Indonesia’s largest private tech company GoTo has bagged USD 400 million from Abu Dhabi Investment Authority, the sovereign wealth fund owned by the Emirate of Abu Dhabi, ahead of its anticipated initial public offering.
GoTo said in a statement on Wednesday that it has agreed for a wholly-owned subsidiary of ADIA to lead its pre-IPO fundraising with the investment. The transaction “will be the first principal investment by ADIA’s Private Equities Department into a technology business in Southeast Asia and its largest investment into Indonesia to date,” GoTo added.
A person with knowledge of the matter said the round in advance of the IPO is aiming to raise around USD 1.5 billion.
GoTo was formed in May after a merger between two of Indonesia’s largest tech companies, superapp provider Gojek and e-commerce platform Tokopedia.
ADIA is joining a list of global investors in GoTo, including China’s Alibaba Group, Japan’s SoftBank Group, Facebook, and local conglomerate Astra International.
“This investment in GoTo is aligned with a number of our key investment themes, including the growth of the digital economy in the fast-growing markets of Southeast Asia,” Hamad Shahwan Al Dhaheri, executive director of ADIA’s Private Equities Department, said in a statement. “We see strong potential in the region, particularly in Indonesia where the vibrant economic backdrop is encouraging ADIA to continue to deepen its presence.”
ADIA’s other commitments to Indonesia include an agreement with Indonesia Investment Authority, manager of the state sovereign wealth fund, for its first investment vehicle, including up to USD 3.75 billion in a subfund focused on Indonesian toll road assets.
Meanwhile, Andre Soelistyo, GoTo’s group CEO, said: “Backing of this scale underlines our belief that Indonesia and Southeast Asia are emerging as the next great destinations for tech investment.”
GoTo was initially looking to list in the Indonesian market by the end of the year, followed by a listing in the US. But its domestic listing has been pushed back to early 2022, as it awaits a regulatory change that will allow companies going public on the Indonesia Stock Exchange to have multiple voting shares, meaning corporate founders can have larger voting rights.
“GoTo wants multiple voting shares … but [the scheme] is still being put on hold by OJK,” a source with knowledge of the matter said. OJK is Indonesia’s Financial Services Authority.
The agreement with ADIA follows GoTo subsidiary Tokopedia’s deal in early October selling its stake in OVO, a digital payments company, to Gojek rival Grab. That brings GoPay, Gojek’s digital payment service, onto Tokopedia’s platform.