Indonesian Largest Tech Company GoTo Group Raises About $1.3 Billion In IPO

GoTo Group, the result of merging ride-hailing-to-payments firm Gojek and e-commerce leader Tokopedia, is considered the largest digital ecosystem in Indonesia.

And this time, it announced the first close of its pre-IPO fundraising, securing more than $1.3 billion from investors including a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Avanda Investment Management, Fidelity International, Google, Permodalan Nasional Berhad (PNB), Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry.

To make this happen, the company said that it is selling up to 52 billion Series A shares and set a price range of 316 to 346 rupiah per share.

The IPO is set to be carried out on the Indonesia Stock Exchange (IDX).

GoTo Group IPO
Kevin Aluwi, GoTo's co-founder and director (left); William Tanuwijaya, GoTo's Co-Founder and Commissioner (center); Andre Soelistyo, GoTo’s CEO (right) announces the company's Initial Public Offering on Indonesia Stock Exchange (IDX) under ticker "GOTO" during a due diligence and public expose event on March 15, 2022. (Credit: GoTo /Public relations)

Andre Soelistyo, GoTo Group CEO said:

"This is a landmark moment in the history of our company as we set out on the final stretch towards becoming a publicly owned company on the Indonesia Stock Exchange. Indonesia is one of the largest and most exciting growth markets in the world, as reflected in the resilience our capital market has shown this year, against a backdrop of global market volatility. We hope that our IPO will show the world the tremendous opportunity that exists in our country and throughout the Southeast Asia region."

"The strength of our business is that we are more than the sum of our parts. Our ecosystem of on-demand, e-commerce and financial technology services connects millions of consumers, driver-partners and merchants, with the mission to empower progress for everyone in the fast-growing digital economy. We are proud that we’ve come from humble origins in Indonesia, earned the trust of millions of consumers, driver-partners, and merchants, partnered with leading global investors and are now taking our next steps in building an iconic, internationally renowned technology company."

"I would like to express our gratitude to the Government of Indonesia for creating an environment that is enabling home-grown tech companies like ours to thrive and for supporting the nation’s digital transformation, which will ultimately benefit everyone."

And as part of the IPO, GoTo Group is launching the 'Gotong Royong Share Program', which will provide the Group’s most active, long-serving and loyal driver-partners, merchants and consumers, as well as employees, with the opportunity to benefit from the IPO.

As Andre explained:

"Our listing will be a great moment for those involved in the success of our ecosystem and for everyone that believes in the ‘Indonesian dream’. That is why it was important for us to provide the driver-partners, merchants, consumers and employees in our ecosystem with the opportunity to benefit from the IPO through this highly inclusive and globally unique share program."

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Indonesia is Southeast Asia's largest economy, with a GDP of more than $1 trillion.

And with a population of over 274 million, the archipelago country is also considered the most populated in the region, and the fourth largest in the world.

Indonesia and Southeast Asia have a young and highly tech-savvy population with growing spending power that is driving the growth of the region’s digital economy.

And GoTo here, is Indonesia's largest tech company.

While the total amount being raised is lower than the $1.5 billion raised by Bukalapak in its August 2021 listing, GoTo’s IPO may boost its valuation to 414 trillion rupiah (around $28.8 billion).

The funds raised are meant to allow GoTo to invest further in its ecosystem, strengthening 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.

GoTo Group
GoTo Group was born from a merger between two of Indonesia's largest tech companies.

This, can make it twice more valuable than Grab, which has a market capitalization of about $11 billion.

Grab's share prices have been plummeting rapidly since November 2021.

"Indonesia and Southeast Asia are some of the most exciting growth markets in the world, and the backing we’ve secured shows the confidence that investors have in the region’s rapidly expanding digital economy and our market-leading position," said Andre.

"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."