GoTo isn’t the only Asian tech company whose valuation has plummeted since its IPO.
His GoTo in Indonesia has lost about 70% of its valuation since his IPO in April in the recent wave that has hit global tech startups. This startup was one of his 11 companies that raised over $500 million in its first stock sale. At the time, GoTo was his third largest IPO startup in Asia, raising around $1.1 billion. For about 10 consecutive sessions, the value of GoTo Group shares has fallen. GoTo Group was born from the merger of two of Indonesia’s leading technology companies.
Gojek and Tokopedia. Initially, the company was valued at $28 billion, but since then the stock has seen him gain 13% and gain momentum. High-profile companies such as Alibaba Group Holding and SoftBank Group pledged to freeze the shares they bought for eight months to protect their share prices during their initial stock sales. Unfortunately, as the planned unlock date of November 30th approached, the stock price fell. Many stock investors are skeptical about investing because large shareholders can sell their shares at any time. Once his fifth largest IPO in the world, he lost more than $22 billion in market capitalization.
According to GoTo, the company had planned a controlled stake sale among its early IPO backers to avoid a price drop. Unfortunately, the plan did not work out as planned and the interested parties rejected their requests for the sale at the agreed time.
His GoTo of a Promising IPO Startup Becomes His Biggest Loser of 2022,
Losing 70% In the first funding round ahead of his IPO in November 2021, GoTo has secured $1.3 billion from participating investors. The funding round was led by the Abu Dhabi Investment Authority through one of its subsidiaries, which invested $400 million in GoTo. Top companies such as US tech giant Google, Chinese multinational tech giant Tencent and Singaporean holding company Temasek also participated.
GoTo as the worst tech IPO startup due to its poor performance since its inception. CS recalled a statement by his CEO and co-founder of GoTo, Andre Soelistyo, about the tech opportunities in Indonesia and Southeast Asia after the funding round ahead of the IPO. Gojek’s former CEO said:
“Indonesia and Southeast Asia are some of the world’s most exciting emerging markets, and the support we have secured will strengthen investor confidence in the region’s rapidly growing digital economy and our market-leading position. It shows.” Shortened due to an ongoing Tech sale.
After the shareholder failed to sell his shares on Wednesday, November 30, 2022, the share price fell by 7% to about $0.0091 (Rs 141). At the time of writing, GoTo shares are trading at around $0.0080 (Rp 123).
Interestingly, his GoTo isn’t the only Asian tech company whose valuation has plummeted since its IPO. Companies such as rivals Grab Holdings Ltd and PT Bukalapak.com are down about 69% and 70% respectively after completing their IPOs. Shares of companies such as Zomato Ltd and SenseTime Group have also fallen.
Currently, GoTo Group’s nine-month cumulative losses have increased from US$750 million (Rp11.58 trillion) in 2021 to US$1.3 billion (Rp20.32 trillion). Nonetheless, cost reductions narrowed the company’s losses in the third quarter of 2022. In November, his largest IPO underperforming company announced the layoff of 12% of GoTo employees.