GIC-backed Indonesia unicorn Bukalapak cuts jobs in profitability bid

[JAKARTA] Online market place PT Bukalapak.com is cutting about 10 per cent of its around 2,500 employees, bucking a trend among Indonesian unicorns that have been stepping up hiring this year.

Chief strategy officer Teddy Oetomo said in a statement on Tuesday that the company would be placing greater emphasis on profitability. It's targeting break-even or its first profit within five years.

"We have sufficient capital to achieve positive Ebitda (earnings before interest, tax, depreciation and amortisation) if all the initiatives that we have put in place are going as planned," Mr Oetomo said. "The reason we are targeting for sustainability is because we don't want to continue raising funds and would like to minimize dilution to existing shareholders."

Bukalapak was valued at US$1 billion in November 2017 by CB Insights.

Bukalapak is majority Indonesian-owned and was hoping to remain so, Mr Oetomo said. The company's backers include broadcaster PT Elang Mahkota Teknologi. It also counts Singapore's sovereign wealth fund GIC Pte and China's Ant Financial, the Alibaba affiliate controlled by billionaire Jack Ma, among its investors.

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