You are here: Home » International » News » Companies
Business Standard

Indonesia's Gojek, Tokopedia in advanced $18 billion merger talks: Report

Gojek is now a one-stop shop for a multitude of services whereas Tokopedia is a marketplace which, unlike rivals such as Bukalapak, does not hold its own inventory

Topics
Indonesia | Global M&A | Startups

Anshuman Daga | Reuters  |  SINGAPORE 

Go-jek, gojek
Indonesian ride-hailing firm Gojek | File photo

Indonesian ride-hailing and payment firm Gojek and e-commerce leader Tokopedia are in advanced talks to seal a $18 billion merger ahead of potential stock market listings in Jakarta and the U.S., people with knowledge of the matter said on Tuesday.

The talks come as the decade-old seek profitability by offering a bouquet of services as varied as grocery shopping and hairdressing appointments under a single platform.

The pair have also been benefiting from virus-busting stay-home policies which have stoked demand for food delivery and e-payments in the archipelago's fast-growing e-commerce market.

"An listing for a regional internet group will showcase that Southeast Asia isn't a one-hit wonder. It'll pave the way for global growth and exits for several other high-growth from the region," said Varun Mittal, head of emerging markets fintech business at E&Y.

Common investors in the pair include Temasek Holdings Pte Ltd, Sequoia Capital and Google. Alibaba Group Holding Ltd and SoftBank Group Corp are among Tokopedia's investors, while Gojek's investors include Warburg Pincus LLC and Tencent Holdings Ltd.

Three of the people with direct knowledge of the matter said Gojek and Tokopedia in late December agreed to conduct due diligence of each other's business.

Ride-hailer Gojek is now a one-stop shop for a multitude of services whereas Tokopedia is a marketplace which, unlike rivals such as Bukalapak, does not hold its own inventory.

The founders and some senior executives of Gojek and Tokopedia have been friends for the past decade and are seeking to finalise a deal in the first half of this year, the people said.

"These are amicable conversations between mutually trusted partners. The broad terms are largely agreed," said one person.

Talks between the started in 2018 but did not materialise in a deal, two people said. Negotiations picked up in November after months-long merger talks between Gojek and bigger rival Grab started faltering, they said.

All the sources declined to be identified as the talks were private. Gojek, Tokopedia and Grab declined to comment.

Bloomberg News earlier reported merger talks between Gojek and Tokopedia.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 05 2021. 14:02 IST
RECOMMENDED FOR YOU
.