company reduced expenses.

Bukalapak went public in August after raising $1.5 billion in Indonesia’s biggest-ever IPO. The share price has fluctuated since as investors gauged the company’s prospects in Southeast Asia’s rapidly expanding but competitive e-commerce market. The stock surged 25 percent on the first trading day, though it has pared gains since and was little changed at 940 rupiah in early Wednesday trading, leaving it 11 percent above the 850 rupiah IPO price.

The company operates two key business units: Bukalapak Marketplace connects buyers and sellers, while Mitra Bukalapak serves mom-and-pop kiosks known as Warungs. This year’s total processing value is set to reach about $9 billion, President Teddy Oetomo said during a conference call Tuesday evening from Jakarta.

“Indonesia offers a strong growth momentum,” Oetomo said, adding he thinks the company’s valuation is “still at an attractive level.”

Analysts are bullish too, with all nine tracked by Bloomberg recommending buying Bukalapak shares.

Using the Mitra Bukalapak app, shop owners can order instant noodles and other goods when their inventory gets low, all delivered to their doorsteps. The Mitra platform also allows them to help customers without access to internet and banking services to pay electricity bills and send money digitally.

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• Second-quarter revenue rose 37 percent to 440 billion rupiah, while loss before interest, taxes, depreciation and amortisation narrowed by about a third to 407 billion rupiah
• Mitra Bukalapak’s contribution to the company’s revenue increased to 33 percentt in the second quarter from 12 percent a year earlier
• First-half revenue from Mitra Bukalapak more than quadrupled to 290 billion rupiah
• First-half total processing value at Mitra Bukalapak more than tripled to 23.9 trillion rupiah

By Yoolim Lee

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