Gojek and Tokopedia in talks for merger

The potential merger would place the entity value at 17 billion, more than Grab at 14.3 billion.

By: Tricia Ang | 8 January 2021

Photo credits: Gojek & Tokopedia

Two of Indonesia’s largest tech companies, Gojek and Tokopedia, are in the midst of discussing a merger, as they gear up to confront the region’s biggest tech company, Singapore’s Sea. The talks take place as share-riding provider Gojek’s merger negotiations with Singapore-based competitor Grab fall through.

Gojek is currently valued at $10 billion and Tokopedia, one of Indonesia’s largest e-commerce platforms, at $7 billion, meaning the merger would place the entity to be worth more than Grab, which is currently valued at $14.3 billion.

A dual listing in Indonesia and the U.S. is a possibility, but using a SPAC, or special-purpose acquisition company, for its U.S. listing is another avenue the two are exploring, according to people familiar with the mater. Tokopedia said last month that it had talked to a SPAC as it moves forward with its IPO plans.

Gojek declined and Tokopedia both declined to comment on the potential merger, stated that they would not respond to rumors. The talks were earlier reported by Bloomberg.

Gojek says it has 38 million monthly active users across five Southeast Asian countries, while Tokopedia, which only operates in Indonesia, said it had more than 100 million users in December.

Shares in Singapore’s Sea, the only big Southeast Asian internet company listed in the U.S., skyrocketed more than 400% last year, as interest among investors in the region’s digital market grew rapidly. Investors in Gojek and Grab had hoped an IPO of a merged entity would gather a similar level of interest as it would have given investors a new entry into Southeast Asia’s digital market. The same applies to a potential Gojek-Tokopedia pairing.

Gojek and Tokopedia already share some investors, including Google, Singapore sovereign wealth fund Temasek Holdings and Sequoia Capital India.