TOKYO SoftBank Corp announced Wednesday it will lead a $100 million investment round in Indonesian ecommerce giant PT Tokopedia, the Japanese mobile carrier's third investment overseas under Vice Chairman Nikesh Arora.
SoftBank's newly formed SoftBank Internet and Media, Inc. (SIMI), led by Arora, will invest about $100 million in a funding round with Sequoia Capital and existing shareholder SB Pan Asia Fund in PT Tokopedia. Representatives from SIMI and Sequoia Capital will also join the Indonesian firm's board of directors, Softbank said.
SoftBank's investment comes after it acquired online video service DramaFever and took a minority stake in privately held Legendary Entertainment earlier this month, the latest in the SIMI's aggressive overseas expansion under Arora, a former Google chief business officer.
"In the Asia region, the growth potential for online marketplaces particularly stands out in Indonesia, and since their founding, Tokopedia has seen remarkable growth with their innovative business model," Arora said in a statement.
"Leveraging synergies with our network of Internet businesses, we are confident we can help Tokopedia's success in the Indonesian market."
Tokopedia was founded in 2009. The company provides an online marketplace that allows individuals and businesses in Indonesia to open their own online stores, a business model similar to that of Japanese ecommerce giant Rakuten Corp.
SoftBank said the investment round was expected to close in December, subject to certain conditions.
(This version of the story corrects spelling of official's name to Arora from Aurora throughout. Corrects company name to SoftBank Internet and Media, Inc.)
(Reporting by Teppei Kasai; Editing by Stephen Coates)