Bukalapak & Salim Group will participate in Allo Bank’s $336 M rights offering
Bukalapak and the Salim Group, a local business, aim to invest 4.8 trillion rupiahs (US $335.55 million) in Allo Bank, an Indonesian digital lender.
The investment would be made through a planned purchase of Allo Bank’s pre-emptive rights, according to a statement. Existing investor Mega Corpora will transfer US $83.56 million of its pre-emptive rights to Bukalapak as part of the rights issue (which will take place from January 13 to January 19). The e-commerce giant will become Allo Bank’s second-largest stakeholder as a result of this agreement.
The rights issue will also include local giant CT Corp, Grab, Singapore’s automobile marketplace Carro, and Growtheum Capital.
The funds will be used by Allo Bank to provide lending availability to Indonesia’s small and medium businesses (SMEs).
Allo Bank, which was founded 30 years ago and is managed by local entrepreneur Chairul Tanjung, provides personal and business banking services, as well as features such as Pay Later, Instacash, e-wallet, and remittance.
It received a digital banking license from the Financial Services Authority (OJK) last year, putting it in direct rivalry with Bank Central Asia and Bank Rakyat Indonesia’s digital operations.
Time deposit, transfer, top-up, bill payment, payment, account statement, e-wallet, pay later, immediate cash, and Merchant Presented Mode (MPM) QRIS are all covered under the digital bank license.
Allo Bank claims to be the archipelago’s most well-funded digital bank, having raised $417 million in venture capital.
