Tokopedia, the e-commerce subsidiary of Indonesian tech giant GoTo Group, has officially concluded its merger with TikTok, signifying the return of TikTok Shop to Indonesia.
First disclosed in December 2023, this deal absorbs TikTok Shop’s Indonesia business into the Tokopedia entity, with the latter now jointly owned by TikTok and GoTo. TikTok will hold a controlling 75% stake and has reaffirmed its commitment to invest over USD 1.5 billion in the merged entity over time, without additional dilution to GoTo.
Under the new arrangement, GoTo will generate revenue from Tokopedia through e-commerce service fees, contingent on the platform’s scale and growth. The joint release did not specify the details of this revenue model. GoTo will also play the role of an “ecosystem partner” to Tokopedia.
The completion of the deal coincides with the announcement of GoTo’s positive adjusted EBITDA for Q4 2023, with full-year 2023 financial results set to be disclosed in March. “As our profitability and cash flow continue to improve, we will optimize our capital usage in line with a newly developed capital allocation plan, which may include a share buyback initiative, subject to regulatory and shareholder approval,” said Patrick Walujo, CEO of GoTo.
While the integration process between Tokopedia and the TikTok app remains ongoing, it is reportedly progressing well and expected to be finalized within the trial period mandated by local authorities, in accordance with prevailing regulations.