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PT Tokopedia’s mascot, Toped, is displayed in the reception area of the company’s offices in Jakarta, Indonesia, on Friday, February 19, 2016.
Photographer: Dimas Ardian
Photographer: Dimas Ardian
Google and Temasek Holdings Pte agreed to invest around $ 350 million in PT Tokopedia, people familiar with the matter said, a major cash injection that will fund the post-Covid-19 expansion of Indonesia’s online shopping center.
the The Alphabet Inc. unit and Singapore’s state investment firm could sign an agreement for the financing soon, said the people, who asked not to be identified to discuss the deal before it is formally concluded. Funding falls short of the initial goal of $ 500 million to $ 1 billion that Bloomberg News reported in July, although Tokopedia may still be looking for more investors.
Tokopedia, the online marketplace supported by SoftBank Group Corp., was said to have held talks with US internet giants. Facebook Inc., Microsoft Corp. and Amazon.com Inc. The endorsement of Google and Temasek is a vote of confidence for one of Indonesia’s largest e-commerce operators, which saw an increase in online shopping during the pandemic.
America’s largest internet corporations have increasingly looked to Asia as growth in the US and Europe slows, seeking to take advantage of the region’s growing population of smartphone users. Facebook is buying a stake in India’s Jio platforms, while its WhatsApp unit agreement to invest in Gojek, which has a popular digital payment service called GoPay. Representatives for Google, Tokopedia and Temasek declined to comment.
Tokopedia Co-Founder and CEO William Tanuwijaya created Indonesia’s Most Valuable Startup after Gojek by gaining early endorsement from SoftBank founder Masayoshi Son and Alibaba Group Holding Ltd. co-founder Jack Ma.
E-commerce platforms like Tokopedia, Alibaba’s Lazada Group SA and Singapore-based Shopee, a unit of Sea Ltd. – moved quickly to serve the millions of people who were forced to make their first purchases online during the widespread lockdowns. Indonesia has become a key battleground between regional rivals – the country’s e-commerce market is projected to expand from $ 21 billion in 2019 to $ 82 billion by 2025, according to a recent study by Google, Temasek and Bain & Co.
Rise in Southeast Asia
Indonesia is the largest contributor to the growth of the Internet economy in the region.
Source: Google and Temasek / Bain, e-Conomy SEA 2019
