Indonesia's ride-hailing and payments giant Gojek is in advanced discussions about merging with local e-commerce pioneer PT Tokopedia, Bloomberg said on Tuesday citing people familiar with the matter.
The merged entity would create an Indonesian internet powerhouse with a combined valuation of more than US$18 billion, the report added.
Previously, Gojek was reportedly discussing a merger deal with rival Grab. Reports about the potential merger between homegrown Gojek and Singapore-based Grab have been circulating since SoftBank Group’s Masayoshi Son, a major backer for Grab, visited Indonesia in January. However, neither company released an official statement regarding the matter.
Tokopedia, meanwhile, said on Dec. 16 it was not committed to a merger with a special purpose acquisition company (SPAC) and was evaluating its market options.
“We are considering to accelerate our plan to go public and we appointed Morgan Stanley and Citi to be our advisors,” a Tokopedia spokeswoman said in a statement. “We have not decided yet which market and methods... A SPAC is a potential option”.
Tokopedia received a merger approach from blank-check acquisition firm Bridgetown Holdings Ltd, but had not decided on a deal, a source told Reuters on Dec. 15.
Gojek and Tokopedia, have secured new funding from big companies in November, which might signal investors’ confidence in the country’s digital economy and reflect a maturing start-up ecosystem, The Jakarta Post reported.
Tokopedia has received an undisclosed investment from tech giant Google and Singapore-based Temasek while, Gojek also bagged $150 million in funding from Telkomsel, a subsidiary of Indonesia’s largest telecommunications company Telkom.