Indonesian unicorns to merge, creating tech giant

18 May, 2021 12:00 AM printer

JAKARTA: Two of Indonesia’s most successful start-ups are to merge, the companies announced on Monday, creating the largest tech firm in the world’s fourth most populous country.

Ride-hailing and payments giant Gojek and e-commerce firm Tokopedia—which generated transactions worth a combined $22 billion in 2020 -- agreed to form the GoTo Group, they said in a statement, reports AFP.

The deal will form an Indonesian tech giant combining e-commerce and financial services with on-demand offerings such as ride-sharing in what will be the first such platform in Southeast Asia.

“The GoTo Group will tap into the huge potential of Southeast Asia’s largest economy with its fast-growing middle class and young, tech-savvy population,” the statement read.

The companies did not disclose the expected value of the new firm, but said the combined past valuation of Gojek and Tokopedia was $18 billion based on historical fundraising.

The combined business of two of Indonesia’s top unicorns—start-ups with a valuation of more than $1 billion—will be led by Gojek’s Andre Soelistyo as GoTo Group CEO and Tokopedia’s Patrick Cao serving as GoTo Group president.

“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,” Soelistyo said in the statement.

“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.”