GoTo Closes Phase One Pre-IPO Fund, Collects Investment of 18,5 Trillion Rupiah

The GoTo Group announced the closing of its first pre-IPO fundraising of over $1,3 billion (over 18,5 trillion Rupiah) from various investors, including from its wholly-owned subsidiary Abu Dhabi Investments (ADIA), Avanda Investment Management, Fidelity International. Then, Google, Permodalan Nasional Berhad (PNB), Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry.

Other investors are expected to further join the pre-IPO fundraising round towards the final close in the coming weeks, aka towards the end of this year.

In an official statement, the funds raised will be used to invest further in developing its ecosystem, strengthening its position as a market leader in the region, and serving customers better.

Translated further, GoTo continues its ongoing focus on growing customer numbers, expanding payment services and financial service offerings, as well as encouraging the use of integrated transportation fleets and logistics networks to further enhance the experience. hyperlocal, in order to serve customers better.

“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, as well as our position as a market leader,” said GoTo Group CEO Andre Soelistyo, Thursday (11/11).

Andre continued, consumer demand is driven by the growth of digital adoption which has brought many users into the realm of online. As a result, the demand for GoTo services continues to increase, based on the company's commitment to continue to provide choice, value, and convenience to all customers in the GoTo ecosystem.

Primavera Capital Group Managing Director Michael Woo said, “We see growth opportunities in Indonesia and GoTo in E-commerce, mobility on demand, and fintech i.e. all segments in which Primavera has extensive investment experience. We are excited to partner and grow with GoTo and contribute our expertise and resources to the company.”

Indonesia has a GDP of over $1 trillion and is the fourth most populous country in the world. The GoTo ecosystem is claimed to account for nearly two-thirds of Indonesia's consumer spending, and the total target market value will grow to over $600 billion by 2025. The country also has nearly 140 million people with little or no access to the formal financial system, so there are opportunities significant growth for the company in payment and financial services.

Past combination Gojek and Tokopedia, GoTo services now include transportation on-demand, e-commerce, delivery of food and groceries, logistics and fulfillment, and financial and payment services. The GoTo Group recorded more than 1,8 billion transactions in 2020, with a total Group Gross Transaction Value (“GTV”) of more than US$22 billion, and contributed to the economy equivalent to more than 2% of Indonesia's GDP.

Ahead of IPO

The GoTo Group has not officially announced when to immediately go to the stock exchange. In various rumors circulating, it is alleged that it will be carried out in early 2022 with the following process: go public started on the local exchange, followed by New York.

The success of Bukalapak's IPO on the IDX has become a benchmark for many local technology companies who want to follow in his footsteps. By releasing the share price at IDR 850 per share, Bukalapak was able to reap IDR 21,9 trillion. This figure is the largest in the history of the Indonesian capital market, as well as the first listing of shares by a technology unicorn on the stock exchange in Southeast Asia. It is very likely that if GoTo can get a floor on the IDX, it will become the next record maker.

closest competitor Gojek, Grab itself chose to floor through the SPAC scheme at the end of this year. This plan was delayed from the initial target of completion in the middle of this year, due to a request for a financial audit from the local stock exchange authority. Grab targeting a valuation of nearly $40 million before the floor.