Under Construction

Source: Thailand Medical News  Sep 11, 2019

One Of Indonesia’s Five Startup Unicorns, Bukalapak 'Dying'? More To Follow?

One Of Indonesia’s Five Startup Unicorns, Bukalapak 'Dying'? More To Follow?
Source: Thailand Medical News  Sep 11, 2019
New was circulating today and news agencies were busy with news breaking out that a huge number of employees had been laid off from multiple divisions and also that many of its offices were being closed in secondary cities including Surabaya and Medan, two major economic hubs.

Bukalapak Iffices In Surabaya Closed

As of press time, no senior executives of Bukalapak could be contacted but laid off employees were saying that the company seems to be in a bad shape and also reports were confirmed that many offices were also closed.Messages raised by Thailand Startup News via sms to the founders of Bukalapak were unanswered.

Bukalapak was one of Indonesia’s five unicorns that founded as an e-commerce platform by Achmad Zaky, Fajrin Rasyid, and Nugroho Heruchayono.

A source from the company did reveal that perhaps the layoff is a move to restructure its company’s multiple divisions. It was further reported that there will be a meeting to announce the decision officially to all affected employees. It is not clear how many employees had been laid off.

The news comes after Bukalapak’s recent moves of foraying into digital insurance by partnering with Axina last month and the launch of BukaGlobal in Singapore back in May 2019, which is its first international office.

In March 2019, Bukalapak also partnered up with three local peer-to-peer (P2P) lending services; Amartha, Modalku, and PohonDana, to launch Modalmitra, aimed at kiosk owners to have better access to credits.

Bukalapak was first introduced in 2010 to facilitate online selling and buying of different goods all under one platform. Backers of Bukalapak include Ant Financial, Mirae Asset-Naver Asia Growth Fund, GIC and Emtek Group, all have contributed to its funding rounds. Bukalapak was the fourth startup that becomes a unicorn in Indonesia.

Many in the industry are skeptical about claims of restructuring and are saying that the company is in dire financial trouble. Some are also saying that over the next few months we will see  more so called successful startups crashing and closing as most were not build on proper and solid business fundamentals. Rather most were ‘vaporware’ build on dreams, speculations and greed of VCs and financial speculators. If that is true, we can expect to see a crisis similar to the dotcom crisis of the past.