GoTo will be Indonesia’s largest Tech firm, after Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia announced their merger plans.
This would effectively give Grab a run for its money, as a formidable competitor.
It was earlier reported that Gojek and Grab were rumored to merge but the plans eventually fell through.
GoTo, would be a multi-billion dollar tech company, that will offer online shopping, courier services, ride-hailing, food delivery and other services. It also plans to list in Indonesia and United States, later in the year.
According to The Edge, GoTo was seeking a pre-IPO funding that could enable it to raise about US$2 billion, followed by public market floats with a potential valuation of roughly US$40 billion for the group.
A joint statement said the companies combined past valuation was US$18 billion based on fundraisings done in 2019 and early 2020.
“GoTo will still need to face stiff competition from larger regional rivals Shopee and Grab, which are leading in market share in both e-commerce and food and which have their dominance in other parts of Southeast Asia to cushion the long term investment commitment into Indonesia,” said Jianggan Li, CEO of venture outfit Momentum Works.