Behind Mitra Bukalapak's Success in Harnessing the Power of Indonesia's Micro Businesses
Mitra Bukalapak, an online-to-offline (o2o) player and a subsidiary of Indonesian tech company Bukalapak ("IDX:BUKA") is a platform that offers end-to-end solutions for mom-and-pop stores (warungs).
The company has disrupted the business model of warungs, which are often constrained by limited product offerings and lack of resources required to scale up. After utilizing the Mitra Bukalapak app, warung owners have enjoyed a significant increase of up to 3 times in income.
Mitra Bukalapak significantly boosted the overall revenue of BUKA and in Q1 2023, Mitra Bukalapak accounted for 46% of Bukalapak's Total Processing Value (TPV). This upward trajectory is accompanied by the increase in numbers of registered small businesses in Mitra Bukalapak, from 13.1 million at the end of March 2022 to 16.8 million at the end of March 2023.
A study conducted by Nielsen in November 2022 reported Mitra Bukalapak has accomplished a 57% penetration rate among mom-and-pop stores using o2o platforms, making it the leader in the o2o market.
The growth was driven by an improvement in the product mix and a greater variety of service offerings to the Mitras. They can sell over 42 types of virtual products and financial services, from phone credit top-ups and money transfers to game vouchers and train tickets. This offering does not only help warungs gain capabilities of modern retailers, but also empowers them to act as financial inclusion agents in their communities.
Going beyond helping warung owners attain financial success, Mitra Bukalapak also instills a growth mindset that inspires them to continuously think ahead as entrepreneurs.
"Our approach goes beyond providing technology and one-time promotional programs for Mitras. We created regular educational sessions that cultivate a growth mindset and entrepreneurial spirit among our Mitra community members. The community boasts 130,000 members from across the country. These members get to join our gathering events where they can meet fellow warung owners, build their own network, and learn from each other. We strongly believe that peer learning would be the most effective way for these micro business players to get inspired and achieve success," said Howard Gani, CEO of Mitra Bukalapak.
Following the success of creating impacts on warungs, Mitra Bukalapak seeks to extend the solutions to other verticals that share similar pain points with warungs.