A piece of the e-commerce pie

• 500-backed e-commerce platform Bukalapak has kicked off what is said to be Indonesia’s biggest Initial Public Offering (IPO) in more than a decade. The startup is looking to raise up to US$1.13 billion.
• According to Reuters, Bukalapak is seeking a valuation of up to US$5.6 billion — a number double the level two years ago.
• In an investor briefing, CEO Rachmat Kaimuddin said the startup’s business is focused on micro, small and medium-sized enterprises (MSMEs). He added that around 30% of Indonesia’s e-commerce transactions were estimated to have occurred in second-tier cities last year, but that share is seen rising to 48% by 2025.
• Rachmat also shared that over 60% of the IPO proceeds will be used to invest in the business, which had revenue of US$95.8 million in 2020 and more than 100 million users. The rest will be used to expand Bukalapak subsidiaries.
• According to the article, Bukalapak will be the first tech unicorn to launch an IPO in Indonesia. It is set to make its market debut on 6th August.
• Read the full story on Reuters here.

A super app-etite for growth

• 500-backed Grab’s CEO and co-founder Anthony Tan spoke to Bloomberg about the super app’s growth in the region.
• “The challenge of Grab becoming a public company is to prove the market opportunity in Southeast Asia,” he said, adding that it is a lesser-known region than China or India. But he believes that the market opportunity lies in the 660 million people living in the region — a population bigger than the U.S. At the same time, services such as food delivery, ride-hailing, and digital banking are still relatively new in the market.
• When compared to similar startups such as DiDi or Uber, Anthony said that Grab is first and foremost a super app. He believes the concept works in Southeast Asia, where the population is young and mobile-first. He added that urban cities in the region are dense, making it cost-efficient to deliver goods and services.
• “By having a regional footprint, it is key to sustainability and resilience in our business,” he concluded. Anthony shared that Grab operates in eight countries in Southeast Asia, and not one contributes more than 35% of its revenues.
• Watch the full interview on Bloomberg here.

A healthy alternative

• Azran Osman-Rani, CEO and co-founder of 500-backed Naluri, appeared on a tech show to share what’s next for the startup in Malaysia and the region after raising US$5 million in a Series A round.
• Azran shared that Naluri’s mission is to build a field of digital therapeutics in Southeast Asia. This means building software that either supplements or substitutes traditional therapy. The startup focuses on metabolic conditions such as obesity and diabetes as well as mental health such as depression, anxiety, and stress.
• According to Azran, Naluri’s goal is to get both the medical and insurance industries to accept these services as a viable alternative, and become a standard reimbursable claim.
• He shared that the capital raised goes to clinical research in Europe to build evidence for the app’s efficacy. Why Europe? Azran said, “There aren’t any standards for digital therapeutics in Southeast Asia… We want to be able to shape regulatory standards and have discussions with the health authorities in Southeast Asia, and it’s better to have a reference point.”
• Watch the full interview here.

Missed out the last Daily Markup? Go here to check it out.

You can also find us on LinkedIn, Facebook, Twitter, and Instagram.

500 Startups is a venture capital firm on a mission to discover and back the world’s most talented entrepreneurs, help them create successful companies at scale, and build thriving global ecosystems. In Southeast Asia, 500 Startups invests through the pioneering 500 Southeast Asia family of funds. The 500 Southeast Asia funds have backed over 240 companies across multiple sectors from internet to consumer to deep technology. It continues to connect founders with capital, expertise and powerful regional and global networks to help them succeed.

This post is intended solely for general informational or educational purposes only. 500 Startups Management Company, L.L.C. and its affiliates (collectively “500 Startups”) makes no representation as to the accuracy or information in this post and while reasonable steps have been taken to ensure that the information herein is accurate and up-to-date, no liability can be accepted for any error or omissions. All third party links in this post have not been independently verified by 500 Startups and the inclusion of such links should not be interpreted as an endorsement or confirmation of the content within. Information about portfolio companies’ markets, competitors, performance, and fundraising has been provided by those companies’ founders and has not been independently verified. Under no circumstances should any content in this post be construed as investment, legal, tax or accounting advice by 500 Startups, or an offer to provide any investment advisory service with regard to securities by 500 Startups. No content or information in this post should be construed as an offer to sell or solicitation of interest to purchase any securities advised by 500 Startups. Prospective investors considering an investment into any 500 Startups fund should not consider or construe this content as fund marketing material. The views expressed herein are as at the date of this post and are subject to change without notice. One or more 500 Startups fund may have a financial interest in one or more of the companies discussed.