Indonesia’s two largest start-ups, Gojek and Tokopedia, have agreed to merge to create a $ 18 billion food delivery, ride-hailing and e-commerce group that spans Southeast Asia.
The merged company to be renamed to GoTo begins Preparation for listing In Indonesia, and potentially in the United States this year, plan-savvy people told the Financial Times. People said it would target a public market valuation of up to $ 40 billion.
The deal creates the largest private technology start-up in Southeast Asia and gives the group additional firepower for its well-funded regional rivals. “SuperApp” grab And e-commerce platform Shopee, Supported by Softbank in Japan and Tencent in China, respectively.
SoftBank and Tencent are also in a position to benefit from the GoTo merger as investors in Tokopedia and Gojek respectively. Other investors who supported the deal include Alibaba, Facebook, Visa and Google.
The news of the merger provided more evidence of how the fast-growing technology industry in Southeast Asia is maturing. Investors are attracted to the region, partly because of the lesser impact of tensions between the United States and China.Foreigner Investing in IndiaEspecially from China, we are facing obstacles.
The merger was announced a few weeks after the announcement by Singapore-based Grab, which provides delivery, ride-hailing and financial services. Record a merger with a blank check vehicle.. The deal valued Grab $ 40 billion and will be listed on the Nasdaq this year.
US-listed stock of Sea Group, Shopee’s parent company and Garena in the gaming division Soaring Last year it was 395 percent.
While Gojek operates in several countries in Southeast Asia, GoTo has the strongest presence in Indonesia, Southeast Asia’s largest economy and the fourth most populous country in the world. The integrated entity counts over 100 million monthly active users on its platform and the Group’s total transaction value in 2020 will exceed $ 22 billion.
Andre Soeristyo, Co-Chief Executive Officer of Gojek, will lead the integration business with Patrick Cao of Tokopedia as president. Kevin Aluwi, Gojek’s other co-CEO, will continue to be responsible for the business, and William Tanuwijaya will continue to be Tokopedia’s CEO.
Soelistyo will also lead the financial services business GoTo Financial.
“It combines Gojek’s high volume of high-frequency mobility transactions with Tokopedia’s high-value, medium-frequency e-commerce transactions,” says Cao. “GoTo will account for more than 2% of Indonesia’s gross domestic product, and as our company and economy grow, we will create more employment and income opportunities.”
Sea, Grab and GoTo may continue to spend cash to compete across Southeast Asia. All three companies are increasingly focusing on providing financial services to the bank-deficient people in the region.
Investors said GoTo’s strength lies in its reach across different sectors.
Shailendra Singh, Managing Director of Sequoia Capital India, said: Both companies.
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Indonesia’s Gojek and Tokopedia strike $18bn merger Source link Indonesia’s Gojek and Tokopedia strike $18bn merger