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Google, Fidelity, & Tencent among the investors in GoTo’s $1.3 B pre-IPO round

In the first close of its pre-IPO investment deal, GoTo Group, one of Indonesia’s major digital ecosystems, raised more than US $1.3 billion.

The Abu Dhabi Investment Authority’s (ADIA) wholly-owned company, Avanda Investment Management, Fidelity International, Google, Permodalan Nasional Berhad (PNB), Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry are among the investors.

The ADIA subsidiary is the round’s principal investor, putting US$400 million into the company. More investors are expected to join the pre-IPO round in the following weeks, according to GoTo.

According to Reuters, GoTo was scheduled to finalise a $2 billion pre-IPO investment deal in the next weeks, citing sources. According to many sources, GoTo intends to list in Indonesia by the end of 2021 before moving on with a US offering that might be worth $40 billion.

The funds will be used to expand the company’s payments and financial services offerings, as well as to enhance hyperlocal experiences by using its integrated transport fleet and logistics network.

Andre Soelistyo, CEO of GoTo Group, said: “Consumer demand is being unlocked by growth in digital adoption that has brought many new users online. As a result, demand for our services continues to increase, underscored by our commitment to continuously deliver selection, value, and convenience to users across the ecosystem.”

Michael Woo, Singapore-based MD of Primavera Capital Group, commented: “We foresee secular growth opportunities for Indonesia and GoTo across e-commerce, on-demand mobility, and fintech – all segments in which Primavera has extensive investment experience.”

Indonesia is the world’s fourth most populous country, with a young, tech-savvy population of 270 million people and a GDP of more than US$1 trillion. GoTo’s ecosystem accounts for roughly two-thirds of all consumer spending in Indonesia, and the company’s total addressable market is expected to reach $600 billion by 2025.

There are about 140 million individuals in the country who have limited or no access to the official financial system, which presents a substantial development opportunity for the organization in payments and financial services.

In May, GoTo was founded by the merging of Gojek and Tokopedia. It is Indonesia’s most comprehensive digital ecosystem, with services ranging from on-demand transportation to e-commerce, food and grocery delivery, logistics and fulfillment, and financial services.

In 2020, the Group claims to have created over 1.8 billion transactions with a total gross transaction value of over US $22 billion, contributing more than 2% of Indonesia’s GDP.




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