Indonesian unicorn and leading technology company Tokopedia announced it has secured $1.1 billion in its latest financing round led by the SoftBank Vision Fund and Alibaba Group with participation by Softbank Ventures Korea and other existing investors. The company expects to use the funds to build technology and infrastructure that empowers millions of local businesses to grow as well as provide the best customer experience.
“In our first nine years, Tokopedia focused 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, fulfilment, payments and financial services technologies will empower commerce, both online and offline. This will broaden Tokopedia’s scale and reach while improving operational efficiencies to support the millions of businesses and partners in our ecosystem and further our mission to democratise commerce through technology in Indonesia,” William Tanuwijaya, CEO and Co-Founder of Tokopedia, said in statement today.
“We see our mission – to make it easy to do business anywhere – reflected in Tokopedia’s journey,” said Kenny Ho, Head of Investment, Southeast Asia and India at Alibaba Group. “We are excited to deepen our relationship with Tokopedia in enabling Indonesian small businesses and accelerating Indonesia’s economic development,” said Lydia Jett, senior investor at SoftBank Investment Advisers and Tokopedia Board Member.
Tokopedia’s ecosystem currently reaches 93% of districts in Indonesia across 17,000 islands. In the past year, the company has quadrupled its gross merchandise value and now provides same-day delivery to 25% of its transactions.
Although Tokopedia did not disclose its valuation after the round, some estimates that the e-commerce giant valuation is now at $7 billion.