Daily Management Review

Tokopedia’s Latest Funding Round Secured ‘$1.1 Billion’


12/21/2018


Alibaba and Softbank invest in Indonesian e-commerce Tokopedia with the growing interest in the said market.



Tokopedia is an e-commerce company of Indonesia which has manage to secure “$1.1 billion” during its latest round for funding. At the helm of this initiative was the giant e-commerce of China, Alibaba Group Holding Ltd as well as SoftBank Group Corp of Japan.
 
Similarly, in 2017, Alibaba had led an investment in a similar manner which is gaining speed in Southeast Asia while slowing down growth in the Chinese e-commerce market. According to Tokopedia, the company has plans of using the funds as an investment into “technology and infrastructure”. In addition to that, the firm also informed that it will maintain its focus on the markets of Indonesia for driving “economic development” and promoting “financial inclusion”.
 
The Chief Executive Officer as well as the Co-Founder of the company, William Tanuwijaya stated that the above mentioned investment would be a help to “broaden Tokopedia’s scale and reach” along with increasing “operational efficiency” of the firm.
 
Nevertheless, no confirmed validation has been obtained from Tokopedia after the round, although TechCrunch, a news website, cited “an unnamed source” and informed that the “company was valued at around $7 billion”.
 
Following the recent funding rounds, Alibaba’s share has been growing fast in the e-commerce market of Indonesia, while the Chinese e-commerce giant also owners “a majority” of Lazada, the latter being the biggest market competitor of Tokopedia.
 
JD.com, the “second-largest e-commerce company” of China, and Alibaba the Chinese e-commerce giant are turning Indonesia into a “proxy battleground” with heavy investments being poured in to construct “a logistics network in Indonesia”.
 
Tokopedia was founded in the year of 2009 and at present it occupies the “largest online marketplace” in Indonesia which could be compared to “Alibaba’s Taobao’. In the latest round, there have investments coming from “Softbank’s Vision Fund as well as Softbank Ventures Korea and Sequoia Capital”, while Tokopedia, delivering nearly 93% of the districts in Indonesia reported to have “quadrupled its sales in the past year”.
 
References:
reuters.com







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