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GoTo to increase stake in offline retailer Hypermart
GoTo Group will participate in PT Matahari Putra Prima's (MPPA) upcoming rights issuance, increasing the tech company's stake in the retailer that operates the Hypermart chain.
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A customer shops for groceries in a supermarket in Jakarta on July 2. (Antara/Rivan Awal Lingga)
T
ech giant GoTo Group has announced it will be a standby buyer for retail heavyweight PT Matahari Putra Prima's (MPPA) rights issuance in the fourth quarter of this year, amid a flurry of funding directed at the grocery segment.
Publicly listed MPPA, which operates the Hypermart chain, announced on Tuesday that it would raise capital to invest in an “omnichannel retail strategy” and increase its market share. PT Multipolar, a subsidiary of Lippo Group and an existing MPPA shareholder, would also participate in the funding.
Part of GoTo Group, Gojek already owns a nearly 5 percent stake in MPPA in a deal made through affiliate PT Pradipa Darpa Bangsa in May.
“We are excited that the company has secured the capital raise and look forward to continuing to execute our plan and innovate for the Indonesian consumer,” MPPA chief executive Elliot Dickson said in a press statement.
The company said it had been able to capitalize on the pandemic-fueled rise in e-grocery shopping and had seen online sales more than quadruple over the past year.
MPPA booked a Rp 91.5 billion loss in the first half of the year, better than the Rp 219.3 billion loss it recorded over the same period last year. It also saw its revenue decline 3.4 percent year-on-year (yoy) to Rp 3.5 trillion in the first half.
Despite a lackluster financial performance, MPPA’s online sales increased as a percentage of total sales during the COVID-19 pandemic, and it aims to have 15 percent of its total sales in 2021 come from online channels.
