GoTo growth tops 50% in first report since US$1 billion IPO

GoTo Group posted about 53 per cent gross revenue growth in its first quarterly report as a public company, accelerating from the 2021 pace and highlighting the rapid expansion of Indonesia's tech and online industries.

Gross revenue advanced to 5.2 trillion rupiah (S$490 million) in the quarter though March, the ride-hailing and e-commerce operator said on Monday in a statement.

For the calendar year 2021, the metric rose at about a 44 per cent clip on a pro-forma basis.

GoTo's quarterly adjusted loss before interest, taxes, depreciation and amortisation widened to 5.4 trillion rupiah.

GoTo is trying to convince investors of its growth prospects even as Russia's invasion of Ukraine, soaring inflation and rising interest rates weigh on the technology industry globally.

It raised US$1.1 billion (S$1.5 billion) in one of the world's largest initial public offerings (IPOs) for this year, gaining funds to compete against rivals like Grab Holdings as online services gain steam in South-east Asia.

GoTo is the largest of a crop of companies seeking to ride the rapid pace of mobile penetration and Internet use in South-east Asia, a region of more than 650 million people.

Yet, chief executive Andre Soelistyo still needs to reassure investors of the company's earnings potential amid heavy spending to fend off competition and lure more users.

The company is the result of last year's merger between Indonesia's two most valuable Internet start-ups - ride-hailing provider Gojek and e-commerce firm Tokopedia - to get more firepower against rivals in an increasingly cut-throat market.

Over the years, the two amassed a long list of investors, including Google, Tencent Holdings and Sequoia Capital India.

GoTo is among South-east Asian consumer-Internet companies that are adding users at a rapid clip but have yet to generate sustainable profit.

The company is enjoying a leadership position in Indonesia, a country of more than 270 million people whose mobile-savvy consumers are shopping on Tokopedia's platform and ordering rides and food via Gojek's app.

That has helped its shares outperform those of Grab, which became a publicly traded company through a merger with a US special purpose acquisition company (Spac) late last year.

GoTo shares have lost about 7 per cent since its IPO, valuing the company at more than US$25 billion.

Grab, down about 70 per cent since its Spac merger, has a market capitalisation of less than US$10 billion.

BLOOMBERG