Tokopedia leads the e-commerce development boom in Indonesia and has served 100 million users

After years of serving millions of consumers and merchants as a pioneer in Indonesian e-commerce , the unicorn Tokopedia plans to go public in 2021 through a merger with on-demand services and payments company Gojek.

When users open the Tokopedia app or website, they will find services including online retail , digital payments , ticketing, hotel reservations, movie and event ticket bookings, subscription plans for streaming services, etc. In the early stages, Tokopedia is limited to providing functions similar to buying and selling some goods on Taobao or Amazon . Most of its merchants are small and medium-sized business owners, and Tokopedia takes a commission from each transaction.

Through these methods, Tokopedia quickly established a solid user base . In 2014, the platform also attracted the attention of SoftBank and Sequoia Capital, receiving an investment of up to US$100 million.

The investment provided Tokopedia with a war chest to diversify, and by 2016, fintech was high on the agenda.

Tokopedia subsequently introduced payment channels such as mobile phone credit and electricity bill credit , while Tokopedia introduced banking services such as the credit card application function developed jointly with Standard Chartered Bank , UOB Bank and Citibank.

Users are able to complete all these operations in one application , which provides more convenience for local consumers to shop online.

As an e-commerce giant in Indonesia, Tokopedia has made great contributions to the development trajectory of Indonesia's e-commerce. At the same time, the digitalization of small and medium-sized enterprises is also a top priority for Indonesia's economic development.

Small and medium-sized enterprises are the backbone of Indonesia's economy. According to the Ministry of Cooperatives and SMEs, small businesses account for more than 90% of the country's enterprises and contribute about 60% of the country's GDP.

Many of these businesses have been slow to adopt new technological tools due to patchy internet coverage and a poor digital environment in Indonesia’s smaller towns.

The Indonesian Center for Policy Studies ( CISP) found that of Indonesia’s 62.9 million MSMEs, only 13% were aware that digital services, including marketplace listings and online marketing campaigns , could drive additional business. Tokopedia is among them.

Tokopedia launched the Mitra Tokopedia app in 2018, which is similar to Bukalapak's competitor Mitra Bukalapak, a platform that allows owners of small businesses such as grocery stores and warungs to sell digital necessities .

The development of Southeast Asia's digital economy has also attracted many global technology giants to invest. With the booming development of financial technology, Tokopedia 's business development may be even more prosperous.

E-commerce platform

Southeast Asia