Indonesian retail firm Matahari Department Store (MDS) has increased its stake in e-commerce startup MatahariMall.com.
MDS, a subsidiary of Multipolar which is part of the Lippo Group conglomerate, has closed its second tranche of investment in the startup, taking its share to nearly 16 per cent. So far it has invested US$41.8 million with plans to put in a further $16 million by the end of the year, taking its stake to around 18 per cent.
MDS is betting on MatahariStore.com, part of MatahariMall.com, where it can sell its own brands. Launched last November, the portal had 67,000 transactions in this year’s first quarter and 130,000 transactions in the second quarter.
With 156 stores in 71 cities in Indonesia, MDS says it is focused on targeting quality traffic, which translates into transactions rather than just page visits, reports Deal Street Asia.
In October last, Mitsui & Co and a consortium announced plans to inject $100 million in Global E-commerce Indonesia, the parent company of MatahariMall.com.
Meanwhile, MatahariMall.com management says it has been refining its strategy because of industry dynamics, and has been continuing to focus on customer acquisition.
