Updated at 20.03 p.m. on Wednesday (19/10) to retract quotes by Chris Gammons of Bank of America Merrill Lynch.
Jakarta. MatahariMall.com, the Lippo Group's e-commerce arm, announced that it has secured an equity round of $100 million, led by one of the largest general trading companies in Japan, Mitsui & Co, solidifying the company's position as one of the most valuable technology companies in Indonesia.
The investment will consist of several tranches over a 12-month period.
"This is a strong validation of our vision and we look forward to delivering on our next phase of growth," MatahariMall.com chief executive Hadi Wenas said in a statement on Wednesday (19/10).
According to the statement, MatahariMall.com is the latest in a series of Mitsui investments in the e-commerce industry. Mitsui previously led a funding round in Mercari, a leading Japanese customer-to-customer e-commerce marketplace, valuing the company above $1 billion.
"We are confident about Indonesia, and especially e-commerce in Indonesia. We have closely followed MatahariMall's robust growth since its inception, and we are extremely excited to be investing in this company," said Nobuaki Kitamori, chief operating officer of Mitsui's information technology and communication business unit.
"Mitsui is committed to the long-term vision of the business and we look forward to empowering the team," he added.
The funding is part of a larger cooperation between Mitsui and the Lippo Group, whose partnership is concentrated in the Indonesian technology and media space.
Business leaders in Indonesia have lauded the transaction, saying it is another milestone for the country's e-commerce space.
"We are firm believers in supporting national champions, and companies like MatahariMall.com are best positioned to benefit from this digital revolution. Congratulations," Communication and Informatics Minister Rudiantara said.
Indonesian Chambers of Commerce and Industry (Kadin) chairman Rosan Roeslani echoed the minister's sentiments, saying that the transaction is "very positive" and "strategic."
"Mitsui has a proven track record of investments in Indonesia. They know the market well and think very long-term," he said.
Lippo has invested in 24 early stage technology startups in Southeast Asia through Ventura Capital. The Lippo Group also invested in Grab, Southeast Asia's leading ride-sharing platform. According to a recent Bloomberg report, Lippo Group will soon also make inroads into the financial technology space.
In an earlier version of this article, the Jakarta Globe mistakenly included quotes from a statement by Chris Gammons, head of Southeast Asia Investment Banking at Bank of America Merrill Lynch, which was not issued in relation to the story. We regret the error.