Tokopedia merges with Gojek to form GoTo Group

Gojek’s Andre Soelistyo will lead the new group.

Indonesia’s largest retailer Tokopedia has merged with the country’s mobile services and payments platform Gojek to form GoTo Group, said to be the biggest business merger between two Asia-based internet media and services companies to date, according to a press release.

Gojek’s Andre Soelistyo will lead the combined business as GoTo Group CEO, with Tokopedia’s Patrick Cao serving as GoTo Group President. Kevin Aluwi will continue as CEO of Gojek and William Tanuwijaya will remain CEO of Tokopedia.

In addition to his Group responsibility, Soelistyo will continue to lead payments and financial services, under the new brand of GoTo Financial, which encompasses GoPay as well as the Group’s merchant and financial services offerings.

The GoTo Group boasts a total group gross transaction value (GTV) of over $22b and over 1.8 billion transactions in 2020. It also has a total registered driver fleet of over two million and over 11 million merchant partners as of December 2020.

It also has over 100 million monthly active users (MAU), and an ecosystem that encompasses 2% of Indonesia’s GDP, the company said.

The GoTo Group said that it will tap into the huge potential of Southeast Asia’s largest economy with its fast-growing middle class and young, tech-savvy population. It will also continue to focus on the fast-growing and emerging markets where Gojek already operates.

“The creation of GoTo Group, with its broad and fast delivery services and its deep penetration, will mean same-day e-commerce delivery moves a step closer to becoming the norm in Indonesia,” the company added.

GoTo also expressed plans to further develop its payments and financial services offerings, while also expanding to reach more underserved segments in Indonesia, noting that 140 million people have little or no access to the country’s financial system.

Goldman Sachs is acting as the financial advisor to Gojek. Davis Polk & Wardwell and Assegaf Hamzah & Partners are serving as its legal advisors. Meanwhile, Citi is acting as the financial advisor to Tokopedia, and Allen & Overy serves as its legal advisor.