Gojek and Tokopedia Finally Officially Form GoTo Group

Gojek and Tokopedia finally officially announced the formation of the GoTo Group. The formation of the GoTo Group is said to be the largest business collaboration in Indonesia, as well as the largest collaboration between two internet and media service companies in Asia to date.

GoTo itself is said to unite the strengths of Gojek and Tokopedia. So, GoTo combines e-commerce services, goods, and food delivery, transportation, to finance.

Andre Soelistyo from Gojek will lead GoTo as Group CEO, while Patrick Cao from Tokopedia will be President of GoTo. Meanwhile, Kevin Aluwi will continue to serve as CEO of Gojek. Likewise with William Tanuwijaya who is now the CEO of Tokopedia.

In addition to his responsibilities at the group level, Andre will also lead a payment and financial services business called GoTo Financial. GoTo Financial includes GoPay services as well as financial services and business solutions for business partners.

“Today is a very historic day with the formation of the GoTo Group and marks the next phase of growth for Gojek, Tokopedia, and GoTo Financial,” said GoTo CEO, Andre Soelistyo, in an official statement received on Monday (17/5/2021).

Continuing Andre, President of GoTo, Patrik Cao said, the GoTo Group’s business model will be more diverse, stable, and sustainable. This is because they will combine the Gojek and Tokopedia platform transactions.

“Going forward, the GoTo Group will contribute more than 2% to Indonesia’s total GDP and will create more jobs and income opportunities as our business grows and the economy grows,” said Patrick.

Merger Statement Published through Gojek Indonesia Youtube Channel

Previously, information about the joining of Gojek and Tokopedia was finally known from the latest video uploaded on the YouTube channel Gojek Indonesia. From the 1 minute 55-second video, the two startups finally declared that they had joined to become GoTo.

The video opens with a description of Gojek and Tokopedia’s efforts to present solutions and bring goodness to the Indonesian people. From there, the two of them decided to join forces to be able to go further.

“To answer that, we decided to unite to become stronger. With mutual cooperation, the spirit of Indonesia in working together, in order to expand the opportunities for a better life for all people,” said the narrative in the short video.

The joining of Gojek and Tokopedia comes with the name GoTo. “Gojek and Tokopedia present: a power of togetherness. GoTo: Go Far, Go Together,” said the explanation in the video.

However, until now there has been no information about the form of GoTo, the result of this combination of Gojek and Tokopedia. Based on the explanation uploaded in the description column, GoTo is an ecosystem that makes it easy for people to meet their daily needs.

In addition, this ecosystem also encourages more people to participate in the digital economy, so as to accelerate the nation’s economic growth.

“With GoTo, now #PastiAdaJalan for #SelaluBisa can shop with many choices, fast & easy. Through Gojek and Tokopedia,” wrote the description on the video.

The Joint Company Entity to Reach A Valuation of US$ 40 Billion

Based on data from CB Insight, GoTo has the potential to reach a valuation of around US$ 40 billion. The calculation is that the valuation of each company prior to the merger was worth US$ 10 billion.

After the merger, the company targets a higher valuation. “The joint venture is reportedly targeting a valuation of up to US$ 40 billion if it goes public,” said the CB Insight report.

One of the goals of the Gojek-Tokopedia merger is to smooth out plans to seek greater funding on the stock market. That way, Gojek-Tokopedia could have a valuation of around US$ 35 billion – US$ 40 billion.

According to Mackintosh, to convince investors in the capital market with such a valuation, the merger of the two companies is important.

Statista estimates that GoTo’s valuation will reach US$ 17 billion or IDR 242 trillion. GoTo is included in the list of highly-rated technology companies in the world.