Indonesia's Gojek and Tokopedia Unite to Form GoTo Group

Indonesia’s leading ride-hailing service, Gojek, and prominent marketplace Tokopedia have officially merged, establishing GoTo Group. This new entity represents the largest technology conglomerate within Indonesia, a nation ranking as the world’s fourth most populous and currently addressing economic challenges stemming from the coronavirus pandemic.

Plans for Public Listing and Leadership

Executives have announced GoTo’s intention to pursue a dual listing on both the New York and Jakarta stock exchanges later this year. Andre Soelistyo of Gojek will assume the role of GoTo Group CEO, while Patrick Cao from Tokopedia will serve as GoTo Group President.

Both Kevin Aluwi and William Tanuwijaya will continue in their current leadership positions as CEOs of Gojek and Tokopedia, respectively, according to a joint statement released by the companies.

A Unique and Complementary Ecosystem

The newly formed organization is described by its founders as “a globally unique and highly complementary ecosystem.” This strategic combination aims to enhance their competitive standing against well-funded rivals such as the super app Grab and the e-commerce platform Shopee.

GoTo executives highlighted the following key metrics of the combined entity:

• A combined Group Gross Transaction Value (GTV) exceeding $22 billion in 2020
• More than 1.8 billion transactions processed in 2020
• A registered driver fleet surpassing two million as of December 2020
• Over 11 million merchant partners as of December 2020
• A substantial user base of over 100 million monthly active users (MAU)
• An ecosystem contributing to approximately 2% of Indonesia’s overall GDP

Deal Origins and Valuation

This agreement follows several months of discussions. Previously, Gojek had explored a potential merger with Grab, while Tokopedia considered a public listing earlier in the year. Talks between Gojek and Tokopedia commenced earlier this year, culminating in investor approval last month.

During negotiations, an estimated valuation of $18 billion was proposed for GoTo. The companies, having collectively raised around $8.2 billion throughout their histories (as per Tracxn research), refrained from commenting on the final valuation or disclosing specific financial details of the deal on Monday.

Founders' Collaboration and Brand Continuity

The established rapport between the founders of Gojek and Tokopedia is believed to have facilitated the completion of this merger. The two companies initially began collaborating in 2015, leveraging Gojek’s driver network to expedite e-commerce deliveries.

The companies affirmed that both Gojek and Tokopedia will maintain their individual brand identities and continue operating as independent entities within the broader GoTo ecosystem.

Grab's Alternative Path

Meanwhile, Grab has announced its plans to become a publicly traded company in the U.S. through a Special Purpose Acquisition Company (SPAC) merger, targeting a valuation of $40 billion. If realized under current terms, this would represent the largest SPAC deal to date.

Looking Ahead

“This day marks a truly historic moment as we begin the GoTo journey and enter a new phase of growth for Gojek, Tokopedia, and GoTo Financial,” stated Andre Soelistyo, CEO of GoTo Group. “Gojek drivers will facilitate more Tokopedia deliveries, and our merchant partners will benefit from enhanced business solutions. We will leverage our combined scale to promote financial inclusion within a developing region brimming with untapped potential. For consumers, GoTo Group will persistently minimize friction and deliver superior goods and services.”

A broad range of investors – including Alibaba Group, Astra International, BlackRock, Capital Group, DST, Facebook, Google, JD.com, KKR, Northstar, Pacific Century Group, Provident, Sequoia Capital India, SoftBank Vision Fund 1, Telkomsel, Temasek, Tencent, Visa, and Warburg Pincus – have provided support for the merger.

William Tanuwijaya, Co-founder and CEO of Tokopedia, added, “The creation of GoTo Group demonstrates that believing in an ‘Indonesian dream’ and turning it into reality is possible. Our objective has always been to build a company that generates significant social impact, creating a level playing field for small businesses and ensuring equal access to goods and services for all consumers. Beyond accelerating the growth of Indonesia’s digital economy, GoTo Group will simplify access to high-quality products and services for individuals from all backgrounds, at any time and from any location. We have a considerable journey ahead, but today signifies the start of that collective endeavor.”