Indonesian hail and payments company Gojek and e-commerce leader Tokopedia announced a merger on Monday (May 17) to create a technology powerhouse for the country’s largest business.
Sources familiar with the situation had previously said the companies are targeting a $ 18 billion (S $ 24 billion) merger. Neither company confirmed a rating for the merged group called GoTo.
The deal comes about as Gojek and Tokopedia, about 10 years after their inception, are looking to increase profitability by offering a bouquet of services on a single platform, thus expanding a regional trend.
ALSO READ: Gojek, Tokopedia Aims for $ 23 Billion Merger in First Half of 2021: Sources
Alibaba Group Holding and SoftBank Group Corp are among the investors in Tokopedia, while Gojeks include Warburg Pincus and Tencent Holdings.
Last month, Southeast Asia’s largest hail and food delivery company, Grab, completed a $ 40 billion merger with a special-purpose acquisition company. Singapore-based regional internet company Sea Ltd, which operates the Shopee e-commerce platform, also provides food and financial services delivery.
