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Bukalapak to be profitable in 2023: Macquarie Research
The publicly listed e-commerce platform is projected to become profitable in 2023, according to Macquarie Research, and it has moved toward that goal by cutting its net loss in the first half of the year.
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Bukalapak president director Rachmat Kaimuddin (left) and Bukalapak president commissioner Bambang Brodjonegoro (right) hold a certificate from the Indonesia Stock Exchange (IDX) stipulating that the e-commerce company has been listed on the local bourse on Aug. 6. (Courtesy of Bukalapak/-)
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ublicly listed e-commerce platform Bukalapak (BUKA) is projected to book a profit in 2023, driven by higher earnings and lower marketing costs, according to Macquarie Research.
A study from the Australia-based business intelligence firm also projects that Bukalapak will gradually move away from the cash-burning marketing strategy of offering hefty discounts and subsidies.
“We estimate BUKA will achieve positive net profit after tax in 2023, driven by earnings before interest and taxes [EBIT],” states the study, published on Aug. 23.
Bukalapak booked a loss of Rp 763 billion (US$53.4 million) in the first half of the year, down 25.7 percent from the Rp 1.03 trillion loss logged in the same period last year. The company attributed the improvement to rising total processing value (TPV) and higher revenue.
The e-commerce firm noted that its TPV had grown 54 percent year-on-year (yoy) to Rp 56.7 trillion in the first six months of 2021.
The TPV reflects total payments for goods and additional fees, such as for logistics, processed within Bukalapak’s platform.
“The company’s first-half TPV is from beyond tier-1 regions of Indonesia, where it continues to see strong growth in all-commerce penetration and digitalizing trends among offline micro-retail stores,” Bukalapak corporate secretary Perdana “Dano” Arning Saputro said in a press statement on Aug. 31.
