GoTo Group, one of the largest digital ecosystem in Indonesia, has secured more than US$1.3 billion in the first close of its pre-IPO funding round.
Investors include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Avanda Investment Management, Fidelity International, Google, Permodalan Nasional Berhad (PNB), Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry.
The ADIA subsidiary is the lead investor in the round, and it has injected US$400 million into the firm. GoTo expects more investors to join the pre-IPO round ahead of the final close in the coming weeks.
In August, Reuters reported citing sources that GoTo was set to close an up to US$2 billion pre-IPO funding round in a few weeks. Various reports suggested GoTo plans to list in Indonesia by the end of 2021 before proceeding with a US listing with a potential valuation of US$40 billion.
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The company will invest the money in customer growth and engagement, to expand its payments and financial services offering, and leverage its integrated transport fleet and logistics network to enhance hyperlocal experiences.
Andre Soelistyo, CEO of GoTo Group, said: “Consumer demand is being unlocked by growth in digital adoption that has brought many new users online. As a result, demand for our services continues to increase, underscored by our commitment to continuously deliver selection, value and convenience to users across the ecosystem.”
Michael Woo, Singapore-based MD of Primavera Capital Group, commented: “We foresee secular growth opportunities for Indonesia and GoTo across e-commerce, on-demand mobility and fintech – all segments in which Primavera has extensive investment experience.”
Indonesia has a GDP of more than US$1 trillion and is the fourth most populous country in the world, with a young, tech-savvy population of 270 million. GoTo’s ecosystem encompasses nearly two-thirds of Indonesian consumer expenditure, and its total addressable market is set to grow to over $600 billion in Indonesia by 2025.
The country also has almost 140 million people with little or no access to the country’s formal financial system, presenting a significant growth opportunity for the company in payments and financial services.
Also Read: Abu Dhabi wealth fund to inject US$400M into GoTo’s pre-IPO round
GoTo was formed through the merger of Gojek and Tokopedia in May. It is the largest digital ecosystem in Indonesia, whose services span on-demand transport, e-commerce, food and grocery delivery, logistics and fulfilment, and financial services.
The Group claims it generated over 1.8 billion transactions in 2020, with a total group gross transaction value of over US$22 billion and contributed to more than 2 per cent of Indonesia’s GDP.
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Image Credit: GoTo
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