Indonesia’s largest tech group GoTo is set to wrap up a pre-IPO funding exercise to raise up to $2 billion in the next few weeks, Reuters reported.

Quoting sources, the report said regulatory delays threaten to push its listing plans to early next year.

The delay comes as Indonesia’s Financial Services Authority (OJK) considers new listing guidelines for tech companies to offer dual-class shares that confer different voting rights, according to sources who spoke on anonymity conditions.

OJK has yet to respond to TechNode Global‘s query.

GoTo was formed through the merger Gojek, a ride-hailing-to-delivery-to-payments unicorn, and EGo-commerce firm Tokopedia in May.

The merged entity was said to be targeting a listing in Indonesia by year-end, followed by a US listing, with a potential valuation of approximately $40 billion.

Delays to a proposed revamp of Indonesia’s listing rules, now expected to be announced late in September, would mean GoTo is only likely to launch its IPO early next year, then followed by the US listing, according to the report.

Meanwhile, a source reportedly said the effort to raise funds of $1.5 billion to $2 billion ahead of the IPO exercise could be completed next month.

GoTo is backed by investors including China e-commerce giant Alibaba Group, Japan’s Softbank Vision Fund, Singapore’s GIC, among others. It is among the tech companies in Southeast Asia benefiting from higher usage of digital platforms by homebound consumers due to lockdowns imposed to contain the COVID-19 pandemic.

GoTo’s potential IPO is closely watched after Indonesian e-commerce firm raised $1.5 billion in the country’s largest IPO last month.

It was reported that GoTo posted group gross transaction value (GTV) of over $22 billion and over 1.8 billion transactions last year. The combined entity has more than two million total registered drivers and over 11 million merchant partners on its platform, as of December 2020.

Featured image credits: GoTo

It’s happening: Gojek and Tokopedia finalize merger to form GoTo Group