GoTo: Gojek and Tokopedia Merger is now official

May 17, 2021 4:53 pm

Gojek and Tokopedia, two of Indonesia's largest internet platform companies, have officially announced their merger. GoTo Group, the new company formed, will become the largest tech company in Indonesia, reports TechCrunch, citing a joint announcement by the two companies.

Detail: Andre Soelistyo, Gojeck's co-CEO, will become GoTo's CEO, while Tokopedia's president Patrick Cao will go on to serve as GoTo's President. The two individual companies will still retain their respective CEOs: Gojeck's Kevin Aluwi, and Tokopedia's William Tanuwijaya.

The combined company boasts big numbers: Over 100 million monthly active users;gross transaction value of over 22 billion US dollars from over 1.8 billion transactions in 2020; over 2 million registered drivers and 11 million merchant partners.

Context: Gojek wanted to merge with Grab, its main rival in the SE Asia market. Grab, however, made a share-swap deal with Uber earlier, and seemed content with its future. 

Gojek is dead set on becoming the designated super app of Indonesia, if not the entire region, encompassing many different services including transport and logistic,s payment, food delivery and shopping, entertainment, etc. And that vision could not be completed without a major e-commerce platform. That's where Tokopedia comes in. 

The combined company is incredible, if you consider that 100 million MAU is basically half of Indonesia's population. (Of course, both companies serve other countries as well, including Singapore, Thailand, Vietnam, etc.)

The two companies have been working on a deal for months. As for ownership, Bloomberg previously reported that Gojek would hold 58% in GoTo as Tokopedia takes the rest.