November 12, 2021: The technology company said that Indonesia’s GoTo Group had secured $1.3 billion from investors in the initial close of the funding round ahead of a planned initial public offering.

Backers in the pre-IPO funding round include tech titans such as Google and Tencent, Singapore state investor Temasek, Malaysian sovereign wealth fund Permodalan Nasional Berhad, and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.

The company creates in May from a merger amid Indonesia’s internet start-ups Gojek and Tokopedia. Its business spans ride-hailing, financial services, and e-commerce.

GoTo Group said it expects investors to join the pre-IPO funding round ahead of its final close in the coming weeks. According to the company, the fresh funds would be invested into growing the customer base and expanding payments and financial services products.

Last month, GoTo Group said it reached an agreement with the Abu Dhabi Investment Authority. The sovereign wealth fund would lead the tech pre-IPO fundraising with a $400 million investment of the company.

Earlier reports suggest that GoTo Group could seek a public market valuation target of $35 billion to $40 billion. In August, Reuters reported that regulatory delays could push the tech company’s listing that plans to early 2022.

“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 expanding digital economy and our market-leading position,” Andre Soelistyo, CEO of GoTo Group, said.

The coronavirus pandemic accelerated the demand for online services across the globe. Indonesia’s internet economy predicting to have grown by 75% from $40 billion in 2019 to nearly $70 billion this year, according to a report this week from Google, Temasek, and Bain & Company.

Tech companies such as GoTo Group found pockets of growth in e-commerce, food and grocery delivery, and logistics.