Japanese telco Softbank intends to lead an investment of about US$100m in Indonesian e-commerce company Tokopedia, as it pursues its strategy of becoming Asia’s largest internet company.
US-based venture capital firm Sequoia Capital and existing…
Japanese telco Softbank intends to lead an investment of about US$100m in Indonesian e-commerce company Tokopedia, as it pursues its strategy of becoming Asia’s largest internet company.
US-based venture capital firm Sequoia Capital and existing Tokopedia shareholder SB Pan Asia Fund will also take part in the financing round, which will see representatives of both Softbank and Sequoia join the Indonesian company’s board of directors.
Softbank will participate via newly-formed unit Softbank Internet and Media (SIMI), led by group vice chairman Nikesh Arora, according to a company statement.
This move marks the latest in a string of online and media content investments for the Japanese operator and the third such international investment since Arora, formerly Google’s chief business officer, joined the company in July.
This month alone, Softbank announced plans to invest US$250m to create a joint venture with US-based media giant Legendary Entertainment, and snapped up Korean online video service DramaFever for an undisclosed sum.
Softbank is reportedly also set to lead Indian online retailer Snapdeal’s move to raise US$600m-US$650m from existing investors to expand operations, which would mark the largest ever investment in the Indian e-commerce sector.
Meanwhile, it holds a 32% stake in Alibaba, which was valued at US$75bn when the Chinese e-commerce giant launched its IPO in late September.
Softbank, which provides mobile and fixed-line communications and internet services, said it hopes the partnership with Tokopedia will help it reach its goal of becoming the number one internet company in Asia, and facilitate growth via synergies with its other internet subsidiaries.
Tokopedia will use the funds to focus on acquiring new customers, hiring staff and other initiatives designed to bolster its position in the local e-commerce market.
Arora said the company is pleased to be working closely with Tokopedia, saying there is particularly strong growth potential for e-commerce businesses in Indonesia.
“Leveraging synergies with our network of internet businesses, we are confident we can help Tokopedia’s success in the Indonesian market.”
The investment is expected to close in December, subject to certain conditions.
Founded in 2009, Tokopedia provides an online marketplace which allows individuals and businesses to operate their own online stores for free. It is also backed by Indonusa Dwitama, East Ventures, CyberAgent Ventures and BEENOS.
