Indonesia’s Gojek, Tokopedia to merge as GoTo Group – KIRO 7 Information Seattle

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SINGAPORE – (AP) – Indonesian company Gojek and e-commerce company Tokopedia announced on Monday that they were merging to form the GoTo group.

The companies said the deal was Indonesia’s biggest deal ever, based on historic fundraising rounds for Gojek (2019 price) and Tokopedia (early 2020 price), where the combined valuations of both companies were historically $ 18 billion .

The new company will offer services from ride hail and financial services to e-commerce. GoTo is backed by investors such as Alibaba Group, BackRock, Tencent and Temasek Holdings.

The merger comes a month after Gojek’s biggest rival, Singapore-based Grab Holdings, announced it would be listed in the US via a merger with a special public acquisition company (SPAC) valued at $ 40 billion.

Gojek Co-CEO Andre Soelistyo will lead the new company, while Tokopedia President Patrick Cao will retain his title in the combined company.

“Today is a truly historic day as we mark the start of GoTo and the next phase of growth for Gojek, Tokopedia and GoTo Financial,” said Soelistyo in a statement released on Monday.

He said the company intends to promote financial inclusion while ensuring world-class delivery of goods and services.

The Gojek and Tokopedia merger comes as competition intensifies in Southeast Asia, where tech companies compete for the wallets of over 650 million people.

GoTo’s rival Grab offers hail and on-demand services in eight countries in Southeast Asia, including Singapore, Malaysia, Indonesia and the Philippines, while Internet company Sea Limited has massively promoted e-commerce in Asia with its Shopee e -Commerce- Platform.

Gojek was founded in 2010 by Nadiem Makarim as a call center for motorcycle taxis, known in Indonesia as “Ojek”. Since then, the company has expanded to include not only hail rides, but a variety of on-demand services, including food delivery.

Makarim stepped down as CEO in October 2019 after assuming a ministerial position in the Indonesian government, and Soelistyo was named co-CEO along with Kevin Aluwi.

Tokopedia was founded by William Tanuwijaya in 2009 and has grown into Indonesia’s largest e-commerce company. It was later expanded to include financial services such as digital payments and credit services.

The GoTo Group has over 11 million active users per month. The business comprises 2% of Indonesia’s GDP of over $ 1 trillion.