Indonesia’s ride-hailing and payments giant Gojek is in advanced discussions about merging with local e-commerce pioneer PT Tokopedia, ahead of a planned initial public offering of the combined entity, according to people with knowledge of the matter.
The country’s two most valuable startups have signed a detailed term sheet to conduct due diligence of each other’s business, said the people, who asked not to be named as the discussions are private. Both sides see potential synergies and are keen to close the deal as soon as possible in coming months, they said.
The merged entity would create an Indonesian internet powerhouse with a combined valuation of more than US$18 billion ($23.7 billion). Its businesses range from ride-hailing and payments to online shopping and delivery -- a local mashup of Uber Technologies Inc., PayPal Holdings Inc., Amazon.com Inc., and DoorDash Inc. It plans to go public in the US and Indonesia.