ADIA to lead GoTo's pre-IPO funding round with $400m investment | FI SENSE


A wholly-owned unit of Abu Dhabi Investment Authority (ADIA) has signed an agreement to lead the pre-IPO round of Indonesia’s largest tech group GoTo with a $400 million investment, according to a statement on Wednesday.

The deal marks ADIA’s Private Equities Department’s first investment in a Southeast Asian technology business, and also its biggest investment in Indonesia so far.

DealStreetAsia was the first to report on the talks earlier this month.

GoTo is understood to be raising its ongoing funding round in stages, with an aim to wrap it up by the end of the year.

“Backing of this scale underlines our belief that Indonesia and Southeast Asia are emerging as the next great destinations for tech investment,” GoTo group CEO Andre Soelistyo said in a statement.

ADIA, which is the sovereign wealth fund of the emirate of Abu Dhabi in the UAE, will join global investors such as Alibaba, Facebook, Google, KKR, PayPal, Sequoia India, SoftBank Vision Fund 1, Temasek, Tencent, and Warburg Pincus on GoTo’s captable.

The company, formed from the merger of homegrown unicorns Gojek and Tokopedia earlier this year, is also backed by local names such as Astra International, Global Digital Niaga (GDN), and Telkomsel.

The executive director of ADIA’s private equities department, Hamad Shahwan Al Dhaheri, said the firm sees a “strong potential in the region, particularly in Indonesia where there is a vibrant economic backdrop,” noting that such background is encouraging ADIA to continue to deepen its presence in the country.

While ADIA is relatively new to tech investments, it had recently formed a $3.75 billion toll road fund with Indonesia’s sovereign wealth fund INA and other investors, including Caisse de dépôt et placement du Québec (CDPQ) and APG Asset Management (APG), in May.

In the run-up to its IPO, GoTo conducted several transactions to enhance its valuation and help it comply with local regulations. This includes buying out the stakes of its foreign investors in its fintech arm GoPay.

GoTo is reportedly targeting to list on the Indonesia Stock Exchange (IDX) by early next year, following fellow-unicorn and e-commerce marketplace Bukalapak’s successful IDX debut in August.



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