Indonesia’s GoTo Valued at $28.5bn on $1.3bn Pre-IPO Funding

Indonesian ‘superapp’ GoTo Group said on Thursday it had secured more than $1.3 billion from investors in pre-initial public offering (IPO) funding.

The investment puts the valuation of the Indonesia app at a minimum of $28.5 billion, analysts say.

The company said it would use the proceeds to strengthen its position, focusing on customer growth and engagement, expanding its payments and financial services offering, and concentrating on “hyper-local” services from its transport and logistics operations.

“Indonesia and Southeast Asia are some of the most exciting growth markets in the world, and the backing we’ve secured shows the confidence that investors have in the region’s rapidly expanding digital economy,” chief executive Andre Soelistyo said.

“Consumer demand is being unlocked by growth in digital adoption that has brought many new users online,” he added.

Investors include a subsidiary of the Abu Dhabi Investment Authority (ADIA), Avanda Investment Management, Fidelity International, Google, Permodalan Nasional, Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent and Ward Ferry.

Investment Underscores Confidence

An ADIA subsidiary is contributing $400 million. The investment underscored confidence in the fast-growing digital economies of Southeast Asia, Hamad Shahwan Al Dhaheri, executive director of ADIA’s private equities department, said in a statement.

Further investors are expected to join in the pre-IPO fundraising round, which comes ahead of a planned public listing by GoTo next year.

“We foresee secular growth opportunities for Indonesia and GoTo across e-commerce, on demand mobility and fintech,” Primavera’s managing director Michael Woo said.

GoTo was formed in May from a merger of Gojek and Tokopedia. Its services span ride-hailing, e-commerce, food and grocery delivery, logistics and financial services.

The group said it generated more than 1.8 billion transactions in 2020 with an aggregate value of $22 billion.

Citi and Goldman Sachs are the group’s financial advisers and Davis Polk & Wardwell and Assegaf Hamzah & Partners act as legal counsel.

George Russell

Bukalapak Shares Soar 25% Amid Frenzy Over Indonesia’s Biggest IPO

Grab to Take Majority Stake in Indonesia E-wallet OVO

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.