Two of Indonesia's largest tech startup companies, Gojek and Tokopedia, have merged into a single conglomerate entity, GoTo Group.
Both companies have been discussing the possibility of a merger earlier this year, which has finally come to fruition.
Key Highlights
- GoJek and Tokopedia's merger will form GoTo Group.
- GoTo Group will become one of Southeast Asia's largest technology conglomerates.
- Discussion of the merger started our earlier this year, with both companies finalizing the details with their existing investors.
Why It Matters
- GoTo Group could control a very large part of Indonesia's digital economy, and possibly even bolster Indonesia's GDP further.
- Gojek initially held merger discussions with Grab last year, but the deal fell apart.
- GoTo Group will compete directly with Grab and Sea Group (owners of Shopee)
- GoTo Group's gross transaction volume (GTV) was over $22 billion in 2020, across more than 1.8 billion transactions.
