IDX-listed super app PT GoTo Gojek Tokopedia Tbk (GoTo) has acquired an 11.4% stake in the local multifinance firm PT Multifinance Anak Bangsa (MAB) for 32.45 billion rupiah ($2 million).
GoTo acquired the stake from Winato Kartono, a commissioner of the tech firm, via PT Mapan Global Tech (MGT), according to a disclosure on the IDX on Thursday.
MAB operates the lending business of GoTo under the brand GoPay Later. It provides three types of lending—investment financing, working capital financing, and multi purpose financing
Before the recent transaction, Gofin Karya Anak Bangsa (GKAB), a subsidiary of GoTo, held the majority stake in MAB at 85%, Kartono owned 11.4%, and the rest was held by PT Sucor Capital. Following the transaction, GoTo has increased its stake in the firm to 96.4%.
MAB, originally known as PT Rama Multi Finance and founded in 1953, was acquired by GoTo in November 2021. The acquisition of the additional stake in MAB is part of GoTo’s plan to increase its exposure to lending.
In an earnings call following its 2023 fourth quarter results this year, Patrick Walujo, the CEO of GoTo said that the firm plans to expand its loan book, grow its buy now pay later (BNPL) programme, and cash loan offerings.
To grow the loan book, GoTo is launching a BNPL feature with TikTok and working with BFI Finance on vehicle financing for drivers, added Thomas Husted, vice president director and president of financial technology at GoTo in the same earnings call.
GoTo clocked a positive adjusted EBITDA for the three months ended Dec 31, 2023, at 77 billion rupiah, compared with a negative adjusted EBITDA of 3.1 trillion rupiah in Q4 2022.
Achieving positive adjusted EBITDA in Q4 2023 means the company can rely on its cash flow and may not require large fundraising, according to Jeffrey Bahar, chief operating officer at Yamada Consulting & Spire. “The upcoming fundraising could be aimed for strategic investment, not solely to fund the company’s business operations,” he told DealStreetAsia last month.
