Indonesia internet start-ups Gojek,Tokopedia announce merger

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Indonesia ride-hailing and payments firm Gojek on Monday announced its merger with e-commerce player Tokopedia to form the GoTo Group.

Without disclosing the value of the transaction, Gojek said the agreement marked the largest business deal in the country. Reuters reported in January that the firms were looking at a $18 billion merger ahead of potential public listing plans.

The new company will be led by Gojek’s Andre Soelistyo as group CEO and Tokopedia’s Patrick Cao will be group president. Kevin Aluwi will remain CEO of Gojek and William Tanuwijaya will continue to lead Tokopedia. Soelistyo will also lead the payments and financial services unit, which will be rebranded as GoTo Financial.

The merger will likely help Gojek and Tokopedia to take on larger, regional rivals such as Singapore-headquartered Grab and internet company Sea, which operates e-commerce platform Shopee.

GoTo Group will combine e-commerce, on-demand and financial services from Gojek and Tokopedia. In 2020, their combined transactions were more than 1.8 billion and their total gross transaction value was over $22 billion.

“Our business model is now even more diverse, stable and sustainable,” Cao, president of the GoTo Group, said in a statement. “We have Gojek’s high volume, high frequency mobility transactions, combined with Tokopedia’s high value, medium frequency e-commerce transactions. GoTo Group will account for more than 2% of GDP in Indonesia.”

The group will be backed by prominent investors who previously invested in Gojek orTokopedia including Alibaba, Tencent, Sequoia Capital India and Singapore state investor Temasek.

This is a breaking news. Please check back for updates.

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