Indonesia’s Bukalapak Raises Funding From Standard Chartered for Expansion

Indonesia’ has landed funding fromStandard Chartered Plc as it makes progress toward raising $200 million to finance its expansion in the country, according to people familiar with the matter.

Naver Corp. andMirae Asset-Naver Asia Growth Fund, both existing investors, are also close to signing an agreement for additional funding, according to one of the people, who asked not to be named because the matter is private. Bukalapak has pulled in $100 million fromMicrosoft Corp.,GIC Pte andPT Elang Mahkota Teknologi as part of the ongoing round, Bloomberg Newsreported in November.

Representatives of Standard Chartered, Bukalapak, Naver and Mirae Asset-Naver Asia Growth Fund declined to comment.

Standard Chartered and Bukalapak said on Thursday they formed a strategic partnership to collaborate on digital banking. The online marketplace, which competes with rivals such as Shopee, Tokopedia and Lazada, has about 100 million users and 13.5 million sellers in Indonesia. It is valued at $3.5 billion, according to CB Insights.

The coronavirus pandemic has boosted demand for e-commerce in the world’s fourth most-populous country, where the median age is 30 years. Lockdowns prompted many consumers to try mobile shopping for the first time, and Bukalapak said its transaction volumes more than doubled in 2020 from a year earlier.

There has been a flurry of deals among Southeast Asia’s biggest internet companies in recent weeks.

Singapore’sSea Ltd., the region’s most valuable company, acquired Indonesia’sPT Bank Kesejahteraan Ekonomi, Bloomberg Newsreported this week. Gojek, Indonesia’s most valuable startup, has amassed a 22.16% stake in PT Bank Jago, while Grab Financial Group, the financial services unit of Grab Holdings Inc., raised $300 million, led byHanwha Asset Management Co.

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