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No bubble in IT start-up sector: Bukalapak
The owner of startup Bukalapak has refuted Kaskus cofounder Ken Dean Lawadinata’s statement that Indonesian IT-based start-up companies are in a bubble because of overvaluation.
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Indonesian e-commerce has been emerging rapidly in recent years. (Shutterstock/-)
T
he owner of startup Bukalapak has refuted Kaskus cofounder Ken Dean Lawadinata’s statement that Indonesian IT-based startup companies are in a bubble because of overvaluation.
Bukalapak cofounder and chief financial officer Muhammad Fajrin Rasyid said in Jakarta on Tuesday that it was wrong to say that Indonesian start-ups were in a bubble because their valuation was still relatively moderate.
"Now, high transactions and the number of customers are no longer the main valuation factors,” Fajrin said, adding that there were other factors that determine the realistic value of a start-up.
Other factors, he went on, like customer service, problem handling and customer satisfaction were also important elements in deciding the value of companies.
Kaskus’s cofounder Ken Dean Lawadinata said earlier that the IT sector was in a bubble because the valuation of existing start-ups was unrealistically high despite the fact that most of them had yet made profits.
Fajrin said investors were also aware of the condition Indonesian start-up companies were in as they were suffering losses from their investments. (hen)
