Gojek-Tokopedia Merger Will Become GoTo

Illustration of Gojek and Tokopedia will soon merge (doc. Antara)

JAKARTA - The news of the merger between Gojek and Tokopedia is reportedly getting closer to reality. The latest rumors even say that the merger of the two biggest startups in Indonesia will use the name GoTo.

Quoting a report from The Information, Thursday, April 15, the merger process between Gojek and Tokopedia will be completed by the end of this April. Later the results of the Gojek-Tokopedia marriage will have their own management led by four executives from each company.

Executives from GoTo will be filled with executives from each company, including Gojek co-CEO Andre Soelistyo and Kevin Aluwi, as well as Tokopedia CEO William Tanuwijaya and president Patrick Cao. The four of them will share control in making important decisions and developing an overall business strategy.

Although leaked information about the merger has spread widely in the mass line, Gojek and Tokopedia have not released any official information regarding this matter. Moreover, the terms of the merger agreement have been approved and it is only a matter of waiting for the shareholders' approval of the Gojek and Tokopedia IPO plans.

"All terms of the deal have been agreed. This (merger) brings two companies that are not competing with each other to come together," said a source who spoke on condition of anonymity.

On the other hand, the merger of the two will strengthen their position against competitors such as Grab and Shopee. Even Gojek and Tokopedia are said to be creating giant startups that have various businesses ranging from ride-hailing, digital payments, online shopping and shipping, and other services.

Reuters also reported that Gojek and Tokopedia would have a fund valuation of up to US $ 18 billion or around Rp.263 trillion. Fantastic numbers to make the second entity the largest platform in Southeast Asia.

Moreover, both companies have several large investors. For example, Gojek has investors from Warburg Pincus and Tencent Holdings. They also have the same investors, such as Temasek Holdings, Sequoia Capital, and Google.