(Bloomberg) -- GoTo Group raised $150 million through a convertible bond sale to investors led by the World Bank’s International Finance Corp., a bump to its cash reserves as the Indonesian ride-hailing and e-commerce company works toward reaching profitability.
The investment includes $125 million from IFC and $25 million from private investment firm Franke & Co., GoTo said in a statement on Tuesday. Through the pact, GoTo and the investors seek to tackle climate change and ensure more people will benefit from the digital economy.
The debt round, which features a conversion price of 135 rupiah (less than 1 US cent), signals a vote of confidence for Patrick Walujo, who took over as chief executive officer in June. The managing partner of major GoTo-shareholder Northstar Group is tasked with carrying out his predecessor’s campaign to shave losses by cutting jobs, curbing promotional spending and tightening expense controls.
Like rivals Grab Holdings Ltd. and Sea Ltd., GoTo is trying to convince investors it can generate cash after years of rapid growth, despite economic uncertainty and sluggish consumer spending across Southeast Asia. Shares of GoTo fell 1.2% to 84 rupiah in early Jakarta trading.
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