In conversation with Patrick Cao, President, GoTo
In a landmark transaction in May this year, Indonesia’s on-demand app Gojek and e-commerce company Tokopedia announced a merger to form a holding company – GoTo – with businesses spanning ride-hailing, food delivery, online shopping and payments businesses.
GoTo is said to be seeking a valuation of up to $40 billion for its IPO planned for end-2021, a figure that is similar to Grab’s valuation when it announced its SPAC merger with Altimeter Group.
The GoTo combine that includes ride-hailing, e-commerce vertical, and financial services also enjoys a huge home market advantage. According to Google, Temasek, and Bain & Co’s recent study, Indonesia’s GMV was $44 billion in 2020, almost half of Southeast Asia’s combined market. This is poised to reach $124 billion by 2025. More than 60 million Indonesians will join the ‘consumption class’ — individuals with over $3,500 in annual revenue. Going forward, food delivery and financial services will likely be the most promising businesses for GoTo.
How does the merger change the pecking order for the super app race in Indonesia with the GoTo combine taking on rivals Grab & Sea? How will GoTo manage the integration issues and overlaps in functions? Is GoTo overvalued or does the combination of different ecosystems under one roof add to the attractiveness of the asset? What will GoTo’s narrative be as it prepares its IPO roadmap? How does GoTo see its growth potential outside the home turf?
GoTo president Patrick Cao will share insights on the journey ahead for the merged entity. Cao is responsible for overseeing the finance, corporate development, investor relations and investment activities of GoTo. Previously the President of Tokopedia since 2016, Cao was responsible for the CFO Office, financial technology businesses and global partnerships.
Let’s hear from Patrick Cao as he takes us through the region’s biggest tech merger.