TikTok Acquires Major Stake in Indonesian E-Commerce Giant Tokopedia for $840m

In a significant move within the e-commerce sector, TikTok, owned by China's ByteDance, has finalized a deal to acquire a majority stake in GoTo's e-commerce unit, Tokopedia. This acquisition, totaling $840 million, marks TikTok's re-entry into the Indonesian market, following a previous setback due to local regulations.

Transaction Snapshot

  • Deal Value: TikTok to spend $840 million initially, with total investment reaching $1.5 billion.
  • Deal Type: Acquisition of majority stake.
  • Investors: TikTok, owned by ByteDance.

TikTok's strategic purchase involves acquiring 75.01% of Tokopedia, Indonesia's leading e-commerce platform. The deal includes injecting TikTok Shop's Indonesian operations into Tokopedia, creating a robust e-commerce entity. This move comes after TikTok's earlier e-commerce venture, TikTok Shop, was halted in Indonesia due to a ban on online shopping via social media, aimed at protecting smaller merchants and user data.

GoTo CEO Patrick Walujo highlighted the combined strengths of Tokopedia's local presence and TikTok's technological capabilities, envisioning a fortified Indonesian e-commerce market. The partnership is set to benefit not only the e-commerce domain but also GoTo's other business areas, including on-demand services and fintech.

The acquisition process will include a pilot period, closely monitored by relevant regulators. Furthermore, TikTok has committed to a promissory note of $1 billion to Tokopedia, aiding its working capital requirements.

With Indonesia's e-commerce industry projected to reach $160 billion by 2030, this deal positions Tokopedia and TikTok at the forefront of a rapidly expanding market. The competitive landscape features other major players like Shopee, owned by Singapore's Sea, and Lazada, part of Alibaba Group.

Tokopedia's recent financial performance shows promise, with a 14% increase in gross revenue and a significant reduction in losses. This partnership with TikTok could further enhance its market position in the face of stiff competition and a dynamic e-commerce environment.

📌 If you want more of this, subscribe to our newsletter - bite-sized tips and data to help you plan and execute your exit or capital raise.

Back to blog