Tokopedia is reportedly in the final stages of closing an investment round valued at around US$1.5 billion - Photo by the Company

JAKARTA (TheInsiderStories) – Indonesian e-commerce player PT Tokopedia is reportedly in the final stages of closing an investment round valued at around US$1.5 billion from Japan’ Softbank, China’ Alibaba Group and Singapore-based Temasek.

The Tokopedia marketplace, which is notably the largest of its kind in Indonesia, is now on track to become one of the biggest unicorns in the country following its funding round, right behind Gojek, the first Indonesia-headquartered firm to reach a valuation of roughly $10 billion.

This development came just a few days after Tokopedia’s president Patrick Cao told Nikkei Asian Review last week that the firm is planning to list in its home Indonesian market and also in the United States (US) during the next three years.

“If you want to go for the international investor profile, plus technology expertise and depth in terms of capital then the US is the ideal market for that, considering our peer group as well – Alibaba, Amazon – those guys are all listed in the US,” Cao noted.

Temasek, a major stakeholder in Gojek, will reportedly be leading Tokopedia’s $1.5 billion funding round with a $500 million investment. Existing investors Softbank and Alibaba are also expected to invest substantial amounts.

The round could be finalized “as soon as next quarter” of this year. The $1.5 billion capital injection would value Tokopedia at anywhere between $8 billion and $9 billion, according to sources familiar with the matter. The firm was valued at $7 billion in 2018.

Nuraini Razak, VP of corporate communications at Tokopedia, said that big tech had “already mapped out, planned, and prepared the appropriate arrangements needed” for the firm’s IPO. However, Razak did not say whether the US would be its next market for listings.

Tech giant Amazon is also expected to enter Indonesia’s e-commerce industry. It now appears that firms are beginning to feel the pressure to raise funds, consolidate and strengthen their presence in the country.

Founded in 2009, Tokopedia is an online marketplace that allows individuals and business owners in Indonesia to open and maintain their stores for free. It became the fourth unicorn in Indonesia in 2018. It previously raised $1.1 billion in a funding round led by SoftBank Vision Fund and Alibaba Group, pushing its valuation to around $7 billion.

It was reported in October last year that Tokopedia was considering to list at home and in another market. The company is looking to do the dual listing because it wants its consumers and sellers to also become shareholders, said Tokopedia CEO William Tanuwijaya.

The startup is also reportedly aiming to raise up to $1.5 billion in final private funding round before it goes public. US-based internet companies, as well as existing investors, are looking to participate in the round.

Since Indonesia’s stock exchange is much smaller and less liquid than its global peers, it is reasonable for successful Indonesian startups to have a dual listing. Apart from Tokopedia, other Indonesian unicorns such as ride-hailing giant Gojek and online travel aggregator Traveloka are also considering dual listing.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com