SoftBank to Invest $100m in Tokopedia
Jakarta. Japanese telecommunications and Internet provider SoftBank is leading a $100 million investment in Tokopedia, an Indonesian marketplace firm, in an effort to tap the Southeast Asian country’s burgeoning e-commerce industry, according to an official statement.
The investment round — which will be under SoftBank’s newly formed Softbank Internet and Media Inc. (SIMI), and joined by Sequoia Capital and existing shareholder SB Pan Asia Fund — will pave the way for SIMI and Sequoia Capital’s representatives to join the Indonesian firm’s board of directors.
Nikesh Arora, vice chairman of SoftBank and chief executive of SIMI said there is great potential for online marketplaces in Indonesia.
“In the Asia region, the growth potential for online marketplaces particularly stands out in Indonesia,” Arora said.
“Tokopedia has seen remarkable growth with their innovative business model. Leveraging synergies with our network of Internet businesses, we are confident we can help Tokopedia’s success in the Indonesian market.”
Japanese companies are turning their investment to Indonesia, with over $2 billion worth of mergers and acquisitions in the country last year or over 17 percent of Japan total investment in Southeast Asia.
William Tanuwijaya, chief executive of Tokopedia, said the investment would help Tokopedia to improve human resources, upgrade technology and enhance the design of its services. Tokopedia is competing with Berniaga, OLX, BukaLapak and Kaskus as the top marketplace platform in Indonesia.
The total volume of e-commerce transactions in Indonesia in 2013 was $5 billion despite the fact that Indonesia has one of the slowest Internet speeds in the world. Additionally, Indonesia has one of the lowest rates of Internet penetration of any country in the world.
Agus Tjandra, the deputy chairman of the Indonesia E-Commerce Association, or idEA, expected the transaction volume of online marketplaces to reach $25 billion by 2016.
source : http://jakartaglobe.id/business/softbank-invest-100m-tokopedia/
