Ride-hailing giant Gojek and e-commerce provider PT Tokopedia have merged to form GoTo Group on May 17.
The group, which hosts e-commerce, on-demand and financial services on one platform, is the largest technology group in Indonesia, as well as the first platform in Southeast Asia to combine these three services in one ecosystem.
The agreement between Gojek and Tokopedia marks the largest ever business combination in Indonesia. It is also the largest such merger between two Asia-based Internet and media service companies to date.
Based on historical fundraising rounds for Gojek and Tokopedia, priced in 2019 and early 2020 respectively, the combined past valuation of both companies stood at US$18 billion ($24.0 billion).
The GoTo Group is Indonesia’s largest digital consumer platform, with a comprehensive merchant and partner network that will offer an “unparalleled selection” of goods and services.
The group’s payments and financial services business will also provide convenience to its users and “significantly increase” financial inclusion to underserved segments in Indonesia. Within the country, some 140 million people are said to have little to no access to its financial system.
As at end-2020, the group has a total group gross transaction value (GTV) of over US$22 billion, with over 1.8 billion transactions in 2020.
As at December 2020, the group has a total registered driver fleet of over two million, with over 11 million merchant partners.
It currently has over 100 million monthly active users (MAUs) and an ecosystem that is said to encompass 2% of Indonesia’s GDP.
SEE:Gojek Co-CEO to head app giant after merger with Tokopedia
Indonesia has a GDP of over US$1 trillion and is the fourth most populous country in the world, with a population of over 270 million.
According to a statement put out by the group, GoTo Group will continue to focus on the fast-growing and emerging markets where Gojek already operates.
The group is also a step closer to making same-day e-commerce delivery a possibility.
Gojek and Tokopedia, which were both founded over a decade ago, first worked together in 2015 to accelerate e-commerce deliveries through Gojek’s local network of drivers.
Gojek’s Andre Soelistyo will lead the combined entity as CEO of the GoTo Group, while Tokopedia’s Patrick Cao will become President of the group.
Kevin Aluwi will continue as CEO of Gojek, while William Tanuwijaya will remain the CEO of Tokopedia.
Soelistyo will also lead the group’s payments and financial services under GoTo Financial, which includes GoPay, as well as the GoTo Group’s merchant and financial services offerings.
“Today is a truly historic day as we mark the beginning of GoTo and the next phase of growth for Gojek, Tokopedia and GoTo Financial. Gojek drivers will deliver even more Tokopedia packages, merchant partners of all sizes will benefit from strengthened business solutions and we will use our combined scale to increase financial inclusion in an emerging region with untapped growth potential,” says Soelistyo.
“For the consumer, GoTo Group will continue to reduce frictions and provide best in class delivery of goods and services. This is the next step of an exciting journey and I am humbled and proud to lead the GoTo movement,” he adds.
“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. GoTo Group will account for more than 2% of GDP in Indonesia and we’re going to create a lot more employment and income earning opportunities as our company and the economy expand. We are excited for the next chapter and look forward to our shared pursuit of innovation as a catalyst for inclusive growth,” says Cao.
The deal is backed by major investors including the Alibaba Group, Astra International, BlackRock, Capital Group, DST, Facebook, Google, JD.com, KKR, Northstar, Pacific Century Group, PayPal, Provident, Sequoia Capital India, SoftBank Vision Fund 1, Telkomsel, Temasek, Tencent, Visa and Warburg Pincus.
“We are excited about the opportunities presented by GoTo, which combines Gojek and
Goldman Sachs is acting as the financial advisor to Gojek, while
Citi is acting as the financial advisor to Tokopedia; Allen & Overy LLP is serving as Tokopedia’s legal
