Indonesia-based ride hailing service Gojek and e-commerce marketplace Tokopedia merged today to form a diversified group called GoTo.
Previous reports put the combined business’ valuation at $18bn, but GoTo did not confirm this figure. It will seek a dual listing in New York and Jakarta later this year, according to TechCrunch.
Financial terms were not disclosed, but e-commerce groups Alibaba and JD.com, conglomerate Astra International, technology group Alphabet’s Google subsidiary, telecoms firm SoftBank’s Vision Fund 1, payment services providers PayPal and Visa, telecoms group Pacific Century, social media company Facebook, internet company Tencent and Telkomsel, the mobile network subsidiary of telecommunications firm Telkom Indonesia, backed the merger.
BlackRock, Capital Group, DST, KKR, Northstar, Provident, Sequoia Capital India, Temasek and Warburg Pincus also supported the merger.
GoJek began as an app-based on-demand ride hailing service that has since also expanded into adjacent verticals – food, package and grocery delivery – as well as mobile financial services.
The latter will henceforth operate under the GoTo Financial brand, while Gojek and Tokopedia will continue offering their respective services through their existing names.
The company most recently secured $300m from Telkomsel last week that brought GoJek’s total financing to at least $4.8bn.
Tokopedia had secured $3.1bn in total equity funding as of a $300m investment from Google, the internet technology subsidiary of conglomerate Alphabet, in October 2020.
Andre Soelistyo, chief executive of GoTo, said: “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.
“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.
“For the consumer, GoTo Group will continue to reduce frictions and provide best in class delivery of goods and services. This is the next step of an exciting journey and I am humbled and proud to lead the GoTo movement.”
