eCommerce platform Blibli buys majority stake in supermarket firm Supra Boga Lestari

Indonesian eCommerce platform Blibli, a subsidiary of Djarum Group, has signed an agreement to acquire a majority stake in publicly listed supermarket operator Supra Boga Lestari (SBL) as it pursues a back-door listing.

Blibli said in a statement that it will buy around IDR797.88 million shares from existing shareholders. While it did not disclose the deal value, the shares represent at least 51% of the total issued and paid-up capital of SBL, according to Nikkei Asia. According to Nikkei Asia, the shares were purchased from previous shareholders Wijaya Summer Sejahtera, Prima Rasa Into, Gunaprima Karyaperkasa, Ekaputri Mandiri, David Kusumodjojo, Suharno Kusumodjojo and Harman Siswanto.

SBL currently runs its grocery store chain under the premium brands, 99 Ranch Market and Farmers Market, and operates at 53 locations across Indonesia. It also runs an online grocery called Get My Stores, which only contributes to less than 1% of the company's total revenue, reported Nikkei Asia. 

“As a commitment to accelerated business and ecosystem development, we have signed a binding share purchase agreement with Supra Boga Lestari,” said Kusumo Martanto, CEO and co-founder of Blibli, according to The Jakarta Post. MARKETING-INTERACTIVE has reached out to Blibli for comment.

In the first half of 2021, SBL's net revenue declined 7.5% to IDR1.48 trillion and its net profit saw a 67% drop, from IDR52.6 billion to IDR17.3 billion. SBL also lowered its 2021 profit target to IDR40 billion, forecasting weak market growth amid low purchasing power, according to Nikkei Asia. Meanwhile, Forrester said in a study that the demand for online grocery services rose amidst the pandemic. Its report titled The 2021 Online Retail Forecast, Asia Pacific revealed that grocery shopping online is predicted to be the fastest-growing category (26%) in 2021, and will reach US$473 billion by 2025. 

Separately, Blibli entered into the retail scene in 2020 with its first retail store for BlibliMart, the company's grocery brand. The store provides cashless services by allowing users to pay using Blipay on the Blibli.com app or Gojek's GoPay. However, consumers are still required to check out with an employee to prevent theft. According to The Jakarta Post, the shopping experience was inspired by Amazon Go in the US, which offers cashless and cashier-less services at its retail stores.

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