Bukalapak, the first Indonesian tech unicorn to go public, and DBS Indonesia signed the uncommitted revolving short-term loan facility agreement on Nov. 12. The loan, made without specific guarantees or collateral, will mature within one year. The interest rate is 4.5 percent per annum.

Bukalapak corporate secretary Perdana Saputro said the loan was part of the company’s strategy to diversify its sources of funding, in addition to the equity raised through its initial public offering (IPO). 

“The context behind obtaining the banking facility is for the company to utilize such a facility as a bridging facility to expand its business,” Perdana was quoted in a statement as saying on Monday.

The loan facility came a few months after the e-commerce giant raised Rp 22 trillion through its IPO at the Indonesia Stock Exchange (IDX) in July.

Bukalapak has said it would focus fresh funding on expanding its e-procurement business Mitra Bukalapak, which concentrates on warung (small kiosk) and is considered the company's main growth engine and competitive edge over rival e-marketplaces such as Tokopedia and Shopee.

Read also: Bukalapak to be profitable in 2023: Macquarie Research

Perdana added that the loan facility would raise the company’s obligations, but would not negatively affect its financial performance.

Bukalapak booked a net loss worth Rp 766.23 billion in the first half of the year, down by 25.32 percent from a year earlier. Australia-based business intelligence firm Macquarie Research projected Bukalapak to become profitable in 2023, driven by higher earnings and low marketing costs.

Bukalapak saw its share up by 2.9 percent to Rp 710 apiece on Wednesday from the previous close.

In a previous report, Bukalapak got off to a blazing start of trading on Aug. 6 as the first unicorn to go public in Indonesia, following the biggest initial public offering (IPO) the country has ever seen.

The company, which is listed under the ticker symbol BUKA on the IDX, saw its stock rise 24.71 percent to Rp 1,060 (74 US cents) apiece during the first hour of trading, from its IPO price of Rp 850.

IDX president director Inarno Djajadi said Bukalapak’s IPO had attracted 96,000 investors.

“This listing has made history because Bukalapak is the first unicorn to list on the IDX and in the Southeast Asian stock markets,” he said on Aug. 6. “We hope that Bukalapak can become an inspiration for unicorns, centaurs and other tech companies to make the IDX their house of growth.”

Bukalapak is the 28^th company listed on IDX this year and the 740^th overall.

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