Photo: Mitsui & Co

JAKARTA (TheInsiderStories)—Indonesia’s real estate company Lippo Group invested US$44 million in Chinese giant internet company Tencent Holdings Ltd. through shares and equity-linked notes.

In a statement cited by Reuters, Lippo said the investment would be made through its Hong Kong subsidiary and would contribute to the group’s digitalization efforts. Tencent Holdings, who owns China’s leading social media application, WeChat, is the second most valuable company in Asia. Tencent has been competing with other Chinese tech giants Alibaba.

Tencent booked US$11.693 million in revenue in the first quarter of this year or increased 48 per cent from the first quarter last year. The company also recorded US$3.81 million in profit in the first quarter of this year, up 65 per cent from the similar period last year. The company’s net margin increased to 33 per cent from 29 per cent last year.

Lippo Group engages primary with real estate business, retail, IT and mass media, hospital and finance with Over 400 affiliates in Indonesia and overseas, 20 which are listed.

Lippo is very aggressive in entering the tech startup business in recent years. Lippo has nine sectors that drive digital transformation. In addition, the group has established a digital investment group to lay a strong foundation for the fourth industrial revolution.

One of them is Venturra Capital which has invested in 24 start-up companies over the past two years, most notably the $100 million funding in ride-hailing service Grab.

The company launched Matahari Mall online shop in 2016, but it is unpopular compared to other e-commerce operators. In April 2017, Lippo created Mbiz which specifically targets businesses and government institutions. Mbiz is inviting vendors of a wide range of products to join its platform as suppliers.

Mbiz is operated by PT Brilliant E-Commerce Berjaya, part of the Lippo group. Matahari Mall, however, is operated by PT Global Ecommerce Indonesia, in which Investama Digital Ventura holds a majority stake.

The Chinese-Indonesian conglomerate made a full-scale entry into the e-cash business this summer by launching a smartphone-based service that lets users shop with e-cash and accumulate shopping points. The service, called OVO, is expected to attract 8.5 million users by the end of next year.

OVO issued by PT Visionet International. The company is under the auspices of LippoX which is a digital payment company owned by Lippo Group.