GoTo Group, the Indonesia merged entity of Gojek and Tokopedia, announced Thursday the first close of its pre-initial public offering (IPO) fundraising, securing more than US$1.3 billion.

The round was backed by investors including a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), Avanda Investment Management, Fidelity International, Google, Permodalan Nasional Berhad (PNB), Primavera Capital Group, SeaTown Master Fund, Temasek, Tencent, and Ward Ferry.

Further investors are expected to join the pre-IPO fundraising round ahead of the final close in the coming weeks.

GoTo said in a statement that the funds raised will allow the group to invest further in its ecosystem, strengthen its market-leading position in the region, and better serve customers, which includes continued focus on customer growth and engagement, expansion of its payments and financial services offering, and leveraging its integrated transport fleet and logistics network to enhance hyperlocal experiences.

“Indonesia and Southeast Asia are some of the most exciting growth markets in the world, and the backing we’ve secured shows the confidence that investors have in the region’s rapidly expanding digital economy and our market-leading position,” said Andre Soelistyo, Chief Executive Officer of GoTo Group.

“Consumer demand is being unlocked by growth in digital adoption that has brought many new users online. As a result, demand for our services continues to increase, underscored by our commitment to continuously deliver selection, value and convenience to users across the ecosystem,” he added.

Meanwhile, Primavera Capital Group Managing Director Michael Woo said GoTo is a national champion with the largest and most comprehensive ecosystem for digital daily life in Indonesia.

“We foresee secular growth opportunities for Indonesia and GoTo across e-commerce, on-demand mobility and fintech – all segments in which Primavera has extensive investment experience. We’re excited to partner and grow together with GoTo, leveraging our expertise and resources where helpful for management.”

Seatown Master Fund Deputy Chief Investment Officer Steven Chua also said the fund is pleased to be able to participate in GoTo Group’s mission to empower progress.

“Digital economic growth, especially in Indonesia and other fast-growing markets in ASEAN, is a key investment focus for us. We have been an investor in Gojek for several years now and look forward to continuing our journey with the enlarged GoTo Group as it enters its next growth phase,” he added.

Indonesia has a gross domestic product (GDP) of more than $1 trillion and is the fourth most populous country in the world, with a young, tech-savvy population of 270 million.

GoTo’s ecosystem encompasses nearly two-thirds of Indonesian consumer expenditure and its total addressable market is set to grow to over $600 billion in Indonesia by 2025.

The country also has almost 140 million people with little or no access to1 the country’s formal financial system, presenting a significant growth opportunity for the company in payments and financial services.

Gojek and Tokopedia combined to form GoTo in May 2021 and the new company has already captured significant synergies among the Gojek, Tokopedia, and GoTo Financial brands. Its services span on-demand transport, e-commerce, food and grocery delivery, logistics and fulfillment, and financial services. The group generated over 1.8 billion transactions in 2020, with a total group gross transaction value of over $22 billion and contributed to more than 2 percent of Indonesia’s GDP.

Citi and Goldman Sachs are acting as the financial advisors to GoTo on the fundraising and Davis Polk and Wardwell and Assegaf Hamzah and Partners are serving as GoTo’s legal advisors.

ADIA to lead GoTo Group’s pre-IPO fundraising with $400M investment