GoTo, the prominent technology company in Indonesia, has refuted claims of ongoing discussions for a merger with its ride-hailing competitor, Grab, based in Singapore.
In a filing on Tuesday, GoTo stated that it is not currently engaged in any talks regarding such matters.
This statement follows a report from Bloomberg on Friday that the two companies have resumed discussions for a potential merger, aiming to mitigate losses caused by fierce competition between them.
GoTo also emphasized its strong financial position and positive adjusted EBITDA target for Q4 2023, exceeding its full-year guidance range. To understand the concept of super apps and why they have not expanded globally, watch our video now.
EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization, is used as an alternative measure of profitability to net income. The company is expected to release its Q4 and full-year 2023 results in March.
On Tuesday, Grab’s stock on Nasdaq dropped by 1.2% amidst a general market downturn in the US. Indonesian markets are closed on Wednesday due to ongoing elections.
According to Bernstein, the GoTo-TikTok deal, formed in May 2021 through a merger between Gojek and Tokopedia, raises concerns for e-commerce in Southeast Asia.
In December, GoTo and TikTok announced that they would combine Tokopedia and TikTok Shop Indonesia, with TikTok taking a controlling stake of 75.01% and investing $1.5 billion over time.
On January 31, GoTo confirmed that Tokopedia had completed the transaction with TikTok, the short video platform owned by ByteDance.
This deal came after Indonesia banned e-commerce transactions on social media platforms, including TikTok Shop and Facebook, in September, dealing a blow to TikTok’s e-commerce plans in the region.
