(Bloomberg) -- GoTo Group posted about 53% 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 on a pro-forma basis advanced to 5.2 trillion rupiah ($357 million) in the quarter though March, the ride-hailing and e-commerce operator said Monday in a statement. For the calendar year 2021, the metric rose at about a 44% clip. GoTo’s quarterly adjusted loss before interest, taxes, depreciation and amortization 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. The company raised $1.1 billion in one of the world’s largest initial public offerings for 2022, gaining funds to compete against rivals such as Grab Holdings Ltd. as online services gain steam in Southeast Asia.

GoTo is the largest of a crop of companies seeking to ride the rapid pace of mobile penetration and internet use in Southeast Asia, a region of more than 650 million people. Yet Chief Executive Officer Andre Soelistyo still needs to reassure investors of the company’s earnings potential amid heavy spending to fend off competition and lure more users.

What Bloomberg Intelligence Says

“Cross-selling opportunities between Indonesia’s top ride-booking (Gojek) and online-shopping (Tokopedia) platforms lessens pressure on new-user acquisition and should support long-term sales growth.”

- Nathan Naidu, analyst

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The company is the result of last year’s merger between Indonesia’s two most valuable internet startups -- ride-hailing provider Gojek and e-commerce firm Tokopedia -- to get more firepower against rivals in an increasingly cutthroat market. Over the years, the two amassed a long list of investors, including Google, Tencent Holdings Ltd. and Sequoia Capital India.

GoTo is among Southeast 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 U.S. special purpose acquisition vehicle late last year. GoTo shares have lost about 7% since its IPO, valuing the company at more than $25 billion. Grab, down about 70% since its SPAC merger, has a market capitalization of less than $10 billion.

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