Gojek finalized its acquisition of Tokopedia to form GoTo Group, Indonesia’s biggest technology group. Aside from ride-hailing and food delivery, the combined entity will also offer eCommerce and financial services under the new brand GoTo Financial, which encompasses GoPay and other merchant and financial services.
The merger between the two tech behemoths is the biggest in Indonesia’s history. It is also the largest between two internet platforms based in Asia, according to a press release on Monday (May 17). The deal was backed by major investors including Alibaba, BlackRock, Facebook, Google, JD.com, PayPal and others.
Gojek’s Andre Soelistyo will head the newly combined entity as GoTo Group CEO, and also will continue to lead payments and financial services under the new brand of GoTo Financial. Tokopedia’s Patrick Cao will take on the role of GoTo Group President. Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia.
Soelistyo called the merger “historic” and said it is an opportunity that will benefit drivers, merchants, and consumers using its platform. The combined scale of the two entities will “increase financial inclusion in an emerging region with untapped growth potential.
“Our goal has always been to build a company that creates social impact at scale, leveling the playing field for small businesses and giving consumers equal access to goods and services across the country,” Tanuwijaya said.
He added that the merger will advance Indonesia’s digital economy and facilitate access to goods and services “for people from all walks of life.”
Founded in 2010, Gojek began as a ride-hailing business that branched out into food delivery and digital payments. Tokopedia, founded in 2009, started with a mission to create a digital landscape to facilitate commerce throughout the region.
Both companies have been in merger talks for several months, with plans to list shares on the Indonesia Stock Exchange (IDX). The combined entity was estimated to have a value of as much as $40 billion. Gojek’s shareholders are expected to hold a 60 percent stake in the combined company, and Tokopedia shareholders would own the remainder.