Home Internet Gojek and Tokopedia merge to form GoTo Group – TechCrunch

Gojek and Tokopedia merge to form GoTo Group – TechCrunch

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Gojek and Tokopedia merge to form GoTo Group – TechCrunch

Ride-hailing giant Gojek and marketplace Tokopedia, Indonesia’s two most prominent startups, said on Monday they have combined their businesses to form GoTo Group, the largest technology group in the Southeast Asian nation, the fourth most populous country that is currently navigating to contain the economic fallout from the coronavirus pandemic.

Later this year, executives said that GoTo will prepare for a dual listing in New York and Jakarta. Gojek’s Andre Soelistyo will lead the combined business as GoTo Group CEO, with Tokopedia’s Patrick Cao serving as GoTo Group President. Kevin Aluwi will continue as CEO of Gojek, and William Tanuwijaya will remain CEO of Tokopedia, the two firms said in a joint announcement.

The combined entity is “a globally unique and highly complementary ecosystem,” the two firms said as they look to better compete with heavily funded super app Grab and e-commerce platform Shopee. GoTo executives claimed that the combined entity features:

Gojek

  • Total Group Gross Transaction Value (GTV) of over $22 billion in 2020
  • Over 1.8 billion transactions in 2020
  • Entire 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 2% of Indonesia’s GDP

The deal has been in the works for several months after Gojek spent several quarters exploring a merger with Grab. Tokopedia was in talks late last year to pursue a public listing this year. Gojek and Tokopedia began talking earlier this year and moved to seek approval from their respective investors the previous month. During their talks, the proposed valuation of GoTo was $18 billion.

The companies, which have raised about $8.2 billion over the years (according to research firm Tracxn), didn’t comment on the final valuation Monday, nor did they disclose any other financial terms of the deal.

The friendship of Gojek and Tokopedia founders may have helped close this deal. The two companies began working together in 2015 to accelerate e-commerce deliveries using Gojek’s local network of drivers.

“The companies will continue to thrive and coexist as stand-alone brands within the strengthened ecosystem,” they said Monday.

In the meantime, Grab has since announced plans to go public in the U.S. via SPAC and is seeking a valuation of $40 billion, which would be the biggest-ever deal of its kind if it materializes at the current terms. Today is truly historical as we mark the beginning of GoTo and the next growth phase for Gojek, Tokopedia, and GoTo Financial.

GoTo Group will continue to reduce friction and provide the consumer with best-in-class delivery of goods and services. Gojek drivers will deliver even more Tokopedia packages; merchant partners of all sizes benefit from strengthened business solutions and use our combined scale to increase financial inclusion in an emerging region with untapped growth potential. This is the next step of an exciting journey, and I am humbled and proud to lead the GoTo movement,” said Andre Soelistyo, CEO of GoTo Group, in a statement.

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