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A Gojek driver checks his mobile phone in Jakarta in January. Southeast Asia technology companies Gojek and Tokopedia plan to combine in the biggest merger ever in Indonesia. Photo: Bloomberg

Gojek, Tokopedia to merge in Indonesia’s biggest ever deal at US$18 billion

  • Gojek’s Andre Soelistyo will lead combined business as CEO, with Tokopedia’s Patrick Cao serving as group president
  • Gojek shahreholders to hold 58 per cent of combined entity called GoTo; Alibaba and SoftBank to be major shareholders of GoTo

Tokopedia and Gojek, two of Indonesia’s biggest technology companies, said on Monday that they planned to merge to create a digital leviathan spanning e-commerce, ride-hailing and financial services based in the world‘s fourth most populous country.

Gojek shareholders will hold 58 per cent of the combined group to be known as GoTo. Backed by China’s Alibaba Group Holding and Japan’s Softbank, GoTo will aim to go public later this year, a person familiar with its plans said.

Gojek’s Andre Soelistyo will lead the combined business as GoTo’s CEO, with Tokopedia’s Patrick Cao named GoTo’s president.

The highly-anticipated merger is the biggest ever deal in Indonesia and the largest between two Southeast Asia-based e-commerce companies. Based on historical fundraising rounds for Gojek, priced in 2019 and Tokopedia, priced early last year, the combined valuation of both companies was US$18 billion.


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Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia. In addition to his group responsibility, Soelistyo will continue to lead payments and financial services, under the new brand of GoTo Financial, which encompasses GoPay as well as the group’s merchant and financial services offerings.

Gojek and Tokopedia have been in merger talks for months after plans for Gojek’s combination with Singapore-headquartered ride-hailing app Grab collapsed, people familiar with both sets of negotiations have said.

Grab, Southeast Asia’s most valuable tech unicorn, said in April it would go public in the United States via a merger with a special public acquisition company, better known as a SPAC. That deal valued Grab at about US$39.6 billion.

GoTo would have handled more than 1.8 billion transactions with a total gross transaction value of more than US$22 billion last year. The newly formed group had a registered driver fleet of over two million and over 11 million merchant partners as of December. It also claims to have over 100 million monthly active users.

GoTo will also further develop its payments and financial services offerings to provide an enhanced financial experience to consumers, drivers and merchants while also expanding to reach more underserved segments in Indonesia, where 140 million people have little or no access to the country’s financial system.

The Tokopedia logo atop the company's building in Jakarta. The combined GoTo claims to have more than 100 million monthly average users. Photo: Bloomberg

Gojek and Tokopedia were both founded over a decade ago and have unlocked the benefits of the digital economy for millions of people across Indonesia and Southeast Asia - including consumers, service providers and merchants of all sizes. Despite their scale, both companies remain unprofitable.

The two companies first worked together in 2015 to accelerate e-commerce deliveries using Gojek’s local network of drivers. The companies will continue to thrive and coexist as stand-alone brands within the strengthened ecosystem.

“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,” Soelistyo said in a statement unveiling the merger.

GoTo aims to list in both Jakarta and New York in the future. It is likely to make its public markets debut later this year on at least one exchange, one of the people familiar said.

Gojek and Tokopedia have amassed a combined US$8.1 billion from investors across multiple rounds of fundraising, according to Crunchbase. They have at least three investors in common: Sequoia, Google and Temasek.

After the merger, GoTo’s major investors will include Alibaba and SoftBank Vision Fund 1, according to a person familiar with the matter. Alibaba owns the South China Morning Post.

Other investors will be Astra International, BlackRock, Capital Group, DST, Facebook,, KKR, Northstar, Pacific Century Group, PayPal, Provident, Telkomsel, Temasek, Tencent, Visa and Warburg Pincus.

“With the acceleration of digitisation in Southeast Asia, we see tremendous opportunities in this region,” said Michael Yao, Tokopedia board member and Alibaba senior vice-president.

Goldman Sachs is advising Gojek, while Citigroup is advising Tokopedia.
This article appeared in the South China Morning Post print edition as: Gojek and Tokopedia make history with merger plan