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Peter Thiel-Backed SPAC Rallies 20% On Tokopedia Rumors

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Peter Thiel-Backed SPAC Rallies 20% On Tokopedia Rumors

A SPAC launched in October by Peter Thiel and Richard Li is being linked to a merger with Indonesian e-commerce company Tokopedia.

About the SPAC: Billionaires Thiel and Li launched Bridgetown Holdings (NASDAQ:BTWN) to target the southeast Asia region.

Thiel is well-known as the co-founder of Palantir Technologies (NYSE: PLTR) and as one of the early investors in Facebook Inc (NASDAQ: FB). Li is an Asian tycoon with investments in insurance and banking throughout Vietnam, Indonesia and Singapore.

The SPAC is targeting a company in the technology, financial services or media markets. The SPAC raised $550 million in its offering.

Related Link: A Huge Week For Facebook Alums Peter Thiel, Dustin Moskovitz And Justin Rosenstein

About Tokopedia: Bloomberg reported Bridgetown in early talks to acquire Tokopedia, a leading ecommerce company in Indonesia at a valuation of up to $10 billion. Tokopedia is the second most valuable startup in Indonesia, trailing only Gojeck, a ride-hailing and delivery company in the country.

Tokopedia is also the largest shareholder n Ovo, a digital wallet startup in Indonesia, according to DealStreetAsia, which estimates ownership of 41.1%.

Tokopedia invested in Ovo in 2019 and began a partnership with the company back in 2018. Ovo was accepted at over 500,000 merchants as of 2019, compared to rival Go-Pay’s acceptance in 300,000 merchants.

Indonesia E-commerce: Tokopedia competes with Lazarda Group, owned by Alibaba Group Holdings (NYSE: BABA) and Shopee, owned by Sea Limited (NYSE: SE) in Indonesia.

Tokopedia is seeing exponential growth during the pandemic according to local news site Tempo.co. The company has over 100 million active customers searching for 350 million products. Tokopedia serves 98% of the sub-districts in Indonesia.

The company said this is the fastest digital transformation they have ever seen in its 11-year history.

Tokopedia Backers: The company is backed by Softbank. Li is already a minority investor in Tokopedia through companies he owns.

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) unit Google and Temasek are said to have invested $350 million in the company recently.

A report from DealStreetAsia reports Google owns 1.6% of Tokopedia. The company is also said to have held talks with Facebook, Microsoft Corporation (NASDAQ: MSFT) and Amazon.com (NASDAQ: AMZN) over investments and partnerships.

Benzinga’s Take: Indonesia is the largest economy in SE Asia, which could make Tokopedia a compelling investment for Bridgetown.

Jumia Technologies (NYSE: JMIA) and Ozon Holdings (NASDAQ: OZON) are pure-play e-commerce companies for emerging market e-commerce growth of Africa and Russia, respectively.

Tokopedia being a public company would give investors a pure-play way to invest in the growth of Indonesia.

Price Action: Shares of Bridgetown closed up 22.5% to $13.58.

 

Related Articles (BTWN)

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Posted-In: ecommerce Indonesia Peter Thiel Richard LiNews Movers Media Trading Ideas Best of Benzinga

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