GoTo Gojek Tokopedia (GoTo Group), the largest digital ecosystem in Indonesia, has raised US$150 million from the placement of a convertible bond to the International Finance Corporation (IFC) and to US-based private investment firm Franke & Company, marking a partnership to enhance financial inclusion and sustainability across Indonesia.

The investment, the companies say, underscore a shared commitment to ensuring more people can benefit from the digital economy and addressing climate change.

Announced on October 3, the investment includes US$125 million from the IFC and US$25 million from Franke & Company. The proceeds will be received through the issuance of new shares via a non-pre-emptive capital increase and structured private notes to independent entity Bhinneka Holdings (22), which will concurrently issue equity-linked bonds to the IFC and Franke & Company, in the amount of US$150 million.

The equity-linked bonds issued by Bhinneka Holdings are exchangeable into Series A shares of GoTo to be owned by Bhinneka at an exchange price of 135 rupiah (US$0.0087), which represents a premium of 50% to the one-month volume weighted average price of the shares up to and including October 2 – being the last market date prior to the date of announcement. The equity-linked bonds have a coupon of 5% per annum payable semi-annually and will mature in October 2028.

The proceeds received by GoTo from the non-preemptive capital increase, as approved by shareholders at the June annual general meeting, will be used as working capital for the company and its subsidiaries. Citi and Goldman Sachs were the joint placing agents for the transaction.

The IFC’s strategic investment in GoTo reflects a shared vision to enhance access to new opportunities across Indonesia, highlighting GoTo’s position as an environmental, social and governance (ESG) leader in the region and the IFC’s reputation globally as a proponent of ESG practices. The parties will collaborate on driving financial inclusion in Indonesia, where 97 million adults remain unbanked, as well as strengthening and refining GoTo’s ESG execution strategy.

GoTo Group CEO Patrick Walujo says the partnership with IFC will provide additional support for GoTo business as it seeks to improve life for its customers, including consumers, driver-partners and merchants.

The partnership also includes non-financial support to help the company transition its fleet of driver-partners and delivery partners to electric vehicles, improving operational efficiency, and integrating more sustainable business practices to achieve carbon neutrality.

In its approach to the ESG issues most material to the company and ecosystem, GoTo has established the three zeros commitments of zero emissions, zero waste and zero barriers by 2030. Significant progress has been made to-date, including an ongoing electric vehicle trial in South Jakarta, shifting to renewable energy for its direct operations, reduction in excessive packaging and single-use waste from on-demand and e-commerce services, and initiatives to facilitate financial inclusion and sustainable livelihoods for its driver-partners and merchants, among others.

The GoTo ecosystem consists of on-demand services, financial technology and logistics through the Gojek, Tokopedia, GoTo Financial and GoTo Logistics platforms.