Do first, talk later
MatahariMall’s potential strengths are evident. Where other startups begin from scratch, it has access to building blocks the size of department stores. Despite that, MatahariMall’s site content has grown little in the four months since it went live. In the fast paced world of ecommerce, four months is a long time. This seems to indicate the company and its top bosses are still figuring out how to fit the blocks to run a functioning entity.
With supposedly US$500 million in its coffers, MatahariMall has all the time it needs to experiment. But whether that amount is actually available to MatahariMall has increasingly been questioned.
A recent article on the Jakarta Post gave valuable insight into the company’s possible current financial situation.
“Matahari Department Store (MDS), has raised its indirect ownership in online marketplace mataharimall.com to further broaden its business reach through e-commerce,” the Post reported. It went on:
MDS said that it had recently acquired 4.4 million shares in PT Global Ecommerce Indonesia (GEI) worth about Rp 53 billion (US$4.2 million) in a transaction that raised its stake in GEI to 5 percent from 1.99 percent.
Based on the information that MDS paid US$4.2 million for a stake of about 3 percent in GEI, we can deduce that MatahariMall’s maximum valuation is at about US$140 million.
That’s not much for a company that entered with such lofty ambitions. Before MatahariMall’s official launch, Lippo Group said it aimed for US$25 billion in revenue after five years with its new ecommerce venture.
If the Jakarta Post article is correct, the US$140 million valuation is also at odds with Lippo’s claim to have already invested US$500 million into MatahariMall. A company valuation higher than already secured investments is unlikely.
When asked about the stalled growth numbers and MatahariMall’s funding situation, Yiping said her role wouldn’t let her comment on this topic. She recommended Tech in Asia reach out John Riady, director of the Lippo Group, for clarifications on this subject. We’ll update the story once we have a response.
As for the Yiping and the current team, Lippo Group’s name and legacy must be a blessing and a curse. What did she think of the big announcement and the ambitious goals set by Lippo Group for its fledgling venture? Yiping laughs and says: “We do first and talk later.”