Tokopedia may secure up to $1.5b in fundraise before IPO, sources say

Indonesian ecommerce giant Tokopedia is in discussions to raise as much as US$1.5 billion in a final private funding round before it goes public, Bloomberg reported, citing people familiar with the development.

Photo credit: Tech in Asia

US-based internet companies, as well as existing investors, are looking to participate in the funding round, which could rake in US$1 billion to US$1.5 billion in the first quarter of next year.

The value of the round could still change, as no final decisions have been made, the sources added.

Tech in Asia has reached out to Tokopedia for comment.

In a previous interview, Tokopedia CEO William Tanuwijaya said that the company is looking to attract new investors and raise the company’s profile overseas when he lists the firm’s shares locally and in another market. He declined to give a specific timetable for the IPO because of uncertainties brought by the US-China trade war.

Tokopedia raised US$1.1 billion last year in a funding round led by SoftBank Vision Fund and existing investor Alibaba Group.

Tanuwijaya also previously said that the company aims to hit breakeven next year, expecting its gross merchandise value (GMV) to grow threefold to as much as US$16 billion for this year. Its revenue is growing faster than its GMV, while its network of sellers increased to 6.4 million from around 5 million in 2018, he added.

In the latest e-Conomy report by Google, Temasek, and Bain & Company, Indonesia’s ecommerce market is projected to reach around US$82 billion by 2025, up from US$21 billion in 2019. Tokopedia fights for market share with companies such as Shopee and Lazada, as well as local peer Bukalapak.