Jakarta. Kioson Komersial Indonesia, an e-commerce firm, announced on Thursday (12/10) that it has completed the acquisition of online voucher provider firm Narindo Solusi Komunikasi for an undisclosed amount as part of the company's effort to strengthen and diversify its line of business.
Kioson took over a 99 percent stake in Narindo after raising Rp 45 billion ($3.3 million) in an an initial public offering (IPO) at the Indonesia Stock Exchange (IDX) on Sept. 7, becoming the country's first ever e-commerce platform to go public.
"This acquisition plays a strategic role to reinforce our services and facilities in Indonesia through Narindo's existing assets," Kioson Komersial Indonesia president director Jasin Halim said in the statement.
Kioson operates an "online to offline" business that allows customers to make online purchases and later pick up their orders at offline stores or small-to-medium kiosks across the archipelago, especially in second-tier cities. As of September, the company has over 19,000 kiosk partners in Indonesia.
The company offers digital products, including vouchers for e-commerce marketplaces, games and phone credits targeting un-banked customers. Kioson has a similar business concept to Kudo, an online-to-offline e-commerce and marketplace, that was previously acquired by Singapore-based ride-hailing app Grab in early April.
Jasin said the acquisition will further strengthen Kioson's bottom line, and its target revenue will increase by 1,900 percent year-on-year to Rp 500 billion by the end of 2017. For Narindo, the acquisition will help in distributing the company's products through various digital services that Kioson currently operates.
"Kioson is always working to build confidence that digital services can help people improve their welfare and facilitate people in fulfilling their daily needs. A good service will help us to improve the digital inclusion in second tier-cities in Indonesia," Jasin said.
In the IPO last month, Kioson sold 150 million shares, equivalent to 23.1 percent of the company's total equity, at Rp 300 apiece. The company, which traded under the stock code KIOS, closed at Rp 1,360 per share on Thursday.