Indonesia’s Tokopedia raises $100m from Softbank, Sequoia

Indonesia’s leading e-commerce marketplace, PT Tokopedia, will be receiving $100 million in funding from Japan’s SoftBank Corp and Sequoia Capital. The funding round, led by Softbank, is the largest ever investment received by an Indonesian startup. 

This is also Softbank and Sequoia Capital’s first investment in Indonesia. The deal is expected to close in December.

Both Sequoia and Softbank, which led the round through the bank’s investment arm, SoftBank Internet and Media Inc (SIMI), will get board representation.

Prior to this, the Indonesian online market place that began operations in 2009, had raised funds in several rounds, including investments from PT Indonusa Dwitama (2009), East Ventures (2010), CyberAgent Ventures (2011), BEENOS (2012) and SB Pan Asia Fund last year. Among its existing shareholders, only SB Pan Asia Fund participated in the latest round.

Tokopedia will use the proceeds to focus on customer acquisition, hiring, and other initiatives to further strengthen its position, the company said.  

“With this new round, Tokopedia will have enough resources to form the best team, develop world class technology to help our merchants and bring the best commerce experience to our users. We will always prioritize our users, and focus on making our users more successful. And for us that is the most important part of our business model,” said William Tanuwijaya, CEO of Tokopedia, in a statement.

Former Google executive and Softbank Vice Chairman Nikesh Arora remarked that amongst its Asian peers, Indonesia stands out in the terms of growth potential for online marketplaces. “Tokopedia has seen remarkable growth with its innovative business model,”he observed.

By partnering with Tokopedia, SoftBank aims to further build its presence as a leading Internet company in Asia and “to accelerate business growth by leveraging synergies with other group Internet companies,” his statement added.

Shailendra Singh, Managing Director, Sequoia Capital India Advisors said, “We are incredibly impressed the progress that the company has made in connecting buyers and sellers in a seamless and trustworthy marketplace in Indonesia. We are delighted to partner with the Tokopedia team and investors, and look forward to working with them in building a leading Internet company for the future”.