By Fabiana Negrin Ochoa
Indonesian tech giant GoTo Gojek Tokopedia has joined forces with the World Bank's International Finance Corp. (IFC) to promote financial inclusion in Southeast Asia's largest economy. The collaboration involves $150 million in funding from the development institution and other investors.
GoTo, known for its ride-hailing and e-commerce services, has obtained $125 million in financing from the IFC and an additional $25 million from private-equity firm Franke & Co. through the issuance of equity-linked bonds, as disclosed in a joint statement on Tuesday.
The IFC's strategic investment is specifically geared towards expanding access to new opportunities across Indonesia, where a staggering 97 million adults remain unbanked. The partnership between the two entities aims to enhance financial inclusion in the country while simultaneously bolstering GoTo's environmental, social, and governance strategies.
Under this collaboration, GoTo will receive non-financial support to facilitate the transition of its fleet of driver-partners and delivery partners to electric vehicles. This initiative is expected to improve operational efficiency and integrate sustainable business practices that align with carbon neutrality goals.