Microsoft Corp (NASDAQ:MSFT) Enters Deal To Invest In Indonesian eCommerce Company Bukalapak
Microsoft Corp (NASDAQ:MSFT) has signed an agreement to invest in Indonesian e-commerce marketplace PT Bukalapak.com. According to sources, the US tech giant will join the $100 million investment in the eCommerce unicorn whose other backers include GIC Pte and Emtek Group.
Microsoft part of a group investing in Bukalapak
Emtek Group, also known as Pt Erlang Mahkot Teknologi and GIC, will invest between 2.5 billion and $3 billion, according to sources. Following the partnership, Bukalapak will adopt Microsoft Azure to be its cloud platform. The collaboration seeks to leverage Microsoft’s expertise in cloud infrastructure to support the e-commerce services of Bukalapak. The Indonesian company claims that over 12 million micro, small as well as medium-sized businesses and 100 million consumers use the service.
Microsoft Indonesia’s president director Haris Izmee said that the partnership will enhance customers and consumers’ buying and selling experience. According to Bukalapak’s CEO, Rachmat Kaimuddin, the partnership is an indication of Microsoft’s deep collaboration on various tech projects that will transform eCommerce operations and solutions in Indonesia. He added that Microsoft’s confidence turns a spotlight on the company as a leading Indonesian-grown tech player.
US tech companies investing in Indonesia
The US tech giant didn’t disclose the amount it will be investing, but it is important to note that there has been increased investment in Indonesia by US tech companies in recent times. The companies are seeking to leverage the growing smartphone population in one of the most populous nations globally. Already Google (NASDAQ:GOOGL) has invested $350 million in eCommerce company PT Takopedia with Temasek Holdings Pte. Also, PayPal Holdings Inc. (NASDAQ:PYPL) and Facebook Inc. (NASDAQ:FB) have invested a considerable amount in Indonesian ride-sharing company Gojek.
With the deal, Bukkalapak is now closer to hitting its target of raising around $200 million for its online expansion. According to one of the people familiar with the matter, the company is engaging other potential investors to secure more capital. Other existing backers of Bukalapak include South Koreas’ Asset-Naver Asia Growth fund and Jack Ma’s Ant Group Co.