Indonesian tech giants Gojek and Tokopedia today announced that they have combined their businesses to form GoTo Group.
Though the company did not mention the financial details of the merger, in a press statement, they said that the agreement “marks the largest ever business combination in Indonesia and the largest between two Asia-based internet media and services companies to date.”
Following the acquisition, Gojek’s Andre Soelistyo will lead the combined business as GoTo Group CEO, with Tokopedia’s Patrick Cao serving as GoTo Group President.
In addition to his group responsibility, Soelistyo will continue to lead payments and financial services under the new brand of GoTo Financial, which encompasses GoPay as well as the group’s merchant and financial services offerings.
GoTo Group will also continue to focus on markets where Gojek already operates. Beyond Indonesia, this includes Singapore and Vietnam.
“The creation of GoTo Group, with its broad and fast delivery services and its deep penetration, will mean same-day e-commerce delivery moves a step closer to becoming the norm in Indonesia. GoTo will also further develop its payments and financial services offerings to provide an enhanced financial experience to consumers, drivers and merchants while also expanding to reach more underserved segments in Indonesia, where 140 million people have little or no access to the country’s financial system,” the company said.
GoTo Group also claimed in 2020 it has achieved:
– Total Group Gross Transaction Value (GTV) of over US$22 billion
– Over 1.8 billion transactions
– Total registered driver fleet of over two million as of December 2020
– Over 11 million merchant partners as of December 2020
– Over 100 million monthly active users (MAU)
– An ecosystem that encompasses two per cent of Indonesia’s GDP
The company is backed by investors that include Alibaba Group, Astra International, BlackRock, Capital Group, DST, Facebook, Google, JD.com, KKR, Northstar, Pacific Century Group, PayPal, Provident, Sequoia Capital India, SoftBank Vision Fund 1, Telkomsel, Temasek, Tencent, Visa and Warburg Pincus.
Prior to reports about its merger with Tokopedia, Gojek has earlier been reported to consider a merger with rival Grab.
In an interview with e27 in January, Sergei Filippov, Managing Partner of Singapore-based Morphosis Capital Partners, said that the potential merger between Gojek and Tokopedia “holds way more business sense and provides better market value” as compared to a merger with Grab.
“Tokopedia’s ‘paltry’ US$2.8 billion looks way more nimble and leaves enough room for a higher valuation at IPO stage,” he commented.
More on this story as it develops.
Image Credit: GoTo Group
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