Alibaba Group Holding is tipped to make a big investment into PT Tokopedia, one of Indonesia’s largest online marketplaces. This was according to a report by Bloomberg, which said that Alibaba is current looking to lead a funding round of nearly US$500 million.
If successful, the company will join the ranks of Sequioia Capital and SoftBank Group who are current investors. Marketing has reached out to Alibaba and Tokopedia for comment.
The move follows Alibaba Cloud’s plans to establish an international cloud data centre in Jakarta, which were announced in June this year. It currently anticipates opening the two new centres during the current fiscal year, ending on 31 March 2018. It also responds to Indonesia’s “1,000 Start-ups Movement” initiative launched last year.
It also follows Alibaba’s recent investments into Southeast Asia. In June, it invested an additional US$1 billion in Southeast Asian e-commerce company Lazada Group, increasing its stake in the company from 51% to approximately 83%. This was following its acquisition of Rocket Internet’s 9.1% stake in Lazada for US$137million in 2016, making it the controlling shareholder of the Southeast Asian online retailer.
Meanwhile in Malaysia, Alibaba was tipped to be setting up a regional distribution hub in Malaysia. This is according to sources close to Reuters. The distribution hub which would be located KLIA Aeropolis is expected to generate more than US$1.58 billion worth of domestic and foreign investments.