This weekly newsletter chronicles top digital themes and trends playing out in SE Asia, especially Indonesia. We will decode policy and regulatory changes affecting digital economy sectors, crunch earnings data of top players, track developments related to gig economy workers and attempt to piece together ecosystem buildouts in some of the fastest-growing, venture-backed plays. You can access the previous editions of the Vantage Point weekly posts here.
Executive Summary
- LinkAja has set sights on an IPO but it must first show profitable growth
- Why Carsome sought fresh funds despite comfortable liquidity
- EMTEK raising its head above the parapet with a Vidio Funding round
- Indonesia is going to be a tall order for TikTok
LinkAja has set sights on an IPO but it must first show profitable growth
LinkAja, Indonesia’s fifth-largest digital wallet by monthly active users, is looking to raise fresh funding and eventually become a publicly-listed company.
While it would not be surprising to see the company raise more capital, given its backing from Grab, GoTo, and various state-owned enterprises (SOEs), a local initial public offering (IPO) is unlikely to be successful unless it establishes some track record of profitable growth.
LinkAja, which started operations in June 2019 through the integration of several SOEs, last raised funds in a $100 million Series B round in late 2020 led by Grab Holdings, and participation from telecom major Telkomsel, Mandiri Capital, and BRI Ventures. In March 2021, Gojek, which is now part of GoTo, also invested as part of the same round.
The fact that both Grab and Gojek, despite being arch-rivals in the ride-hailing space, are investors in LinkAja says something about the strategic nature of backing the state-owned digital wallet.
