Gojek, Tokopedia Merge In Joint Company, Create $18-Billion Tech Giant
May 18, 2021

Indonesian ride-hailing and e-commerce giant Gojek and online marketplace Tokopedia, which have been working on a merger for a while, have finally created their previously announced joint new company and are officially merging.

Indonesia’s two biggest startups said in a statement on May 17 that they have combined their businesses to form GoTo Group, the largest technology company in the world’s fourth most populous country.

GoTo will be preparing for a dual listing – in New York and Jakarta – later this year, executives said. Gojek’s co-CEO Andre Soelistyo will lead the combined business as GoTo’s group CEO, with Tokopedia president Patrick Cao serving as GoTo’s group president. Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia as a business unit, the two firms said in a joint announcement.

The combined entity was “a globally unique and highly complementary ecosystem,” the two firms said.

In sheer number, the size of the new business is indeed impressive. The group now has a total registered driver fleet of over two million, more than 11 million merchant partners, over 100 million monthly active users and had more than 1.8 billion transactions in 2020 at a total gross transaction value of over $22 billion.

GoTo represents two per cent of Indonesia’s gross domestic product

This “ecosystem” now encompasses two per cent of Indonesia’s GDP, just six years after the two companies first began working together in 2015 to accelerate e-commerce deliveries using Gojek’s local network of drivers.

GoTo Group now has a proposed valuation of $18 billion.

In the merged business, Gojek drivers will deliver more Tokopedia packages, merchant partners will benefit from strengthened business solutions and a combined scale to increase financial inclusion in an emerging region with untapped growth potential, the statement said.

So far, the two companies have together raised about $8.2 billion over the years. Existing investors backed the merger, the statement said. These investors include globally well-known players in the technology and venture capital industry, namely Alibaba, Astra International, BlackRock, Capital Group, DST Global, Facebook and PayPal, Google, JD.com, KKR, Northstar, Pacific Century Group, Provident, Sequoia Capital India, SoftBank, Telkomsel, Temasek, Tencent, Visa and Warburg Pincus.