Microsoft Corp. has agreed to join a $100 million investment in Indonesian online marketplace PT Bukalapak.com, according to people familiar with the matter.
The investment may be announced as soon as today, said the people, asking not to be named as the details aren’t public yet. Microsoft and existing backers GIC Pte and PT Elang Mahkota Teknologi, better known as Emtek Group, are investing at a valuation of between $2.5 billion and $3 billion, they said.
The deal takes Bukalapak closer to its target of raising $200 million to bankroll an online expansion, one of the people said. The company is in discussions with other potential investors to secure additional capital, the people said. Representatives for Microsoft weren’t immediately available for comment. A Bukalapak representative declined to comment.
U.S. tech giants are increasingly turning their attention to Indonesia, seeking to tap a rapidly growing smartphone population in the world’s fourth most-populous country. Google has agreed to invest $350 million in e-commerce platform PT Tokopedia together with Temasek Holdings Pte, Bloomberg News reported last month. Facebook Inc. and PayPal Holdings Inc. have also injected an undisclosed amount of money into Indonesian ride-hailing giant Gojek.
Bukalapak’s other existing backers include Jack Ma’s Ant Group Co.