Indonesian two top tech giants, Gojek and Tokopedia, has officially announced their merger into GoTo Group on Monday. The merger involves multi-billion dollars, marking the largest-ever deal in the country. Both companies expect to boost profitability in the long future from the merger.
Gojek and Tokopedia, have global heavyweight investors behind them. Quoted from Reuters, among Tokopedia’s investors include Alibaba Group Holding, Softbank Group Corp and Singapore sovereign wealth fund GIC. Meanwhile, Gojek has Google, Warburg Pincus and Tencent Holdings as some of the top investors.
The joint statement from both companies did not mention the current value of the merged GoTo Group. However, based on the historical fundraising of the companies, the joint past valuation reached $18 billion. This statement is further supported by a source from Reuters saying that the companies were seeing an $18 billion merger.
Beyond Gojek and Tokopedia, what GoTo has to offer
Tokopedia President, which now takes the role of the president of GoTo, Patrick Cao, said, “Our business model is now even more diverse, stable and sustainable. We have Gojek’s high volume, high frequency mobility transactions, combined with Tokopedia’s high value, medium frequency e-commerce transactions”.
The merge between Gojek and Tokopedia will span GoTo’s services from online shopping, courier services, ride-hailing, food delivery and other services in Southeast Asia’s largest economy. According to Reuters, this will mark GoTo as the biggest privately held technology company in Southeast Asia.
The merge between Gojek and Tokopedia came together quickly in December. The idea came soon after the negotiations between Gojek and Singapore-based Grab didn’t end up as expected. Both companies will operate using the model of Alphabet. Thus, Gojek and Tokopedia will remain as two separate entities but still work on payments, logistics and food deliveries together.
Accordingly, GoTo plans to list in Indonesia and the United States later this year.
Read also: Unicorn Merger: Gojek and Tokopedia to Become GoTo
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
