Microsoft is participating in a $100 million investment in the Indonesian eCommerce site PT Bukalapak.com, according to a Bloomberg report on Tuesday (Nov. 3), citing sources.
The U.S. tech giant will join previous investors GIC Pte and PT Erlang Mahkota Teknologi — known as the Emtek Group — in backing Bukalapask at a $2.5 billion to $3 billion valuation, the sources told Bloomberg.
“Through this partnership, merchants and consumers will have a more efficient and reliable buying and selling experience,” Haris Izmee, president director of Microsoft Indonesia, said as part of a joint statement from the two firms.
The companies said they are collaborating to reshape the Indonesian eCommerce landscape. Bukalapak also said it was making Microsoft Azure its preferred cloud platform.
Microsoft said it was investing in Bukalapak, but no dollar amount was made public.
Microsoft’s cloud infrastructure will be used to support Bukalapak’s services, which are now used by over 12 million businesses and 100 million customers.
“This partnership signals a deep collaboration with Microsoft on an array of technology projects that will transform the technology-driven commerce solutions and operations solution and operations in Indonesia,” said Rachmat Kaimuddin, chief executive officer of Bukalapak.
He added having “Microsoft’s confidence” turns a spotlight on Bukalapak as the “leading homegrown technology player in Indonesia.” The company’s goal is to generate “a positive impact” on its customers and Indonesia.
The two companies will collaborate on building a resilient infrastructure to support Bukalapak’s 6 million-plus online and offline merchants, and its 100 million customers. The companies said they will also work together to make digital relevant to more people and offer training to Bukalapak’s employees and merchants.
“Bukalapak and their services have had a real and enduring impact on Indonesian society, and their innovation mindset in a rapidly changing market will create new opportunities for merchants, businesses and consumers,” said Izmee.
He added that the company is looking forward to connecting Bukalapak “with a trusted cloud” and working together to provide a stable eCommerce environment for merchants and consumers and “accelerate growth in the Indonesian digital economy.”
Ant-backed Bukalapak is striving to create banking agents from the small businesses on its B2B eCommerce platform, in conjunction with a partnership with Bank Mandiri, Indonesia’s largest bank. The plan is to help people without smartphones open bank accounts.