Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia are merging to create a multi-billion dollar tech company called GoTo in the country’s largest-ever deal, as rivals bulk up in the fast-expanding sector.
The combined entity, which will span online shopping, courier services, ride-hailing, food delivery and other services in Southeast Asia’s largest economy, will be the biggest privately held technology firm in the region.
It plans to list in Indonesia and the United States later this year, company executives said on Monday.
Two sources familiar with the matter told Reuters that GoTo was seeking a pre-IPO funding that could enable it to raise about $2 billion followed by public market floats with a potential valuation of roughly $40 billion for the group.
In a joint statement, the companies said their combined past valuation was $18 billion based on fundraisings done in 2019 and early 2020, and declined comment on future valuations.
The merger of Gojek and Tokopedia – each backed by global heavyweight investors – comes amid a surge of competition in the ride-hailing and food delivery markets in Southeast Asia. Stay-at-home pandemic restrictions have stoked demand for food delivery, e-commerce and e-payments.
Last month, Southeast Asia’s largest ridehailing and food delivery firm Grab clinched a $40 billion merger with a special purpose acquisition company and Singapore-based regional internet firm Sea Ltd (SE.N), which runs e-commerce platform…