Gojek-Tokopedia: Unicorns Unite?
The highly demanded multi-service and digital payment technology company, Gojek, has been rumored to soon merge its company with the biggest e-commerce company in Indonesia, Tokopedia. Earliest rumors emerged all the way back in 2018, but the news had spread like wildfire after the postponement of the Gojek and Grab merger. If the merge is to happen, it would create a decacorn start-up with a value of almost $20 billion or equal to Rp280 trillion. Gojek has transformed itself from a lone ride-hailing to varying industries such as logistics, a virtual wallet, and food delivery. It has grown significantly especially during this pandemic as they gained a Gross Transaction Value of $12 billion, raising 10% from 2019. Though Shopee has gained most of the customer’s interest in the third quartile of 2020, Tokopedia has proven worthy for the second-ranked e-commerce company by gaining Gross Merchandise Value/GMV of $15 billion, followed by Shopee. The merger of Gojek and Tokopedia has done all the necessary due diligence as they plan to release their IPO in Indonesia and America in 2021.
On Wednesday (1/6), Wilson Cuaca, Managing Partner and Co-founder of East Ventures stated that “It is most likely to happen, they are both Indonesian companies, they have known each other.” he also added that the merger of the two entities could create the super-app in southeast Asia. “End-to-end, from a ride, food, e-commerce, logistics, financial service, I hope there are no monopoly practices because every segment has its competitors”, he also expressed this as he was expecting that the merger could be useful for the people. While Kodrat Wibowo, chairman of Komisi Pengawas Persaingan Usaha (KPPU), also mentioned that the merger could potentially violate the monopoly rules and restrictions. He implied that there is a need for evaluation if the market place would be monopolized. Nevertheless, he sees that other competitors such as Lazada, BliBli, and other e-commerces can still compete equally.
Following the late news, PT Bank Jago Tbk's shares, ARTO, had boosted by 11.79% on Monday (1/4). GoJek had previously acquired 1.956 billion ARTO shares in late December 2020, amounting to a massive 22% of all outstanding shares. This condition aimed to provide digital banking to consumers through its app to open a Bank Jago account and manage their finances effortlessly. Following the major acquisition news back in December, ARTO sprung up that by December 20, in 5 accumulated days of transactions, ARTO had grown 18%, 50% in a month, and rocketed for 330% in 6 months per December 2020. On Tuesday (1/5), ARTO passed 280 points in level 4520 by the end of the first session. In session two, ARTO transactions had reached Rp 26.4 billion, with a volume of 5.8 million shares. Bank Jago's market capitalization currently reaches an enormous 49.8 trillion. On a Year to Date (YTD) basis, Bank Jago's share price increased to 140 percent, while within a week, Bank Jago recorded a 12.7 percent jump in the share price. As one of Southeast Asia's most valuable startups, amounting to an immense $25 billion, this potential merger after an acute competition in ride-hailing, food delivery, and financial technology has brought an immersive impact to the capital market perspective.