GoTo Group bags US$1.3bn in pre-IPO fundraising

GoTo Group has raised more than US$1.3 billion in pre-IPO fundraising which will allow it to invest further in its ecosystem, strengthen its market-leading position in the region and better serve customers. This includes continued focus on customer growth and engagement, expansion of its payments and financial services offering, and leveraging its integrated transport fleet and logistics network to enhance hyperlocal experiences.

The investors include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Avanda Investment Management, Fidelity International, Google, Permodalan Nasional, Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry. Further investors are expected to join the pre-IPO fundraising round ahead of the final close in coming weeks. This news comes a few weeks after it received a US$400 million investment from ADIA"s Private Equities Department in October for its pre-IPO fundraising. 

The Group was formed following a merger between Gojek and Tokopedia in May this year, with the new entity boasting a total group gross transaction value of more than US$22 billion last year and over 1.8 billion transactions. According to the company, its total addressable market is set to grow to over $600 billion in Indonesia by 2025.

Andre Soelistyo, CEO of GoTo Group, said Indonesia and Southeast Asia are some of the most exciting growth markets in the world, and the backing it has secured shows the confidence that investors have in the region’s rapidly expanding digital economy and its market-leading position. "Consumer demand is being unlocked by growth in digital adoption that has brought many new users online. As a result, demand for our services continues to increase, underscored by our commitment to continuously deliver selection, value and convenience to users across the ecosystem," he added.

Meanwhile, rival Grab is also in the midst of going public in the US via a merger with special purpose acquisition company Altimeter Growth Corp. The announcement was made in April and the company raised about US$4.5 billion in cash back then, valuing Grab's shares at US$39.6 billion. According to Grab, this is expected to be the largest-ever US equity offering by a Southeast Asian company.

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Photo courtesy: 123RF

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