Mon, 14 Jun 2021

Indonesia's two tech unicorns announce merger

Xinhua
17 May 2021, 23:44 GMT+10

JAKARTA, May 17 (Xinhua) -- Indonesia's giant ride-hailing company Gojek and e-commerce marketplace Tokopedia announced on Monday their decision to officially merge to create a big technology group in Southeast Asia's largest economy.

Named GoTo, the group could be worth about 18 billion U.S. dollars.

Combining e-commerce, on-demand and financial services, GoTo is the first platform in Southeast Asia to host these three essential use cases in one ecosystem.

"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 and serve as merchant partners of all sizes to benefit from strengthened business solutions, and we will use our combined scale to increase financial inclusion in an emerging region with untapped growth potential," Chief Executive Officer (CEO) of GoTo Group Andre Soelistyo said in a statement issued on Monday.

"For the consumer, GoTo Group will continue to reduce frictions and provide the 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," he added.

Meanwhile, President of GoTo Group Patrick Cao said, "GoTo Group will account for more than 2 percent of the GDP in Indonesia and we're going to create a lot more employment and income earning opportunities as our company and the economy expand. We are excited for the next chapter and look forward to our shared pursuit of innovation as a catalyst for inclusive growth."

According to the media release, in 2020, the group had a Gross Transaction Value (GTV) of more than 22 billion U.S dollars and more than 1.8 billion transactions.

As of December 2020, more than 2 million driver partners and more than 11 million business partners or merchants have been registered in the group.

GoTo has more than 100 million monthly active users and has created an ecosystem that contributes about two percent of the total Indonesian economy, according to the company's statement.

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