Gojek and Tokopedia announced today (May 17) that they have combined their businesses to form GoTo group.
Earlier this year, Bloomberg reported that Gojek was in advanced merger talks with Tokopedia, one of the largest e-commerce sites in Indonesia. The combined entity plans to be listed in the United States and Indonesia.
According to a press statement, the agreement “marks the largest ever business combination in Indonesia and the largest between two Asia-based internet media and services companies to date.”
To put the values of the companies in context, Gojek is currently valued at about US$10.5 billion, while Tokopedia is valued at around US$7.5 billion.
The group also claimed to have achieve a Total Group Gross Transaction Value of over US$22 billion in 2020, as well as over 1.8 billion transactions.
Gojek and Tokopedia’s combined ecosystem makes up for two per cent of Indonesia’s Gross Domestic Product. The company is backed by investors that include Alibaba Group, Google, Temasek, Facebook and Paypal.
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.
GoTo Group in a press statement
Following the merger, Gojek’s Andre Soelistyo will lead the combined business as GoTo Group CEO, and Tokopedia’s Patrick Cao will serve as GoTo Group President.
Both Kevin Aluwi and William Tanuwijaya will remain as CEO of Gojek and Tokopedia respectively. The two companies, however, did not mention the financial details of the merger.
Gojek, Grab merger called off
Prior to its merger with Tokopedia, Gojek was reported to be considering a merger with Grab. The merger was, however, called off in January this year.
Sources familiar with the matter told The Business Times that the region’s two largest ride-hailing firms were unable to agree on various issues, including “valuation and corporate culture”.
News of the possible merger also led to public backlash in Indonesia, with Indonesian motorbike driver unions threatening to kick off protests due to fear of major job losses.
Featured Image Credit: Mime Asia / Go Kompas
