Hanoi (VNA) – Chinese short-video platformTikTok on December 11 announced an investment of 1.5 billion USD in GoTotechnology firm of Indonesia following an agreement to restart its shopping appin the Southeast Asian country.
Under the deal, the social media giant will combine itsIndonesian TikTok Shop business with GoTo’s e-commerce unit Tokopedia. TikTokgets a 75% stake in the combination, which will run the shopping features ofTikTok’s social media app in Indonesia.
A statement of GoTo said that TikTok has committed to investover 1.5 billion USD in the enlarged entity over time, to provide futurefunding required by the business, without additional dilution to GoTo. Goingforward, TikTok, Tokopedia and GoTo will transform Indonesia’s e-commercesector, creating millions of new job opportunities over the next five years.
The transaction, which is expected to close in the first quarter of 2024, is inline with the GoTo Group’s strategy to strengthen its financial and strategicposition by growing its total addressable market, it said.
In October, TikTok was forced to shut down its e-commerceservice in Indonesia when authorities banned online shopping on social mediaplatforms, a move intended to protect small merchants.
Online commerce platforms such as Tokopedia, Shopee andLazada dominate the Indonesian e-commerce market. However, TikTok Shop hasgained significant market share since its presence in Indonesia in 2021. With125 million users, Indonesia is TikTok's second-largest market in the worldafter the US./.
Under the deal, the social media giant will combine itsIndonesian TikTok Shop business with GoTo’s e-commerce unit Tokopedia. TikTokgets a 75% stake in the combination, which will run the shopping features ofTikTok’s social media app in Indonesia.
A statement of GoTo said that TikTok has committed to investover 1.5 billion USD in the enlarged entity over time, to provide futurefunding required by the business, without additional dilution to GoTo. Goingforward, TikTok, Tokopedia and GoTo will transform Indonesia’s e-commercesector, creating millions of new job opportunities over the next five years.
The transaction, which is expected to close in the first quarter of 2024, is inline with the GoTo Group’s strategy to strengthen its financial and strategicposition by growing its total addressable market, it said.
In October, TikTok was forced to shut down its e-commerceservice in Indonesia when authorities banned online shopping on social mediaplatforms, a move intended to protect small merchants.
Online commerce platforms such as Tokopedia, Shopee andLazada dominate the Indonesian e-commerce market. However, TikTok Shop hasgained significant market share since its presence in Indonesia in 2021. With125 million users, Indonesia is TikTok's second-largest market in the worldafter the US./.
VNA
