Indonesia’s Tokopedia Secures $1.1b From Alibaba, SoftBank

1 min readUpdated Jun 4, 2025Dec 20, 20181:05 AM

In this article (4)

Indonesian e-commerce company Tokopedia said on Wednesday that it had secured $1.1 billion in its latest funding round led by Chinese e-commerce giant Alibaba Group Holding and Japan’s SoftBank Group. This follows a similar investment in 2017, also led by Alibaba, which has been expanding rapidly into Southeast Asia amid slowing growth in China’s e-commerce market.

Tokopedia said it planned to use the funds to invest in technology and infrastructure, adding that the firm would continue to focus on the Indonesian market and drive economic development and financial inclusion in the country.

The investment would help “broaden Tokopedia’s scale and reach” besides improving its operational efficiency, chief executive and co-founder William Tanuwijaya said in a statement.

Tokopedia did not confirm a valuation following the round. However, news website TechCrunch citing an unnamed source said the company was valued at around $7 billion.

The latest funding boosts Alibaba’s share of the fast-growing Indonesian e-commerce market. The Chinese company is also the majority owner of Lazada, which is the Tokopedia’s top competitor in the market.

Indonesia is also increasingly becoming a proxy battleground for Alibaba and JD.com, China’s second-largest e-commerce company, which has invested heavily in building a logistics network in the archipelago.

Founded in 2009, Tokopedia is currently Indonesia’s largest online marketplace, drawing comparisons to Alibaba’s Taobao.

The latest round includes investments from Softbank’s Vision Fund as well as Softbank Ventures Korea and Sequoia Capital.

The company, which delivers to around 93 percent of Indonesian districts, says it has quadrupled its sales in the past year.

AdvertisementAdvertise with usMobile 320×100

What this means

This significant funding round from Alibaba and SoftBank substantially bolsters Tokopedia's position, cementing its dominance in Indonesia's e-commerce landscape. The investment pressures Lazada, Alibaba's other major stake, and rivals like JD.com, which has also invested heavily in the archipelago's logistics. Unlike JD.com's proposed Ceconomy investment in Germany, which faces regulatory hurdles, Alibaba's continued backing of Tokopedia uses its established presence. This move provides Tokopedia with crucial capital to fend off competitors and expand its reach, as demonstrated by its quadrupled sales. The primary risk lies in effectively integrating this capital into scalable technology and infrastructure to maintain its lead. We will be tracking Tokopedia's reported quarterly sales figures.

Maria Santos · Retail News Asia newsroom

Questions & Answers

Which companies led this latest funding round for Tokopedia?

The latest funding round for Tokopedia was led by Chinese e-commerce giant Alibaba Group Holding and Japan’s SoftBank Group. This continues a previous pattern of investment from Alibaba into the Indonesian company.

How does Tokopedia intend to use the newly secured funds?

Tokopedia plans to use the $1.1 billion to invest in technology and infrastructure. The company will continue to focus on the Indonesian market, aiming to drive economic development and financial inclusion.

What is the relationship between Alibaba and Tokopedia's competitor, Lazada?

Alibaba is the majority owner of Lazada, which is identified as Tokopedia’s top competitor in the Indonesian e-commerce market. This investment further boosts Alibaba's presence there.

Reader pulse

Is this a smart investment for Alibaba?

21,526 votes so far