Heaptalk, Jakarta — Djarum-backed e-commerce company PT Global Niaga Tbk (Blibli) announced the strategic acquisition of PT Dekoruma Innovation Lestari (Dekoruma).
According to information openness on the Indonesian Stock Exchange, the company takes 26,167 series C shares, representing around 99.83% of all shares issued and fully paid by Dekoruma. The total transaction value is US$70.8 million (around Rp. 1.16 trillion).
By carrying out this transaction, the company has a more significant opportunity to understand the potential and obligations that may arise. Blibli also has the opportunity to carry out more effective risk management and make more informed decisions in these transactions, compared to carrying out these transactions with other third parties that are not affiliated with the company.
For this reason, this transaction is expected to produce strong synergies between the two entities by combining Blibli’s expertise in the e-commerce sector with Dekoruma’s experience in the furniture and home decoration sector.
“The process of unifying the same vision and mission views between Dekoruma can be carried out actively, and it is hoped that it can encourage better optimization of business synergies. After completion of the transaction, the company plans to develop online and offline trade channels..” Blibli’s management team affirmed.
By considering this plan, the company, as the owner of Dekoruma, will work together to expand the reach of the home and living product category, which is an inseparable part of the company’s business integrity.
Prior to performing this strategic effort, Blibli’s consolidated net income increased by 2%, reaching Rp3,923 billion in Q1 2024, compared to previously Rp3,830 billion in Q1 2023. This outcome was driven by Blibli’s robust online travel agent (OTA) business performance during Ramadan and firm performance in the Institutional and Physical Store segments, partially offset by optimizing the cross-category product mix in the Rite 1P segment.
With the growth in net income and rationalization of the TPV mix, the company recorded a much better consolidated gross margin, from 15.1% in 1Q23 to 18.9% in 1Q24, an increase of 390 bps YoY. The Gross Margin enhancement was supported by an increase in consolidated Gross Profit, specifically an increase in OTA business during the Ramadhan period, strong consumer electronics product sales performance in the Institutional segment, and an increase in smartphone sales volume in the Company’s consumer electronics stores.
Meanwhile, Dekoruma has possessed over 1 million customers, providing over 100,000 furniture and decoration products, more than 3,000 interior design projects have been created by more than 100 selected partner interior designers, around 2,000 interior designers who utilize Dekoruma Design Tools – SOMA and 100 property developer partners and banks who work together. The startup also contained experience centers in several cities, including Jakarta, Bandung, Depok, Tangerang, Bekasi, South Tangerang, Semarang, Makassar, and Medan.
