Breakingviews

Super-app GoTo drives towards a steady debut

2 minute read

A Gojek driver rides his motorcycle through a business district street in Jakarta, June 9, 2015. REUTERS/Beawiharta

Register now for FREE unlimited access to Reuters.com

MUMBAI, Oct 21 (Reuters Breakingviews) - GoTo’s $400 million fundraising from the Abu Dhabi Investment Authority values the ride-hailing-to-fintech group at some $28.5 billion, according to a person familiar with the situation. It provides read more a timely valuation boost to the Indonesian super-app ahead of a much-anticipated listing in Jakarta early next year, followed by New York.

The latest price tag is a big jump from the $18 billion headline number set one year or more ago from individual fundraising by Gojek and Tokopedia. Those respective valuations underpinned the subsequent merger of the pair announced in May. Assuming a 15% discount typical of a pre-IPO capital call, GoTo might be worth $32 billion.

Benchmarks are all over the place, however. Top rival, Singapore-based Grab, has delayed its New York debut following its $40 billion deal struck in May with a special-purpose acquisition vehicle. And Indonesia-focused e-commerce group Bukalapak (BUKA.JK), which went public read more in August, is trading well below its initial public offering price. With much uncertainty, setting big milestones with a serious sovereign investor looks wise. (By Una Galani)

Register now for FREE unlimited access to Reuters.com

On Twitter http://twitter.com/breakingviews

Capital Calls - More concise insights on global finance:

Evergrande deal dispute reinforces bidders’ fears read more

Spanx’s “velvet ghetto” read more

Canadian National CEO gets off the train read more

Goldman is in not-so-splendid green isolation read more

Nordic optical IPO’s fortune is tied to EssiLux read more

Register now for FREE unlimited access to Reuters.com
Editing by Robyn Mak and Katrina Hamlin

Breakingviews
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters