ADIA, Temasek said to invest in Indonesian tech giant GoTo’s pre-IPO round

Indonesia’s largest tech group GoTo is set to complete a $1.5-2 billion pre-IPO round, sources privy to the development told DealStreetAsia.

The round is likely to be led by Abu Dhabi Investment Authority (ADIA), while Singapore state investment firm Temasek Holdings, an existing backer, is set to top up in the round.

The transaction is expected to be completed this month, the sources added.

When contacted, a spokesperson at Temasek said the company “does not comment on market speculation and rumours”. Meanwhile, separate queries sent to ADIA and GoTo did not elicit any response at the time of publishing the story.

GoTo, formed through the merger of e-commerce leader Tokopedia and ride-hailing giant Gojek in May 2021, has links to other businesses such as logistics, digital banking, and retail.

In the run-up to its IPO plans, GoTo has conducted several transactions that have helped it increase its valuation and comply with local regulations.

According to the recent filings with Indonesian authorities, GoTo has acquired all shares in its fintech arm GoPay earlier held by overseas entities including Facebook Holdings, Google Asia Pacific, PayPal Inc, Tencent Mobility Limited, and Gamvest Pte. Ltd. The acquisition of shares was done through multiple transactions that were completed on October 4, 2021.

The company’s subsidiary Tokopedia, on the other hand, has fully divested its ownership in OVO to Grab last week to onboard GoPay.

GoTo has a diverse set of more than 100 investors on its cap table which includes Temasek. Even before the merger, Temasek had invested in both Gojek and Tokopedia separately.

The company also counts SoftBank Group, Alibaba, Sequoia Capital, Google, and Singapore wealth fund GIC among its backers.

ADIA, on the other hand, is relatively new to the tech group even as it is otherwise familiar with investments in Indonesia.

The sovereign wealth fund, which allocates between 15% and 25% of its investments in emerging markets, recently formed a $3.75 billion toll road fund with Indonesia’s first sovereign wealth fund INA and other investors including Caisse de dépôt et placement du Québec (CDPQ) and APG Asset Management (APG) in May.

GoTo’s IPO plans

Earlier, GoTo was targeting to make a debut on the bourse in Indonesia by year-end, followed by a US listing. However, regulatory procedures pertaining to the OJK weighing new listing guidelines for tech firms delayed the process.

Now, the company is reportedly looking to make a public market debut early next year.

GoTo’s IPO is widely anticipated following the e-commerce giant Bukalapak’s stellar IDX debut in August, wherein it raised $1.5 billion on its opening day.

Prominent officials and local bourse executives have expressed support for tech companies to conduct IPOs in Indonesia as part of the efforts to boost foreign inflow of capital into the country which help translate into a positive balance of payment.

I Gede Nyoman Yetna, an Indonesia Stock Exchange director, told reporters that the authorities have been conducting one-on-one sessions with tech companies in the country to hear their needs for IPO. The authorities have been revamping regulations to welcome more tech companies, including preparing guidelines for dual classes of shares and mulling how to regulate special purpose acquisition companies (SPACs).

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.