After months of turns and twists, Gojek finally merged with another unicorn, not Grab but fellow Indonesian ecommerce giant Tokopedia.

GoTo, officially announced today, combines the two largest internet unicorns in Indonesia. According to the official release, 1.8 billions transactions took place on both platforms, creating Gross Transaction Value (GTV) of over US$22 billion – or over 2% of Indonesia’s GDP.

An interesting point is how will the new cap table take shape, and who will be the biggest shareholders. We wrote about Gojek’s top 20 shareholders last year, and Tokopedia’s top 10 shareholders this January:

If the two companies use their previous round valuations to determine the split of the shares of the new group, Gojek shareholders will get 60% of the new company, while Tokopedia shareholders 40%.

By this calculation, the new largest shareholders would likely be:

Softbank, Alibaba, GIC, Pacific Century Group, Sequoia and Google

Of course, the Gojek information we had might be dated, as some new investors have joined the ranks since last March. However, we expect the largest shareholders to remain in relative stable positions.

The press release of GoTo included quotes from both Alibaba and Tencent. This is a formidable feat, considering the rival of these two giants in China:

Long road ahead

However, the merger still has not changed the competitive dynamics in Indonesia, with regional giants SEA and Grab squeezing the market shares of both Tokopedia and Gojek.

In Momentum Works Food Delivery in Southeast Asia report published in January 2021, Grab had overtaken Gojek in food delivery in Indonesia in 2020.

Momentum Works Ecommerce in Indonesia report, to be released later this month, suggests that Shopee has overtaken Tokopedia in GMV in Indonesian market. (To request a complimentary copy, email us at hello@mworks.asia).

GoTo will have a tough battle to fight moving forwards, to secure its market share, and ensure that its financial services are worthwhile.

Thanks for reading The Low Down (TLD), the blog by the team at Momentum Works. Got a different perspective or have a burning opinion to share? Let us know at hello@mworks.asia.