Tokopedia, one of Indonesia's largest e-commerce platforms, secured on Thursday (17/08) a $1.1 billion injection from a consortium of investors led by China's e-commerce giant Alibaba. (JG Screengrab)
Tokopedia in No Rush for IPO
JULY 31, 2016
Jakarta. E-commerce site Tokopedia sees no need for an initial public offering in the near term, believing it still has enough funding to support expansion.
Tokopedia operates in an increasingly tight competition in the Indonesian e-commerce market, with rivals like Lippo Group-backed Mataharimall.com, Bukalapak, or Djarum's Blibli and Alibaba's Lazada also vying to dominate a market worth an estimated $130 billion by 2020.
Bhinneka.com, one of the country's oldest e-commerce companies, has set a plan to sell shares to the public in 2018 to raise more capital.
Undaunted, Tokopedia remains confident that a $100 million funding from Japanese SoftBank Internet and Media and Sequoia Capital is more than enough to support growth in the next few years.
"A startup's target is not just fundraising or IPO. It's just one of many ways to raise capital. The most important thing is how we can bring value to the community," said Leontinus Alpha Edison, Tokopedia's co-founder, on Saturday (30/7).
Leontinus admitted that an IPO can boost capital and offer early investors in the company to cash in their gain. But he insisted that Tokopedia's current investors are in no rush to do so.
"An IPO is still very far away for us. It will need a lot of consideration and is not going to happen anytime soon," Leontinus said.