Google, Inc. and Temasek Holdings are pumping around $350 million into Tokopedia, sources with knowledge of the matter say.
The spending will finance the Indonesia online marketplace company's post-COVID growth.
The deal has not been finalized but sources said that the Alphabet Inc. arm and Singapore's state investment company would sign the deal soon. The cash will bankroll the Indonesia online shopping portal which, like most, has seen an increase in buying during the health crisis.
The spending falls short of a preliminary target of between $500 million to $1 billion that Bloomberg News reported in July - although Tokopedia might still seek additional companies to pitch in.
The deal builds on previous support of the leading Indonesia online shopping group - next only to Gojek - by two billionaires: SoftBank founder Masayoshi Son and Alibaba co-founder Jack Ma.
U.S.-based technology companies are concentrating on Asia for growth as they shift from European and U.S. markets.
Tokopedia chief executive and joint founder Officer William Tanuwijaya was the brains behind Indonesia's most successful startup after Gojek by securing early investment from the two investments.
Food, beverages, health and household supplies have been the most in-demand products since March, Tokopedia's external communication senior manager Ekhel Chandra Wijaya, said.
Based on the e-Conomy Southeast Asia 2019 report released by Bain & Co., Temasek and Google, it is estimated that Indonesia's online economy was on course to exceed $130 billion by 2025.
In 2018, SoftBank's Vision Fund and Alibaba Group invested $1.1 billion in Tokopedia. "We see our mission, to make it easier to do business anywhere, reflected in Tokopedia's journey," PYMNTS quoted finance manager Kenny Ho as saying at the time.
