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Gojek and Tokopedia are finalizing USD 18 billion fusion to form GoTo, report says

Written by Khamila Mulia Published on     2 mins read

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The deal is expected to close this month, with Gojek taking a 60% stake in GoTo.

Gojek and Tokopedia are in the final phases for a USD 18 billion merger, according to The Information. The two companies will form a combined entity called GoTo, and the deal is expected to close this month, the report says.

The rank of GoTo’s top management will be packed with senior leaders from both firms, including Gojek’s co-CEOs Andre Soelistyo and Kevin Aluwi, as well as Tokopedia CEO William Tanuwijaya and president Patrick Cao. GoTo will provide services spanning rides, e-commerce, food delivery, payments, and logistics—the core businesses of the two platforms. In another report, Gojek is said to hold a 60% stake in the joint entity, with Tokopedia controlling the remaining share.

Rumors of the Gojek-Tokopedia merger have been circulating since the beginning of 2021, shortly after Gojek and Grab’s merger talks fell apart. A union between Grab and Gojek may trigger resistance due to monopolistic practices, some observers warned at the time, while the services of Gojek and Tokopedia appear to complement each other without provoking antitrust inquiries.

For example, Tokopedia would gain access to Gojek’s logistics resources for a more efficient delivery service, while Tokopedia’s merchants may have the opportunity to seek financing from Bank Jago, a digital bank backed by Gojek. A merger will strengthen both companies and put them in a better position against competitors like Grab and Sea’s e-commerce arm, Shopee.

Neither Gojek nor Tokopedia has issued a statement regarding the emergence of GoTo, but both companies have dropped hints of their possible union on multiple occasions. For instance, Tokopedia gives a nod to Gojek in its newest Ramadan commercial, in a scene where Tokopedia’s packages are delivered by Gojek’s fleet.

Gojek and Tokopedia are the two most successful tech-empowered startups in Indonesia, carrying valuations of USD 10.5 billion and USD 7.5 billion, respectively. Gojek has around 2 million driver-partners and 900,000 SME merchants, while Tokopedia claims to have 9.9 million merchants on its marketplace.

Yesterday, Grab announced its SPAC merger with Altimeter Growth Capital The deal will place a USD 39.6 billion valuation on Grab in what is the largest SPAC merger ever. Grab expects its shares to be traded on Nasdaq in the coming months. Besides Grab, other Southeast Asian tech giants like GoTo, Traveloka, and Bukalapak are also eyeing IPOs in the United States this year.

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