One of the largest e-commerce company in Indonesia, Tokopedia, is receiving investment from Google and Temasek. (Image via Kompas Money)

Google, Temasek injects Rp4.9 billion into Tokopedia

World's largest search engine based in the U.S, Google, and Singaporean commercial investment, Temasek Holdings, reportedly bought shares in Indonesia-based e-commerce unicorn, Tokopedia. Therefore, Google now holds 1.6% shares at Tokopedia amounted to Rp16.7 billion, while Anderson Investments as Temasek's affiliation holds 3.3% shares amounted to Rp33.4 billion. The news was confirmed by the Ministry of Law and Human Rights on 4 November 2020.

According to Nikkei Asia, Google and Temasek decided to invest US$350 million or around Rp4.9 billion, and the amount does not reflect the equity paid by the two companies. Meanwhile, the investment may come in several stages and both Google & Temasek could increase their ownership of Tokopedia in the future.

Previously, the Japanese-flagged multinational conglomerate, SoftBank Group, was the biggest shareholder in Tokopedia with 33.9% shares from the investment by various entities, including the SoftBank Vision Fund. However, SoftBank seemed to release part of its Tokopedia's shares in the secondary market, known from the decrease in its ownership, compared to May 2020. Meanwhile, Alibaba Group from China is the second-largest shareholder with 28.3% shares.

Google's investment in Tokopedia is its second investment in Indonesian unicorns. The first was GoJek in 2018 with 6.9% shares, making Google as the second-largest shareholders after Gamvest, an entity owned by Singaporean GIC, starting mid-July 2020.

Allegedly, Google bought shares in Tokopedia as it sees investment potential in Asia as the economic growth in Europe and the U.S is slumping. Therefore, as they have done it in India, now Google is doing the same thing in Indonesia, as the third-largest market in Asia. According to PYMNTS, Indonesia is experiencing a huge e-commerce boom. Indonesian online shopping trend will grow almost four times in 2025 at US$82 billion.

Source: https://bit.ly/3kB6nY3