Matahari Department Stores (MDS) has increased its ownership in Global eCommerce Indonesia (GEI), the parent company of Indonesian eCommerce startup MatahariMall.com.
MDS has paid Rp164.9 billion (US$12.2 million) for 7.3 billion shares, or 3.62 per cent of paid-up capital, in GEI. This gives it a 12 per cent share in total.
MDS last ramped up its stake in GEI in January last year to 10.33 per cent, but its ownership was diluted to 8.38 per cent over the 12 months because of investments by other shareholders. In October, Mitsui & Co announced plans to inject $100 million in GEI over the next 12 months, and MDS has decided to expand its control gradually.
“The company sees large potential in the eCommerce sector. With increased stakes in the platform, Matahari secures opportunities for huge returns in the future. We will also be able to synergise MatahariStore.com into MatahariMall’s platform, which will in turn widen reach across the country as well as boost Matahari’s net profit,” the company says in a statement.
MDS has 148 stores in 68 cities across Indonesia.
Proceeds from the new funding round will be used to improve market share, and to strengthen its position as Indonesia’s “leading eCommerce player”.
MatahariMall warehouses and ships products from about 5000 affiliated sellers, and also procures goods directly to sell independently.