Google, Temasek Invest In Indonesia’s Tokopedia
Nov 14, 2020

Google and Singapore’s sovereign investment fund Temasek have completed their acquisition of a stake in Indonesia’s e-commerce company Tokopedia, according to a report in Nikkei Asia.

This confirms earlier reports by news wires including Bloomberg that the two companies agreed on a cash injections of about $350 million in the e-commerce company, which already has the status of a unicorn – a privately held startup company valued at over $1 billion.

Google now holds 1.6 per cent of Tokopedia, while Temasek-affiliated Anderson Investments has a 3.3% stake, according to documents filed on November 4 to Indonesia’s Ministry of Law and Human Rights.

Japan’s SoftBank Group remains the largest shareholder in Tokopedia with a 33.9-per cent stake in the company held through multiple entities including the large-scale, innovation-centered Vision Fund. Alibaba Group is the second largest shareholder with a 28.3-per cent stake.

Tokopedia is one of Indonesia’s five unicorns

Google’s investment in Tokopedia is its second cash injection into an Indonesian unicorn, having invested in ride-hailing firm Gojek back in 2018.

Google’s latest deal is the third investment this year by a US tech firm into an Indonesian unicorn. Both Google’s deal and Microsoft’s investment into Bukalapak followed Facebook and PayPal’s investment into Gojek in June.

Other Indonesia unicorns are travel service firm Traveloka and fintech company OVO.

Indonesia’s e-commerce market is worth an estimated $32 billion in 2020 and is set to grow to $83 billion in 2025, according to a recent market study by Google, Temasek and Bain & Company.