Indonesia ride-hailing and payments firm, Gojek announced its merger with e-commerce player Tokopedia, to form the GoTo Group, to take on rivals like Singapore’s Grab and internet company Sea Ltd (NYSE: SE), which operates an e-commerce platform Shopee and has a digital payments and financial services business, CNBC reports.
The companies target to become an Indonesian powerhouse, including businesses from car-sharing and fintech to online shopping and delivery, Bloomberg reports.
The consolidated valuation was around billion during the merger talks. Gojek and Tokopedia were set to own 58% and 42% of the consolidated entity, respectively.
The companies aim for an initial public offering valuation between $35 billion - $40 billion.
Gojek’s Andre Soelistyo and Tokopedia’s Patrick Cao will serve as the group CEO and Group President. Soelistyo will also lead the payments and financial services unit, which will be rebranded as GoTo Financial.
Kevin Aluwi will remain as Gojek CEO. William Tanuwijaya will continue to lead Tokopedia.
Alibaba Group Holding Ltd (NYSE: BABA), Tencent Holdings Ltd (OTC: TCEHY), Alphabet Inc’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, Sequoia Capital India, and Singapore state investor Temasek will support the group.
GoTo Group will combine e-commerce, on-demand, and financial services from Gojek and Tokopedia.
The combined transactions from both companies were over 1.8 billion in 2020, with the total gross transaction value over $22 billion. Both companies together have over 100 million monthly active users.
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