Gojek, Tokopedia Merger Pending Investor Approval

Gojek and Tokopedia are joining forces to create Indonesia’s biggest internet firm, Bloomberg reported, citing sources, on Friday (April 9).

The deal is tracking to close in the coming summer months. Terms and investor approval are pending, and shareholders are considering a consent package, sources told Bloomberg. Both startups are looking toward a merger, and shareholder approval is the only thing holding them back, sources told Bloomberg.

Gojek and Tokopedia are seen as tech pioneers. They also have common investors — Google, Temasek, Sequoia Capital India. Tokopedia is also backed by Alibaba.

As Indonesia’s two most valuable startups, Gojek and Tokopedia are looking to solidify a deal that would elevate their status as an eCommerce and ride-hailing mainstay in the Southeast Asian region. Both have discussed a variety of scenarios — including listing the combined entity, which could be worth as much as $40 billion.

Grab Holdings Inc. is set to go public via a merger with Altimeter Capital’s first special purpose acquisition company (SPAC). The deal that could value the Southeast Asian ride-hailing giant at about $40 billion, sources told Bloomberg.

Both Tokopedia and Gojek said in March that they have been moving toward a merger and wanted to list shares on the Indonesia Stock Exchange (IDX). The combined entity could be worth between $35 billion to $40 billion.

The tie-up between the two startups has been a common point of discussion. In early January, talks of a merger were thought to value the firms at $18 billion.

Gojek was looking to expand beyond its current offerings and compete on an international stage.

Founded in 2010, Gojek moved beyond ride-hailing and into food delivery and digital payments. It’s now available in five nations and 200 cities throughout Southeast Asia.