E-commerce platform JD.com is in talks to invest in Indonesia's Tokopedia, one of Indonesia's largest online platforms, Bloomberg News reported on Tuesday, citing sources close to the matter.
The investment could be worth "hundreds of millions of dollars," it said, with negotiations still at an "early stage." The deal may drive the market value of Tokopedia to more than $1 billion, another source told Bloomberg.
The move marks JD's accelerated expansion into Southeast Asia, where mobile usage is gaining momentum and the middle class is rising, said industry website techinasia.
JD's competitor Alibaba purchased a majority stake in Southeast Asian e-commerce company Lazada Group SA last year.
The Indonesian e-commerce market sits at $8 billion and is expected to reach $65 billion by 2020, Bloomberg said, citing a report from Macquarie Research.
