GoTo, Indonesia’s largest e-commerce company, reported a half-year net loss of 14.17 trillion rupiah ($955 million) on Aug. 30, more than doubling from a loss of 6.62 trillion rupiah a year earlier.
The tech company was formed from the merger of ride-hailing operator Gojek and e-commerce portal Tokopedia in May last year and listed on the Jakarta Stock Exchange in April, raising $1.1 billion and reporting total revenue of 10.73 trillion Indonesian Rupiah for the first six months of 2022, up from 7.2 trillion rupiah a year ago.
The total value of transactions during the same period reached IDR 290.53 trillion, compared to IDR 204.25 trillion in the first half of last year.
total revenue growth
The company said the increase in revenue and transaction value was driven by “continued monetization efforts,” including updated e-commerce merchant commissions, improved food delivery commissions and a continued recovery in the transportation industry.
GoTo CEO Andre Soelistyo said in a statement: “Our total transaction value and total revenue grew strongly, and our margins continued to improve sequentially, accelerating our path to profitability.”
Targeting “Quality Users”
He noted that the company’s shift from subsidy-driven incentives to a product-led differentiation strategy is working, as it increases user engagement for customers across platforms and allows the company to focus more on cultivating high-quality users.
Jacky Lo, chief financial officer at GoTo Group, said first-half 2022 results showed “continued revenue growth” while the cost structure was “optimizing”.
“Moderate consumption”
Going forward, the company said it will continue to reduce spending and expects “encouraging results” from investments in cross-platform and ecosystem integration.
However, GoTo still appears to have significant funding needs as it seeks to raise around $1 billion through a convertible bond offering, Reuters Quoting industry insiders. The company is reportedly working with three financial advisors and is expected to launch in the fourth quarter of this year.
Acquire a crypto platform
In another development, GoTo is entering the cryptocurrency business, aiming to diversify its services by purchasing local cryptocurrency exchange Kripto Maksima Koin.
In a statement on Aug. 29, GoTo said it acquired a 100 percent stake in Kripto for 124.84 billion rupiah ($8.4 million). It added that the acquisition was part of its plan to turn itself into a “diversified treasury management hub”.
“We believe that blockchain technology may play a mainstream role in finance in the future,” GoTo said.
GoTo, Indonesia’s largest e-commerce company, reported a half-year net loss of 14.17 trillion rupiah ($955 million) on Aug. 30, more than doubling from a loss of 6.62 trillion rupiah a year earlier. The tech company was formed from the merger of ride-hailing operator Gojek and e-commerce portal Tokopedia in May last year and listed on the Jakarta Stock Exchange in April, raising $1.1 billion and reporting total revenue of 10.73 trillion Indonesian Rupiah for the first six months of 2022, up from 7.2 trillion rupiah a year ago. The total transaction amount reached 290.53…
GoTo, Indonesia’s largest e-commerce company, reported a half-year net loss of 14.17 trillion rupiah ($955 million) on Aug. 30, more than doubling from a loss of 6.62 trillion rupiah a year earlier.
The tech company was formed from the merger of ride-hailing operator Gojek and e-commerce portal Tokopedia in May last year and listed on the Jakarta Stock Exchange in April, raising $1.1 billion and reporting total revenue of 10.73 trillion Indonesian Rupiah for the first six months of 2022, up from 7.2 trillion rupiah a year ago.
The total value of transactions during the same period reached IDR 290.53 trillion, compared to IDR 204.25 trillion in the first half of last year.
total revenue growth
The company said the increase in revenue and transaction value was driven by “continued monetization efforts,” including updated e-commerce merchant commissions, improved food delivery commissions and a continued recovery in the transportation industry.
GoTo CEO Andre Soelistyo said in a statement: “Our total transaction value and total revenue grew strongly, and our margins continued to improve sequentially, accelerating our path to profitability.”
Targeting “Quality Users”
He noted that the company’s shift from subsidy-driven incentives to a product-led differentiation strategy is working, as it increases user engagement for customers across platforms and allows the company to focus more on cultivating high-quality users.
Jacky Lo, chief financial officer at GoTo Group, said first-half 2022 results showed “continued revenue growth” while the cost structure was “optimizing”.
“Moderate consumption”
Going forward, the company said it will continue to reduce spending and expects “encouraging results” from investments in cross-platform and ecosystem integration.
However, GoTo still appears to have significant funding needs as it seeks to raise around $1 billion through a convertible bond offering, Reuters Quoting industry insiders. The company is reportedly working with three financial advisors and is expected to launch in the fourth quarter of this year.
Acquire a crypto platform
In another development, GoTo is entering the cryptocurrency business, aiming to diversify its services by purchasing local cryptocurrency exchange Kripto Maksima Koin.
In a statement on Aug. 29, GoTo said it acquired a 100 percent stake in Kripto for 124.84 billion rupiah ($8.4 million). It added that the acquisition was part of its plan to turn itself into a “diversified treasury management hub”.
“We believe that blockchain technology may play a mainstream role in finance in the future,” GoTo said.
