Alibaba whips up $1.1bn investment for Tokoprdia
The Indonesian online marketplace Tokopedia has raised $1.1 billion in an investment round led by the Chinese internet conglomerate Alibaba, ending months of speculation over the internet giant’s interest in the e-commerce firm.
While the value of the deal was not publicly disclosed, the two parties confirmed that Alibaba had become a minority shareholder. The deal reaffirms Alibaba’s commitment to a region that Google and Singaporean wealth fund Temasek predicted would have an e-commerce industry worth $88 billion in 2035, up from $5.5 billion in 2015.
Last year, the Chinese company bought a 51% stake in the German-owned, Southeast Asia-based e-commerce firm Lazada for $1 billion. Some analysts have speculated about a future merger between the two companies, though Daniel Zhang, Alibaba’s CEO, appeared to rule out consolidation when he spoke of generating “a lot of synergies and chemistries” in the Indonesian market.
“We have always thought of Alibaba as our teacher and role model,” Tokopedia CEO and co-founder William Tanuwijaya said in a statement. “We believe that our partnership will further accelerate Tokopedia’s mission, to democratise commerce through technology.”
Alibaba founder Jack Ma