The current raging pandemic has forced several business outlets to revamp their business strategies. With most of the retail business moving online, it seems that the Covid-19 had an extraordinary effect on how companies sell their products.
Retailers going online is nothing new, but when an already established and long-time offline retail center wants to go online, it requires some big-time investors’ backing. Such is the case with Indonesian mall Tokopedia.
It is reported that the firm has bagged itself a total of about US$350 million investment. The funding agreement will soon receive the green signal, and it is estimated to help the company expand its online mall market globally.
Tokopedia’s online marketplace is backed by the SoftBank Group and rose to prominence in the Asian market during the pandemic. The backing of Google and Temasek for the e-commerce business is an excellent deal for expanding its business.
Google and Temasek’s move is not surprising as more of America’s largest corporations try to establish their influence in the growing Asian market. Facebook is reportedly buying a stake in India’s Jio platform, while WhatsApp talks with Gojek to struck a deal for its digital payment service called GoPay.
It is worth remembering that Tokopedia is Indonesia’s second most valuable startup after Gojek. With Google and Temasek investing in, it could mean a huge deal for the American giants.
E-commerce platforms like Tokopedia were the first services to help people purchase goods online amidst the pandemic raging strong. The retailers have offered assistance to expand their business and aid customers stranded during widespread lockdowns.
Asia has become a key market for e-commerce, with American investors looking to get a piece of this pie; the battleground will heat up even more.
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