PE-backed GoTo targets $1.1b Indonesia IPO

The offering will be the first under a new regulatory regime in Indonesia permitting multiple share-class structures that allow founders to be diluted but retain control. E-commerce platform Bukalapak raised IDR 21.9trn last year – becoming the country’s first unicorn to go public – prior to these changes. GoTo is also expected to pursue a share listing in the US in due course.

The company plans to sell 48bn Series A shares for IDR 316-356 apiece, according to a statement. The offering could swell to IDR 17.5trn if the greenshoe option be exercised. Based on the target pricing range, GoTo would have a market capitalisation of IDR 376.6-413.7trn (USD 26.2-28.8bn). It raised USD 1.3bn in pre-IPO funding last November at a reported valuation of USD 28.5-30bn.

Alibaba has a 9.16% stake in the company, while SoftBank Vision Fund owns 9.03%, the prospectus shows. A further 9.35% is held by GoTo Peopleverse Fund, of which the beneficial owners are charitable organisations, including Transformational Business Network. Their voting rights are much smaller given the multi-class share structure.

Other investors include Abu Dhabi Investment Authority (ADIA), Temasek Holdings, Astra International, Facebook, Google, JD.com, Tencent Holdings, BlackRock, Capital Group, DST Global, KKR, Northstar Group, Sequoia Capital India, Warburg Pincus, Fidelity International, Primavera Capital Group, and Ward Ferry.

GoTo is the product of a merger last year between Gojek, which covers multiple forms of transportation as well as food delivery, logistics, and finance, and e-commerce marketplace Tokopedia. It claims to be the largest mobile on-demand services and payments platform in Southeast Asia, presiding over an ecosystem that contributes more than 2% of Indonesia’s GDP.

Pro forma gross transaction value for the 12 months ended September 2021 was IDR 414.2trn, while pro forma gross revenue was IDR 15.1trn. Over the same period, the company completed approximately 2bn orders and had 55m annual transacting users, 2.5m registered driver partners, and 14m registered merchants in its network.

GoTo continues to incur heavy losses, though they do appear to be narrowing. Its net loss fell from IDR 24.1bn in 2019 to IDR16.7bn in 2020. For the first seven months of 2021, it was IDR 8.14bn, down from IDR 11.1bn a year earlier.

“The strength of our business is that we are more than the sum of our parts. Our ecosystem of on-demand, e-commerce and financial technology services connects millions of consumers, driver-partners and merchants, with the mission to empower progress for everyone in the fast-growing digital economy,” said Andre Soelistyo, CEO of GoTo.

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• Topics
• Southeast Asia
• IPO
• Technology
• Consumer
• Indonesia
• Softbank
• Alibaba Group
• GoTo
• TMT