Indonesia's GoTo Group raises over $1.3 billion ahead of IPO

Indonesian start-up GoTo Group has secured $1.3 billion from investors in the first close of its pre-IPO funding.

The latest funding round was led by Abu Dhabi Investment Authority (ADIA), with Fidelity International, Google, Avanda Investment Management, PermodalanNasional Berhad (PNB), SeaTown Master Fund, Tencent, Temasek, Primavera Capital, and Ward Ferry. More investors will be joining the start-up's final close of the funding in the upcoming weeks.

GoTo Group will use the proceeds to feed its growth and bolster its customer service. The start-up was created in May from a merger between Indonesia's internet start-ups Gojek and Tokopedia. The company's business ranges from ride-hailing, financial services, and e-commerce.

GoTo Group, the largest technology group in Indonesia, is preparing for a dual listing in New York and Jakarta later this year. The start-up claims to have generated over 1.8 billion transactions in 2020, with a gross transaction value of nearly $22 billion, contributing to more than 2% of Indonesia's GDP. The southeast Asian country of Indonesia has more than $1 trillion in GDP with a population of 270 million. Southeast Asia is one of the world's rapidly growing internet markets because of a young population, rapid smartphone usage, and a growing middle class.