IPO is Postponed, Bhinneka Aims for Series C Funding This Year

Bhinneka is preparing Series C funding to support business development in B2B segment. It's to be finalized in the middle of this year.

Hendrik Tio, Bhinneka's CEO and Founder avoid to mention the funds needed in this round. He said the funds will be used to support the whole business growth, especially in the B2B segment, not only the IT.

He considers B2B segment to have better prospect in the future, it means an opportunity for Bhinneka to win this segment.

"We'll keep doing it [external funding]. Hopefully, to make another one this year, [now] on progress. The final, should be in the first semester [this year]," he said, Tuesday (1/8).

In Bhinneka's business plan, they're building an integrated system to connect all of Bhinneka's core business from upstream to downstream. It's a part of company's big plan to put omni channel strategy first.

He gave an example when a consumer cancelled a transaction at Bhinneka for some reasons. Data will be stored in a system to support their transaction in the nearest outlets by adding interesting gimmicks.

"It's why we keep using offline and online strategy, not only one sided, because the multi channel supports our whole strategy. The key is to stay consistent and innovative in developing technology."

The company has also completed the Bhinneka app with better UI / UX to adjust to the target consumers. This app is made for B2C market.

He commented on the same occasion related to Bhinneka's plan for IPO. He said this year was not the right moment to make a corporate action considering the political situation, it had to be postponed for the next two to three years.

In fact, based on company's readiness, he claimed to have met all the requirements by IDX long time ago. The company has tried to register and get approval.

"We actually have passed the trial and ready to go ublic. However, we're waiting for the moment, due to this year's political condition, it's not the right time, maybe two to three years later."

Bhinneka business accomplishment

In 2018, Bhinneka claimed an increased revenue by 40% in the past five years. It's B2G segment contribution with nearly 50% percentage, followed by B2B (30%) and other from B2C (20%).

In terms of online and offline sales, B2C segment only, is quite equal at 10% for each channel.

"This year, it [revenue] should've at least same with last year, at 40%."

In order to support the omni channel strategy, Bhinneka will continue to open new offline outlets, not as massive as others. The plan is to add five more outlets in Bandung, Yogyakarta, and Jakarta.

Bhinneka currently has eight outlets, seven are located in Jakarta, and the rest is in Surabaya. Including 33 representative offices in all provinces in Indonesia to handle B2B and B2G segments.

Bhinneka has partnered with 3 thousand brands, more than 9 thousand supplier vendors, and 40 thousand consumers from B2B and B2G segments.

Since it was founded in 1993, Bhinneka's business started from Digital Printing Solution. In 1995, it expanded to IT product sales, and four years later they entered e-commerce industry with Bhinneka.com site.

In 2001, they try to enter offline business as the company's mission to gain consumer's trust. B2B segment is started to be in demand 10 years later, by releasing Bhinneka Business.

B2G segment was started a year later, and officially operating in 2015 through e-procurement and e-catalog launching. Within the same year, Bhinneka's revenue has reached Rp1 trillion.

– Original article is in Indonesian, translated by Kristin Siagian