Miguel Cordon · · 2 min readGoTo Group secures $150m from IFC to boost sustainability efforts
Photo credit: GoTo Group
Indonesia’s GoTo Group has formed a partnership with the International Finance Corporation (IFC), a member of the World Bank Group, to boost financial inclusion and sustainability across Indonesia, including to address climate change.
GoTo and its subsidiaries – which include Gojek, Tokopedia, and GoTo Financial – will receive up to US$125 million from IFC and US$25 million from private investment firm Franke & Company. GoTo Group plans to use the cash for working capital.
The deal also involves non-financial support to help GoTo in its transition to electric vehicles for its driver-partners, to improve operational efficiency, and to work toward achieving carbon neutrality. In terms of sustainability goals, the group has previously set the “Three Zeros” commitments – Zero Emissions, Zero Waste, and Zero Barriers – to be achieved by 2030.
The proceeds are given in exchange for new shares and structured private notes to Bhinneka Holdings Limited, an independent entity incorporated in the Cayman Islands.
Bhinneka will in turn issue equity-linked bonds to IFC and Franke & Company, which are exchangeable into series A shares.
Created out of Gojek and Tokopedia’s merger in 2021, GoTo Group serves over 300 million users across Southeast Asia, with Indonesia as its main market. It has an e-bike joint venture called Electrum with TBS Energi Utama, an energy company led by renowned investor Pandu Sjahrir, that aims to manufacture 250,000 e-bikes a year.
After welcoming new CEO Patrick Walujo earlier this year, GoTo Group inches closer to its profitability targets as it is exiting the entertainment business.
Editing by Putra Muskita and Dhania Putri Sarahtika
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
