The deal increases Matahari Department Stores’ stake in MatahariMall to 16 per cent

MatahariMall, the Indonesian e-commerce company launched by Lippo Group, has raised US$16 million from an offline retailer also under the conglomerate’s umbrella.

According to Dealstreet Asia, who broke the news, the investor was Matahari Department Stores (MDS) and will increase the offline retailer’s stake in the company to 16 per cent.

The deal is part of a larger plan by MDS to invest US$44.2 million into Matahari Mall over a 12-month period.

MDS is a subsidiary company of Multipolar, a major property in the Lippo Group conglomerate.

When approached by e27, Matahari Mall denied to comment.

Also Read: A Singaporean acquisition story you have never heard

According to DealstreetAsia, Matahari Department Stores is reportedly interested in the fashion-focussed portal MatahariStore.com because it can use the platform to sell its own brands.

In October 2016, the e-commerce site raised US$100 million led by Japan’s Mitsui Group — a round that was meant to be deployed over a 12-month period.

In January 2017, MatahariMall Chairman Emirsyah Satar became embroiled in a Rolls Royce bribery scandal that involved his former company Garuda.

Also Read: Indonesian O2O e-commerce startup Kioson to announce IPO

Launched in September of 2015, MatahariMall was launched to become the ‘Alibaba of Indonesia’. It has since found itself competing within a vibrant e-commerce sector that includes Alibaba via Lazada and Tokopedia.

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