Tokopedia to become a Decacorn after Google and Temasek Inject

E-commerce company, Tokopedia confirmed that it has received funding from Google and Temasek. With this additional capital, the unicorn has the opportunity to become a decacorn. However, Tokopedia CEO William Tanuwijaya did not mention the number of fresh funds received.

“We are very pleased to welcome Temasek and Google as Tokopedia shareholders,” he said via his Instagram account, Monday (16/11). He is optimistic that the entry of the two companies will encourage Tokopedia to become a strong and sustainable company.

“This is so that we can continue to accelerate digital transformation and equalize the economy through technology in Indonesia,” he said. Before obtaining fresh funds, Tokopedia’s valuation was said to be US$ 7.5 billion. To become a decacorn, the valuation is at least US$ 10 billion.

This figure does not necessarily reflect the actual capital paid by the two companies. Meanwhile, the investment will take place in several stages, which will allow Google and Temasek to increase their share ownership. Reporting from DealStreetAsia, Temasek has injected Tokopedia’s capital of US$ 500 million or IDR 73 trillion.

Meanwhile, Google and others US$ 300 million or IDR 4.4 trillion. However, a Tech In Asia source said that the investment value was not US$ 800 million. “Absolutely wrong,” he was quoted as saying last October (23/10). However, he did not specify the amount.

Since February, Tokopedia has Aimed for Investors

In February, Tokopedia’s VP of Corporate Communications Nuraini Razak said that Tokopedia is targeting investors who can provide added value, such as Alibaba, SoftBank, and Sequoia Capital.

“It is not only about money, but also best practices. How is the application of technology or business from Alibaba in other places, for example,” she said, at the beginning of the year (19/2).

A technology company from the United States (US), Google, is reportedly injecting fresh funds into Tokopedia. This internet giant is also said to hold a 1.6% stake in e-commerce. In addition, Temasek’s affiliated company, Anderson Investments, reportedly owns a 3.3% stake.

“Tokopedia shares held by Google are IDR 16.7 billion and Anderson IDR 33.4 billion,” he was quoted as saying from the Asia Nikkei Review, last weekend (14/11).

This figure does not necessarily reflect the actual capital paid by the two companies. Meanwhile, the investment will take place in several stages, which will allow Google and Temasek to increase their share ownership.

Technology is What Make Tokopedia’s Business Going Smoothly

Tokopedia currently has four business lines, namely marketplace and payments, fintech, logistics and fulfillment, and Tokopedia partners. The four business lines are run by relying on technology.

Tokopedia Vice Chairman and Co-Founder, Leontinus Alpha Edison, said that Tokopedia realizes that technology can be a catalyst that helps to achieve its mission of realizing digital economic equity throughout Indonesia. You could say technology is the ‘breath’ of Tokopedia itself.

During its 11 years of existence, technology has been one of Tokopedia’s priorities. That’s why he said Tokopedia is now transforming into an Indonesian technology company that continues to transform to a higher level, namely the super ecosystem.

He said when it was first established, Tokopedia had to build trust from users as well as build their habit of shopping through Tokopedia. Over time, user needs are increasingly complex and continue to evolve.

When building Tokopedia in 2009, Leon and William Tanuwijaya were encouraged by the access gaps they encountered in their daily lives. Both of them want the ease of access they get in Jakarta when they leave for their families and friends back home.

Leon also said that from the past until now, Tokopedia has always focused on its mission to realize digital economic equity in Indonesia. Even though currently Tokopedia has reached 98% of sub-districts in Indonesia, there is still a lot of potential that can be maximized to help Indonesians meet their needs and transact between islands.