Now, after a decade or so, Grab (No. 128 on the Fortune Southeast Asia 500<\/a>) has arguably risen to the top. The firm\u2019s on-demand services are available in eight of Southeast Asia\u2019s 11 countries, while GoTo\u2019s on-demand arm, Gojek, is lagging in the sector\u2019s market share and has exited all Southeast Asia markets for on-demand services save for Singapore and its home market, Indonesia. But GoTo (No. 266) remains formidable in Indonesia, the region\u2019s largest market\u2014so much so that the rumor mill is spinning<\/a> with talk of Grab seeking to buy some, or nearly all, of its chief competitor.<\/p>\n Grab has denied reports of acquisition talks. And even if GoTo were to agree to sell its on-demand services to Grab, the deal would likely need to be cleared by regulators in Singapore and Indonesia. Still, the very fact that the topic has drawn so much attention signals a recognition that GoTo has lost the on-demand sector battle. Instead, the company is making a big bet on fintech to drive future growth.<\/p>\n With “G” names, green branding, and ride-hailing roots, Grab and GoTo have long been locked in rivalry. Grab\u2019s ascendance to a position in which it can snap up slices of GoTo\u2019s business can be traced back to how the two companies diverged from their early days, eventually leading to Grab\u2019s regional expansion and GoTo\u2019s regional retreat to focus almost entirely on its home market.<\/p>\n Grab, established in 2012 as MyTeksi in Malaysia, moved quickly to expand into other Southeast Asian countries: It entered the Philippines, Singapore, and Thailand in 2013, and Vietnam and Indonesia a year later. GoTo, founded in 2010 as Gojek in Indonesia, didn\u2019t expand into Vietnam until 2018, entering Singapore and Thailand the following year.<\/p>\n But it made commercial sense for Gojek to entrench itself in its home turf first, says Daniel Seah, an assistant professor of law at Singapore Management University, whose research areas focus on technology. \u201cThe size of the Indonesia market is the bee\u2019s knees within Southeast Asia,\u201d he adds. \u201cOver 50% of the population is under 30 years old, and it has one of the highest mobile and internet penetrations within the region.\u201d<\/p>\n Whereas Grab focused on \u201chorizontal expansion,\u201d involving strategic acquisitions and fintech infrastructure, Seah explains, GoTo focused on \u201cvertical depth\u201d in Indonesia\u2019s market. Fortune<\/em> Asia\u2019s executive editor Clay Chandler chronicled<\/a> the battle between the rivals in 2019, with a similar finding: Grab preferred partnerships and joint ventures that allowed it to reach more markets faster, while Gojek opted for partnerships through acquisition that enabled tighter control of its home market.<\/p>\n Gojek\u2019s then CEO, Nadiem Makarim, believed the super-app model would win in the long run. He quickly expanded its suite of offerings, creating several other services like GoMassage, GoClean, and GoGlam. Although Grab also created its own set of services, it more quickly pivoted away from them, saving costs at an earlier stage.<\/p>\n “The size of the Indonesia market is the bee’s knees within Southeast Asia. Over 50% of the population is under 30 years old.”<\/p>\n Daniel Seah, Assistant Professor of Law, Singapore Management University<\/cite><\/p><\/blockquote>\n<\/figure>\n In 2018, Grab acquired Uber\u2019s Southeast Asia operations, which \u201cstrengthened its regional dominance,\u201d Seah says. \u201cThis strategy consolidated its market share, early user acquisition, and cross-border brand entrenchment across Southeast Asia.”<\/p>\n Etta Rusdiana Putra, an analyst at Maybank Sekuritas Indonesia, says that working with the likes of Uber allowed Grab to gain expertise at a faster pace and learn from the previous failings of its partners. He also pointed to under-the-hood investments: \u201cOne of the key aspects is about the platform itself, meaning it\u2019s the cost of maps and cost per order.”<\/p>\n Grab built its own hyperlocal mapping system, and has been using it since late 2022. It has said on earnings calls the improved efficiency and accuracy have resulted in cost savings.<\/p>\n Meanwhile, Gojek was steadfast in building out in Indonesia. It evolved<\/a> into GoTo in May 2021, merging with Tokopedia, Indonesia\u2019s leading e-commerce company, to form Indonesia\u2019s biggest tech startup.<\/p>\n The rationale was perhaps obvious: Collaboration would allow both Gojek and Tokopedia to tap into their user base for GoTo\u2019s own financial services, a business where margins are higher. But while teaming up with an e-commerce venture seemed good in theory, external factors posed significant challenges.<\/p>\n TikTok entered the e-commerce business in Indonesia in April 2021, changing the landscape. Owned by China\u2019s ByteDance, it\u2019s a behemoth compared with GoTo in terms of financial resources, pumping in money to drive consumer habits toward social commerce. Indonesia quickly became an important market for TikTok Shop, whose success prompted the Indonesian government to ban<\/a> its operations in late 2023 when Jakarta accused TikTok Shop of predatory tactics.<\/p>\n The value of GoTo’s consumer loan book for Q1 of 2025<\/strong><\/p>\n The increase in GoTo’s consumer loan book from the same period last year<\/strong><\/p>\n Source: GoTo earnings call<\/em><\/p>\n David vs. Goliath competition aside, there\u2019s also the question of whether moving earlier into Singapore, a high-income country with a small population, instead of focusing heavily on Indonesia, the region\u2019s largest economy but whose GDP per capita pales in comparison with Singapore\u2019s, would have helped GoTo.<\/p>\n Last October, Kevin Aluwi, one of Gojek\u2019s cofounders and now a venture partner at Lightspeed, argued<\/a> that Singapore is Southeast Asia\u2019s most important market. He claimed that while the city-state had 1% of Southeast Asia\u2019s population, it contributed 23% of Grab\u2019s revenue in 2023. The country had the highest concentration of what he called \u201cpower users,\u201d consumers with enough income to spend on comfort and experiences. Aluwi pointed to data compiled by the World Bank: The monthly per capita income of Singapore residents was $5,957 in 2023 compared with $388 in Indonesia.<\/p>\n So while Indonesia, with its large population and annual average GDP growth of 4.2% from 2015 to 2024 represents an attractive market, Singapore was arguably an easier market for a startup focused on providing services requiring frequent consumer spending. While Aluwi was still optimistic about Southeast Asia\u2019s growth potential, he noted it\u2019s a diverse region made up of individual economies at varying stages of development.<\/p>\n The pandemic ended the mid-to late-2010s easy venture fund money for tech startups as investors looked for more immediate returns on investments and exit strategies. GoTo consequently wound down its suite of non-finance and non-mobility-related services over a three-year period, allowing it to save on incentives.<\/p>\n Its shareholders also appointed Patrick Walujo, one of Gojek\u2019s early backers, as CEO in 2023. His focus: turning GoTo\u2019s finances around. In its two most recent quarters, the company\u2019s on-demand services turned positive on an adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) basis.<\/p>\n Indonesia\u2019s TikTok Shop ban also presented an opportunity. In early 2024, TikTok resumed its e-commerce operations in the country after buying a 75.01% stake in Tokopedia worth<\/a> $1.5 billion. Analysts Fortune<\/em> spoke to said the deal enabled Walujo to monetize an expense-heavy platform, allowing GoTo to receive an e-commerce service fee every quarter.<\/p>\n Niko Margaronis, a former research analyst at BRI Danareksa Sekuritas, says Walujo also made the company more \u201cfocused\u201d after going through different leaders who emphasized growth and valuations. \u201cUnder Patrick, it\u2019s a very clear distinction of transiting from growth toward a cycle of profitability. GoTo has improved significantly and is more focused toward efficient operations,\u201d he says.<\/p>\n A big part of that focus is a pivot to fintech, GoTo\u2019s long-term play regardless of whether it retains its on-demand services business or gets bought out by Grab or another company. On an October 2024 earnings call, GoTo started reporting its financial services results ahead of its on-demand services business, signposting where the company\u2019s attention is directed.<\/p>\n GoTo\u2019s consumer loan book grew to 5.72 trillion rupiah ($344.83 million) for the three months ended March 2025, a 108% increase from the same period the year before. Its financial services are also positive on an adjusted Ebitda basis.<\/p>\n While GoTo\u2019s on-demand services and financial services segments are adjusted Ebitda positive, analysts see a longer runway for GoTo\u2019s fintech arm, even if it\u2019s starting from a lower base. \u201cFinancial inclusion in Indonesia is relatively low,\u201d notes Margaronis.<\/p>\n A 2023 ISEAS\u2013Yusof Ishak Institute report estimates<\/a> that about 80% of Indonesia\u2019s population is either unbanked or underbanked\u2014exactly the kind of market where a smartphone-friendly fintech provider can thrive.<\/p>\n To put things in perspective, Bank Mandiri, ranked No. 23 on the Fortune Southeast Asia 500, has<\/a> about 41.7 million accounts for 35 million customers as of March 2025. Bank Central Asia, ranked No. 36, also has<\/a> about 41 million accounts. These large Indonesian financial institutions have also entered the digital finance space, but GoTo\u2019s advantage is that it\u2019s a tech-first company not bogged down by legacy banking services and systems.<\/p>\n GoTo created a stand-alone GoPay app in July 2023, months after Walujo joined. It uses less mobile data, making it easier to access for those in developing cities outside Jakarta using less powerful smartphones.<\/p>\n Many businesses in Indonesia also accept e-wallet payments, and GoTo\u2019s payment platform is accepted in many parts of the country. The hope, then, is for GoTo to convert those using its e-wallet into banking customers, whether they are drivers; micro, small, or medium e-commerce enterprises; or just people buying stuff online or booking rides.<\/p>\n GoTo holds a 22% stake in Bank Jago, which allows users to access banking services, such as savings accounts. Regular digital banking activities would then allow GoTo to accumulate data that could augment its existing consumer loan business and possibly enable it to provide other services like investment and insurance products. Loans can be a revenue driver, as fintechs sometimes charge higher interest rates to cover the increased risks of lending to people traditional banks often don\u2019t extend loans to.<\/p>\n The fintech focus also comes at a time when GoTo is setting its sights solely on the Indonesian market; GoPay is a for-Indonesia play.<\/p>\n Yet the fintech bet comes with challenges. Any potential deal involving Gojek is still uncertain; Walujo told<\/a> the Financial<\/em> Times<\/em> in March he was open to anything that enhances shareholder return in the long term.<\/p>\n It\u2019s also unclear if any deal will affect operations with TikTok through Tokopedia. GoPay is currently available as a payment option on TikTok Shop, which gives GoTo user data to build credit profiles. Losing access to that, coupled with the loss of access to Gojek data, could make customer acquisition more expensive. And the middle-income squeeze in Indonesia amid rising costs and a stagnant job market means people might not even have enough cash to save.<\/p>\n So while financial services may be the calculated long-term bet, the question remains if the Indonesian market is ready for such a service from a tech startup. And if it isn\u2019t, that could make GoTo even more vulnerable to a takeover.<\/p>\n
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Fintech focus: GoTo is prioritizing the development of its financial arm<\/h2>\n
$344.8 million<\/h2>\n
108%<\/h2>\n
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