Two of Indonesia's most valuable startups are merging to form a new super-app entity, which could be valued as much as $40B. Here are the top-line bullets you need to know.
Ride-hailing and payments giant Gojek and e-commerce company Tokopedia have announced a merger to form GoTo. The shareholders of Gojek will own 58% while Tokopedia’s shareholders will own the remaining 42%. The merged company is reportedly targeting a valuation of up to $40B if it debuts in the public markets.
Who are the parties to the deal?
- Gojek: Valued at $10B, Gojek offers a super-app that operates across industries like ride-hailing, payments, merchant services, and more. The company collaborates with 2M drivers as well as 900,000 small and medium enterprises. It has raised $4.7B in total funding. In November 2020, Gojek raised $150M led by Telkomsel. In March 2021, Gojek made a strategic investment in LinkAja, an Indonesia-based state-backed digital wallet.
- Tokopedia: E-commerce platform Tokopedia was last valued at $7B. The company says it’s onboarded more than 9M merchants and boasts over 100M monthly active users in its platform. It has raised $3.3B in total funding. In October 2020, Tokopedia raised $350M led by Google with participation from Temasek Holdings.
Why does the market matter?
The merger strengthens the companies’ positions in the e-commerce space where:
- The e-commerce market is projected to grow at a CAGR of 22.9% to reach a value of $16.2T by 2027, according to Meticulous Research.
- The Covid-19 pandemic has driven growth in e-commerce and supersized the food delivery market, which is expected to hit $385B by 2030, per CB Insights’ Industry Analyst Consensus.
- This tie-up, which would reportedly form Indonesia’s largest internet company, comes soon after super-app operator Grab announced its record $40B SPAC, highlighting its growth amid the pandemic.
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