SoftBank Invests US$100mn in Tokopedia

TEMPO.CO, Jakarta – Japanese investment firm SoftBank Corp. made their first investment in Indonesia through e-commerce marketplace PT Tokopedia. SoftBank Internet and Media, Inc. (SIMI) will invest US$100 million in a funding round with Sequoia Capital and existing shareholder SB Pan Asia Fund in the Indonesian e-commerce giant.

"Representatives from SIMI and Sequoia Capital will also join the Indonesian firm's board of directors," SoftBank vice chairman Nikesh Arora said yesterday.

Arora, a former Google chief business officer said the investment is inseparable from the fact that in the Asia region, the growth potential for online marketplaces particularly stands out in Indonesia.

"Since their founding, Tokopedia has seen remarkable growth with their innovative business model," Arora said in a statement. Through the investment and leveraging synergies with SoftBank's internet business network, Arora is confident that the Japanese firm can help Tokopedia succeed in the Indonesian market.

Founded in 2009, Tokopedia is as an online marketplace where individuals and business owners can open and operate online stores.. Tokopedia's a business model similar to that of Japanese ecommerce giant Rakuten Corp.

Tokopedia president director William Tanuwijaya welcomes SIMI and Sequoia as the company's new shareholders. "I look forward to their next steps to help Tokopedia rise to a higher level," he said.

SoftBank is the biggest investor for Alibaba in China, Yahoo Japan, and Supercell—the gaming company behind Hay Day and Clash of Clans. Sequoia Capital is the startup investor for Apple, CISCO, Oracle, Yahoo, Google, LinkedIn, YouTube, WhatsApp, and Instagram. 

REUTERS | CNBC