Grab reportedly in talks to acquire GoTo in Q2 deal

Ride-hailing and food delivery platform Grab is reportedly eyeing a deal to acquire Indonesian tech rival GoTo in the second quarter.

The Singapore-based super app has hired advisers to work on the acquisition, which remains subject to financing and ongoing negotiations. One source told The Business Times that Grab is in talks with banks for the potential deal.

If successful, the transaction could value GoTo at around US$7 billion. The Jakarta-listed firm has seen its stock rise 20% year-to-date, bringing its market cap to roughly US$5.8 billion, reported BT. Grab, listed on Nasdaq, currently has a market value of close to US$20 billion, with shares up 2.4% this year.

Don't miss: How the Grab-GoTo merger could impact merchants across Southeast Asia

According to media reports, GoTo plans to offload its international unit entirely. In its home market, the group will reportedly retain its financial services arm while selling off its remaining operations to Grab.

The deal is reportedly still under negotiation and terms may shift. 

When MARKETING-INTERACTIVE reached out, GoTo said "the company has not made any decision regarding any proposals it may have become aware of or received." 

"As we have explained in our previous disclosure on 19 March 2024, no agreement is in place between the company and any party to enter in a transaction of the type that has been speculated on in the mass media," added GoTo, emphasising that the news in the mass media do not have a detrimental effect on the operational activities and business continuity of the company.

MARKETING-INTERACTIVE has also reached out to Grab for comment.

This isn’t the first time of a merger talk between the two Southeast Asian super apps. Reports of a potential tie-up have surfaced multiple times since 2024, often followed by denials or silence from both camps.

Most recently in February this year, GoTo's corporate secretary, R A Koesoemohadiani shut down rumours of a merger in a disclosure document to the Indonesia Stock Exchange (IDX).

"The company affirms that no agreement has been made with any party regarding a merger transaction, as reported in the media," said Koesoemohadiani. 

"There have been no discussions by the company regarding any agreement with Grab," she added. 

This came after shares of GoTo Group fell following management's clarification regarding a potential merger with Grab. According to IDN Financials, the company's shares dropped 5.75% to IDR 82 per share earlier in the month. 

The potential merger between Grab and GoTo has sparked concern among marketers and competition watchdogs, with industry leaders warning of major implications across Southeast Asia.

“Should this merger materialise, there will be deep socio-economic impacts,” David Lim, co-founder of Avante Strategies told MARKETING-INTERACTIVE earlier in February this year.

He added the deal would unlock synergies in Indonesia, particularly by combining Grab’s tech with GoTo’s Tokopedia platform. “GoTo's capabilities... will probably ignite Grab's aspiration to provide a brand-new space for its users,” he said.

However, Nishant Kaushal, CEO of ADNA Research, cautioned that the deal could stifle competition. “This consolidation could lead to narrower consumer choices, potentially resulting in higher prices and stifled innovation,” he said.

Kaushal added that while the merger strengthens Grab’s superapp ambitions, the integration of multiple brands and platforms poses challenges. “The key would be to see how they could preserve and leverage GoTo’s unique and well-established brand identity,” he said.

Merchant visibility and user attention may also be affected, said Kevin Kan, chief experience officer at Break Out Consulting Asia. “How do we get 'airtime'? The potential premium a merchant would have to pay for promotions or pop ups could become quite costly,” he said.

For marketers, the merger offers access to more users and better data, but also risks brand confusion. “Customers value choice. When their options are suddenly reduced, they actively seek alternatives,” Kaushal said.

Related articles:   
GoTo shuts down Grab merger rumours – again  
Grab and GoTo reportedly in talks for potential merger