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Gojek and Tokopedia in advanced talks to form USD 18 billion merger

Author : Pankaj Singh | Published Date : 2021-01-06 

Gojek, an Indonesia-based on-demand multi-service platform and digital payment technology group, is reportedly planning to merge with Tokopedia, a local technology company specializing in e-commerce, before the planned IPO of the combined entity.

As per credible sources, both the firms have signed an agreement to conduct due diligence of each other’s business as they perceive potential synergies and are keen to conclude the deal in the upcoming months. In this context, the combined entity will create an Indonesian powerhouse worth about USD 18 billion, with the valuation of Tokopedia and Gojek appraised at USD 7.5 billion and USD 10.5 billion respectively.

The businesses of the merger will include online shopping, payments, ride-hailing, and delivery, such as the union of DoorDash Inc., Amazon.com Inc., PayPal Holdings Inc., and Uber Technologies Inc. The merged entity also intends to go public in Indonesia and the U.S., sources confirmed.

Since 2018, Tokopedia and Gojek have contemplated a possible merger, but after deal talks between arch-rival Grab Holdings, Inc. and Gojek hit an impasse, the negotiations intensified.

A combined Gojek and Tokopedia will dominate the Indonesian market as their proposed U.S. listing will offer global investors an alternative to Sea Ltd., the only reigning Southeast Asian internet business listed in the U.S.

Moreover, Sea's shares increased by 400% in 2020, fueled by the increasing success of its online shopping and mobile gaming platform, claim sources knowledgeable with the matter.

Sources stated that the combined entity could pick a typical IPO in Indonesia and the U.S. or work with a blank-check firm for the U.S. listing. In recent months, several blank-check businesses have held discussions with the two companies.

If sources are to be believed, the blank-check firm, Bridgetown Holdings Ltd., backed by billionaires Peter Thiel and Richard Li, is exploring a possible merger with the e-commerce giant, Tokopedia.

However, the apparent plans of going public are yet to be finalized by the two Indonesian giants.

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About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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