Satya Nadella, CEO, Microsoft. Photo credit: World Economic Forum, licensed under CC BY-NC-SA 2.0

Software giant Microsoft has made an investment in Indonesian e-commerce company Bukalapak as part of a strategic partnership between both companies that’ll see Bukalapak adopt Microsoft’s Azure cloud platform as its preferred cloud platform. The size of the company’s investment isn’t disclosed but for a hint, Bloomberg reports Microsoft chipped into a $100 million round that’ll value Bukalapak at between $2.5 billion and $3 billion.

Thanks to the newly formed partnership between both companies, Bukalapak will adopt Microsoft Azure as its preferred cloud service to support its 12 million online and offline merchants as well as 100 million customers. Such a deal represents significant business for Microsoft, whose Azure cloud platform is known to be the second-largest globally, only beaten by Amazon Web Services (AWS).

Before now, Bukalapak is known to have raised tens of millions of dollars in funding from investors including 500 Startups, GIC, Emtek Group, and Chinese fintech giant Ant Group. The company’s last-known funding round came in October last year and placed its valuation at $2.5 billion. 

Bukalapak is one of Indonesia’s biggest e-commerce companies. It’s majorly an online marketplace for buyers to connect with both online and offline sellers but has other complementary businesses such as bill payments and digital lending. 

According to Bloomberg, Bukalapak is targeting to raise $200 million in new funding. Microsoft’s investment in the company comes just on the heels of another Indonesian e-commerce firm, Tokopedia, securing $350 million in funding from US tech giant Google and Singapore’s Temasek Holdings.

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