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GoTo to build up war chest with IPO amid fiercer competition
The tech giant aims to raise Rp 17.99 trillion (US$1.26 billion) in the IPO to increase transaction and user volumes.
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Kevin Aluwi, GoTo cofounder and director (left); William Tanuwijaya, GoTo cofounder and commissioner (center); Andre Soelistyo, GoTo CEO, announce the company's initial public offering at the Indonesia Stock Exchange (IDX) on Tuesday. (GoTo /Public relations)
H
omegrown tech giant GoTo Group plans to raise Rp 17.99 trillion (US$1.26 billion) through an initial public offering (IPO) at the Indonesia Stock Exchange (IDX), in a move that analysts say is essential for the company to win over the Indonesian market from competitors.
GoTo issued its prospectus on Tuesday, revealing that 10 percent of the IPO funds will be set aside for its business arms in Singapore and Vietnam. The rest will go to its business in Indonesia, with GoTo and e-commerce arm Tokopedia getting 30 percent each, e-wallet GoPay getting 25 percent and multifinance arm PT Multifinance Anak Bangsa (MAB) getting 5 percent.
“With our future business strategy, there are a lot of investments to be made in technologies and various resources,” GoTo CEO Andre Soelistyo said on Tuesday.
Read also: GoTo merger boosts RI's digital economy
The prospectus was issued a few months after Gojek and Tokopedia announced their merger to form GoTo Group on May 17, 2021, in response to tightening competition for Southeast Asia's largest digital economy from Singapore-based ride-hailing giant Grab and Singapore’s SEA Limited, the publicly listed parent of e-marketplace Shopee.
Andre also reaffirmed GoTo's plan to undergo a dual-listing, even though it was not yet finalized. The company is reported to be planning a listing in the United States.
GoTo posted a Rp 7.59 trillion loss in July last year, narrowing the Rp 10.05 trillion loss posted during the same period in 2020. Without specifying a timeline, Andre said the company had laid out several strategies to turn a profit, such as increasing user and transaction volumes to raise commission and marketplace fee revenues while slashing expenses by improving logistics and automating user acquisition and retention using machine learning.
