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Hello readers,
When I read about the adventures of regional tech companies, I sometimes picture them as individuals suffering (and enjoying) the skirmishes of startup life. That might be why we’re drawn to using these companies’ chief executives as convenient representations of their firms, I suppose.
After reading today’s featured premium story on GoTo Group’s efforts in expanding regionally to make its case for a strong public listing, I kept imagining a human avatar of the company undergoing a job interview, convincing potential employers (read: investors) of the value they can bring both now and in the future.
Today, we look at:
- What GoTo’s regional stumbles could indicate for its planned IPO
- An Indonesia-based insurtech startup locks down its pre-seed funding to the tune of a cool million
- Other newsy highlights such as the Chinese government ordering Alipay to split its services and a bunch of funding news
PREMIUM SUMMARY
Navigating regional expansion with GoTo
Humor me for a second and think of Hollywood actor Samuel L. Jackson.
I bet your first image was of him loudly cussing out some unfortunate soul or firing a pistol angrily at said unfortunate soul (or both), right?
That’s typecasting, where an actor is so strongly identified with certain roles that it’s hard to imagine them playing any other kind of personality. That’s something that GoTo Group is trying to break out of – it wants to be a true regional player and convince people that it’s not just an Indonesian powerhouse.
- Two steps forward, one step back: Since 2018, Gojek has aggressively tried to make inroads into Southeast Asian markets. However, by the third year of its expansion efforts, it had managed to maintain a presence in only three of the six markets in the region. After it exited Thailand in July, that number went down to two. The company then doubled down on Indonesia by merging with Tokopedia to form the GoTo Group.
- It’s not over yet: Gojek stresses that the sale of its Thai business was not a sign of regional surrender. Rather, it says the move was intended to help maintain focus on its better-performing overseas markets, namely Vietnam and Singapore, and that it remains committed to establishing a regional presence.
- All for the moolah: GoTo’s efforts to expand come with its public listing plans in mind. Theoretically, a regional company would have a larger total addressable market than a single-market firm. This often means loftier valuations and investments for firms with a wider geographical reach. For GoTo, this is especially relevant since two of its main competitors – Grab and Shopee – are regional players.
Read more: Will GoTo’s SEA story entice enough investors?
STARTUP SPOTLIGHT
Who wants to be a millionaire?
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