Indonesia’s biggest internet companies- Gojek and Tokopedia are in the process of finalizing their $18 billion merger to create a colossal ecommerce, food delivery, and ride-hailing platform in the country. The two most valuable startups of Indonesia have named this new venture ‘Goto’ and they plan to close the deal by this month since the terms and investor approvals are still pending.
The tech pioneers are backed by common investors including Temasek, Sequoia Capital India, and Google. Tokopedia is also backed by Alibaba. The combined entity as per the company sources could be worth between $35 billion to $40 billion.
Both Gojek and Tokopedia are looking forward to firm up the deal as this would help them in elevating their status as a ride-hailing and ecommerce major in Southeast Asia. Gojek has expanded in countries including Vietnam and Singapore while Tokopedia has over 100 million monthly active users in the country.
This deal is being seen as the biggest yet for the country and could change Indonesia’s landscape in the ecommerce market. Ecommerce in the country has witnessed significant growth as the stay-at-home pandemic restrictions have led to a surge in demand for home deliveries and e-payments.
The top management team of ‘Goto’ will consist of four senior-most executives- two from each company. They include co-CEOs Kevin Aluwi and Andre Soelistyo from Gojek and President Patrick Cao and CEO William Tanuwijaya from Tokopedia according to the company sources. Post-merger the four will together develop the overall strategy of this new venture and will take combined key decisions.
Founded in 2009, Gojek is Indonesia’s mobility and payment platform. The app provides a variety of services from payments, transportation, logistics, and food delivery. It is available in 200 cities across Southeast Asia.
The app can be used to make digital payments and shopping as well. Gojek aims to create a positive socio-economic impact on consumers, business, driving partners, and MSMEs. The startup is backed by an array of investors including Facebook, Paypal, Google, Sequoia Capital India, and Tencent Holdings.
Last year in November Gojek had raised $150 million in funding from Indonesia’s Telkomsel.
Founded in 2009, Tokopedia is an online marketplace that allows individuals and small & medium size businesses to open and maintain their online store easily and free while offering a safer and better online shopping experience to its users.
The startup’s services have enabled millions of individuals, business owners, and MSMEs in the country to sell their products and services across Indonesia.
Tokopedia is backed by various investors including East Ventures, Alibaba Group, CyberAgent Capital, Temasek Holdings, and Sequoia Capital India. The ecommerce unicorn had raised funding in November last year from its new investors Temasek and Google. The platform functions in 98 percent of districts across 17000 plus islands in the country.