After raising US$1.1B, Tokopedia will remain focussed on Indonesian market
Indonesian e-commerce unicorn Tokopedia today announced that it has raised a US$1.1 billion funding round led by SoftBank Vision Fund and Alibaba Group, with participation by Softbank Ventures Korea and other existing investors.
Though the company’s valuation was not mentioned in an official press statement, Tech News reported that the funding round has put its valuation to US$7 billion.
The report also mentioned that the deal has been agreed in October, and that SoftBank has transitioned its shareholding in Tokopedia to its Vision Fund.
With the new funding, Tokopedia stated that it will continue its focus on Indonesian market, which it claimed to have served 93 per cent of districts in the country.
It also aims to drive economic development and financial inclusion in Indonesia, and will use the funding to build the technology and infrastructure to empower small- and medium-sized enterprises (SMEs) as well as improve customer experience.
Also Read: How Tokopedia uses localisation strategy to reach out to Indonesia’s uniquely diverse society
“In our first nine years, Tokopedia focussed on building Indonesia’s largest marketplace for physical and digital goods. Leading into our tenth year, Tokopedia is evolving our ecosystem to infrastructure-as-a-service where our logistics, fulfillment, payments and financial services technologies will empower commerce, both online and offline,” said Tokopedia CEO and Co-Founder William Tanuwijaya.
“This will broaden Tokopedia’s scale and reach while improving operational efficiencies for the millions of businesses and partners in our ecosystem and further our mission to democratise commerce through technology in Indonesia,” he continued.
Tokopedia also said that in the past year, the company has quadrupled its gross merchandise value and now provides same-day delivery to 25 per cent of its customers.
The funding announcement came at a time when Indonesia’s most well-funded startups, such as Go-Jek, have been reported to raise new funding to fuel the competition to become a “super app.”