GoTo Successfully Raises USD 1.3 Billion Investment in Pre-IPO

The GoTo Group has just announced the first closing of its pre-IPO fundraising. In this first closing, the company revealed that it had managed to raise more than USD 1.3 billion from investors.

The investors in this fundraising are subsidiaries of Abu Dhabi Investment Authority (ADIA), Fidelity International, Avanda Investment Management, Permodalan NasionalBerhad (PNB), Google, Primavera Capital Group, Temasek, SeaTown Master Fund, and Ward Ferry and Tencent.

The funds raised will allow GoTo to invest further in developing its ecosystem, while strengthening its position as a market leader in the region and serving customers better.

In addition, this investment will be part of the ongoing focus of the combined company Gojek and Tokopedia to grow the number of customers, expand payment services, and offer financial services.

This investment will also encourage the utilization of an integrated transportation fleet and logistics network. Indonesia and Southeast Asia are the two markets with the most promising growth prospects in the world.

“The support we have received demonstrates the confidence that investors have in the rapidly growing digital economy in the region and our position as a market leader,” said CEO of the GoTo Group, Andre Soelistyo, in an official statement received on Thursday (11/11/2021).

Regarding this investment, Managing Director of Singapore-based Primavera Capital Group, Michael Woo, said he saw growth opportunities in Indonesia, including GoTo in e-commerce, on-demand mobility, and fintech. Therefore, they are happy to partner with GoTo, as well as to contribute to the company.

Previously, GoTo Group had indeed signed an agreement with a subsidiary of the Abu Dhabi Investment Authority (ADIA). Under this agreement, ADIA will lead GoTo’s pre-IPO fundraising with an investment of USD 400 million or around IDR 5.7 trillion.

This transaction is the first investment made by ADIA’s Private Equities Department in a Southeast Asian technology company, including the largest investment made in Indonesia.

Abu Dhabi Injects GoTo IDR 5.7 Trillion

ADIA will be the new investor in the current list of global investors. “We are proud to welcome ADIA as the newest investor in the company and the first in our pre-IPO fundraising, as we prepare the business for exponential growth in the years to come,” said GoTo Group CEO, Andre Soelistyo in an official statement received, Wednesday ( 20/10/2021).

Furthermore, Andre said that this large scale of support confirms GoTo’s belief that Indonesia and Southeast Asia will be the next big destinations for technology investment.

“We have always believed that success will come as long as we remain committed to our mission of empowering progress, with a focus on improving living standards and helping to build livelihoods in the countries where we operate,” said Andre.

Meanwhile, Executive Director of ADIA’s Private Equities Department, Hamad Shahwan Al Dhaheri said, ADIA’s investment in GoTo is in line with the company’s main investment themes. Moreover, according to him, ADIA sees strong potential in the Southeast Asia region, especially in Indonesia.

Gojek and Tokopedia Officially Form GoTo Group

To note, Gojek and Tokopedia finally officially announced the formation of the GoTo Group. The formation of the GoTo Group is called the largest business collaboration in Indonesia, as well as the largest collaboration between two internet and media service companies in Asia to date. GoTo combines e-commerce services, delivery of goods and food, transportation, to finance.

Andre Soelistyo from Gojek will lead GoTo as Group CEO, while Patrick Cao from Tokopedia will be GoTo President. Kevin Aluwi will continue to serve as Gojek’s CEO. Likewise with William Tanuwijaya who is now the CEO of Tokopedia.

In addition to responsibilities at the group level, Andre will also lead a payment and financial services business called GoTo Financial. It includes GoPay as well as financial services and business solutions for business partners.