A Gojek driver checks his mobile phone in Jakarta, Indonesia on Jan. 5, 2021.
Dimas Ardian | Bloomberg | Getty Images
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. The ultimate goal is said to be a potential IPO with an expected public markets valuation target between $35 billion and $40 billion, Bloomberg reported in February.
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 and has a digital payments and financial services business. Sea has a market value of more than $112 billion.
Last month, Grab announced a nearly $40 billion SPAC merger to go public on the Nasdaq.
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. The companies together have more than 100 million monthly active users.
“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.”
Soelistyo said that Gojek drivers will deliver more packages from Tokopedia while the two firms will use their combined scale to focus on increasing financial inclusion in the region.