Indonesian e-commerce unicorn PT Tokopedia has bagged investments from US internet giant Google and Singapore state investor Temasek, its CEO and co-founder William Tanuwijaya confirmed on social media networks on Monday.
The developments were previously reported by DealStreetAsia in June and October.
“We are pleased to welcome Temasek and Google as the shareholders in Tokopedia. We are honored and grateful for their trust and support to the company and Indonesia,” Tanuwijaya said in a statement. “We look forward to working closely with them to continuously build an enduring company, support our mission to democratize commerce through technology, and to further digital transformation in Indonesia.”
He did not disclose the financial terms of the transaction. Nikkei Asia in its report, quoting documents filed with Indonesia’s Ministry of Law and Human Rights, had earlier stated that Google now holds as much as a 1.6 per cent stake in Tokopedia, while Temasek-affiliated Anderson Investments owns another 3.3 per cent.
The funding comes at a time when Tokopedia has witnessed a significant boost in business amidst the COVID-led fog of uncertainty, said Tanuwijaya. The corpus raised is expected to help the company expand its operations in the burgeoning e-commerce marketplace that is witnessing growing competition, with regional rivals such as Sea Group’s Shopee foraying into the country.
“The changes we’ve experienced have accelerated digital transformation in every sector. Digitalization and technology are no longer seen as just value-added but have quickly evolved to become a necessity. In the past 11 years, Tokopedia has never seen a period of digital transformation as fast and as important as today, and we have made every effort to be prepared for this moment,” Tanuwijaya added in the statement.
According to earlier media reports, Tokopedia has also held fundraising talks with other US internet giants including Facebook, Microsoft, and Amazon.
The funding by Google signals US strategic investors’ growing interest in Indonesian unicorns as they gear up to grab a slice of the largest economy in Southeast Asia at a time when markets in the US and Europe are witnessing a slowdown.
Earlier this month, e-commerce unicorn Bukalapak secured a strategic investment from tech giant Microsoft. This partnership heralded collaboration between the two companies on an array of technology projects, its CEO Rachmat Kaimuddin said.
During the peak of the pandemic, in June, Facebook and PayPal had made an investment in ride-hailing decacorn Gojek as part of the Indonesian firm’s ongoing Series F round, which took its total fundraise to over $3 billion to date.
Tokopedia’s growth in Indonesia has, so far, been fuelled by the backing of several well-heeled investors including Alibaba, Sequoia Capital India and SoftBank Vision Fund, which led its last $1.1 billion round in December 2018, valuing the company at $7 billion.
Separately, Tokopedia-affiliated companies now control 41.1 per cent of shares in the parent company of Indonesian digital payments services provider OVO, according to a DealStreetAsia analysis of shareholding documents.