Indonesian ecommerce site Tokopedia is not planning to go public anytime soon. The company believes is still has enough funding to support expansion. Indeed, Tokopedia has recently raised $147.7 million funding, bringing the total funding of $247.7 million which sets the company as the best-funded startup in Indonesia.
Tokopedia operates in an increasingly tight competition in the Indonesian ecommerce 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.
Meanwhile, Bhinneka.com, one of the country’s oldest ecommerce companies, has set a plan to sell shares to the public in 2018 to raise more capital. But Tokopedia remains confident that the fund that they got from various investors like Softbank, Sequoia Capital and other undisclosed investors is 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.
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.
A version of this appeared in Jakarta Globe on July 31. Read the full article here.