Recently, according to information from CNBC, the Indonesian technology giant GoTo has denied rumors of a merger with its competitor Grab. It is known that GoTo is the parent company of Gojek. A representative of GoTo stated that the company and Grab have not had any discussions regarding this matter.
A representative of GoTo said to CNBC: “We want to emphasize that the company has a strong platform and financial position.” The company also stated that they have recorded positive adjusted EBITDA in Q4 2023. It is expected that GoTo will announce its Q4 2023 financial results in March.
This statement came after a series of newspapers reported that the two companies have resumed talks on a merger, the largest in the region, after years of losses due to fierce competition between the two giants.
A close source mentioned that the two ride-hailing and food delivery platforms are discussing various merger options for a customer base of over 650 million people. One feasible option is for Singapore’s Grab to acquire GoTo in cash, stock, or a combination of both.
GoTo Group was established in May 2021 in a blockbuster merger between two of Indonesia’s largest startups: Gojek and Tokopedia.
At the end of 2023, GoTo and TikTok announced that Tokopedia and TikTok Shop Indonesia will be combined into an expanded Tokopedia entity, with TikTok holding over 75% of the controlling stake. Over time, TikTok will inject $1.5 billion into this entity. GoTo announced on January 31 that Tokopedia had completed its deal with ByteDance’s short video platform.
This agreement comes after Indonesia banned e-commerce transactions on social media platforms such as TikTok Shop and Facebook. This is a blow to TikTok’s e-commerce ambitions in the region.
