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Indonesia’s two largest start-ups, Gojek and Tokopedia, have reached a merger agreement that will establish a $18 billion food distribution, ride-hailing and e-commerce group with operations throughout Southeast Asia.
The merged company (will be renamed GoTo) will start Ready to go public People familiar with the matter told the Financial Times. People familiar with the matter said the company’s goal is to have a public market valuation of up to $40 billion.
This transaction will create Southeast Asia’s largest private technology start-up and provide the group with strong strength against well-funded regional competitors, including “Super App” grab And e-commerce platform ShopeeSupported by Japan’s Softbank and China’s Tencent respectively.
As investors in Tokopedia and Gojek, SoftBank and Tencent will also benefit from the merger of GoTo. Other investors supporting the transaction include Alibaba, Facebook, Visa and Google.
The news of the merger provides more evidence for the maturity of the fast-growing technology industry in Southeast Asia. Part of the reason why investors are attracted to enter the region is that the region is less affected by the tension between China and the United States.foreign Investment in IndiaEspecially from China, China has also encountered obstacles.
The merger announcement was made a few weeks ago at Grab, which is headquartered in Singapore and provides delivery, ride-hailing and financial services. Use the blank check tool to record the merge. The transaction valued Grab at $40 billion and will be listed on the Nasdaq this year.
The U.S.-listed stocks of Shopee and the Sea Group, the parent company of the gaming division Garena, Surge Last year it was 395%.
Although Gojek has operations in multiple countries/regions in Southeast Asia, GoTo will have the strongest business in Indonesia, the largest economy in Southeast Asia and the fourth most populous country in the world. The combined entity has more than 100 million monthly active users on its platform, and the group’s total transaction volume will exceed 22 billion U.S. dollars by 2020.
Andre Soelistyo, co-CEO of Gojek, will be headed by Patrick Cao of Tokopedia as president and lead the combined business. Kevin Aluwi, Gojek’s other chief executive officer, will continue to serve as the head of the business, while William Tanuwijaya will continue to serve as Tokopedia’s chief executive officer.
Soelistyo will also lead the financial services industry GoTo Financial.
Cao said: “We have Gojek’s high-traffic, high-frequency mobile transactions, and Tokopedia’s high-value, mid-frequency e-commerce transactions.” “GoTo will account for more than 2% of Indonesia’s GDP, as the company and the economy develop , We will create more employment and income-generating opportunities.”
Sea, Grab, and GoTo may continue to consume cash to compete throughout Southeast Asia, as these three companies are increasingly committed to providing financial services to underfunded people in the region.
Investors said that GoTo’s strength will lie in its influence in various fields.
Sherlanda Singh, managing director of Sequoia Capital India, said: “In the world I know, no modern Internet company has ownership of so many categories at the same time.” The two companies.
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