Two unicorn startups are rumored to be conducting merger. Through one source, two giant Indonesian technology companies, namely Gojek and Tokopedia, will now merge in the coming months.
Quoting from Bloomberg, Tuesday (5/1/2021), the two companies have signed the terms of the merger. Gojek-Tokopedia is also reportedly heading for an initial public offering (IPO) under the name of a joint company on the Indonesian and United States (US) stock exchanges.
The potential for this merger has indeed been discussed since 2018. This plan is considered to be running more smoothly than the planned merger of Gojek and Grab which failed in 2020.
Gojek-Tokopedia Merger Plan Will Go Smoothly
There are two reasons why Gojek and Tokopedia merger plans are considered to be running smoothly. First, the two companies are funded by the same investors, including Google, Temasek Holdings Pte, and Sequoia Capital India. Thus, getting the approval of investors will be easier.
Second, Gojek and Tokopedia have different services in their business. Unlike Gojek and Grab, both of which are online vehicle ordering platforms. Thus, there are concerns that the plan to merge Gojek and Grab will reduce competition in the business.
Gojek and Tokopedia companies are reported to be worth around $10.5 billion, and US $ 7.5 billion, respectively. With this merger, the joint company valuation Gojek-Tokopedia is predicted to reach more than $18 billion. The planned merger will make the Gojek-Tokopedia joint venture dominate in Indonesia, with a wider range of services.
The merger of these two companies will create many new opportunities for business actors who already exist in their respective ecosystems.
Gojek-Tokopedia’s response to the Merger News
The two companies have no comment regarding the news about the merger. Gojek’s Chief of Corporate Affairs, Nila Marita declined to comment.
“We cannot comment on the rumors and speculation in the market,” said Nila.
Likewise with Tokopedia representatives. According to him, the news of the Gojek merger with Tokopedia was only market speculation.
“We cannot comment on rumors and speculation in the market,” concluded the Tokopedia representative.
