Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia announced a merger of their businesses on May 17, creating a technology powerhouse called GoTo Group in the country's largest-ever deal, according to Reuters.

Indonesian ride-hailing and payments firm Gojek and e-commerce leader Tokopedia announced a merger of their businesses on May 17. (Photo: Neikei)

The news agency cited sources familiar with the situation as saying earlier that the companies were seeking a 18-billion-USD merger.

Gojek Chief Executive Andre Soelistyo will lead the combined business as GoTo's chief executive officer, while Tokopedia President Patrick Cao will become president of GoTo.

The deal comes as Gojek and Tokopedia – each backed by global heavyweight investors – seek to boost profitability some 10 years after they were founded by marrying their services in one bouquet under a single platform. It also extends growing consolidation among Southeast Asia's fast-moving tech startups.

Alibaba Group Holding, SoftBank Group Corp and Singapore sovereign wealth fund GIC are among Tokopedia's investors, while Gojek's include Google, Warburg Pincus and Tencent Holdings.

Source: VNA