Will GoTo’s SEA story entice enough investors?

Given its regional ambitions, Gojek understandably raised eyebrows when it sold its Thailand operations earlier this year to the digital arm of budget carrier AirAsia.

Since 2018, Gojek has aggressively tried to make inroads into new Southeast Asian markets. It publicly earmarked four countries as target markets – Vietnam, Thailand, Singapore and the Philippines – before reportedly adding Malaysia, Myanmar, and Cambodia to the list.

The vision, according to Andre Soelistyo, Gojek’s president at the time, was to transform the decacorn from “an Indonesian phenomenon to a regional one.”

However, by the third year of its expansion, Gojek had managed to maintain a presence in only three of the six markets. In July, that number went down to two.

Even prior to its retreat from these markets, Gojek had been dogged by questions about its regional ambitions. Take, for example, its merger with ecommerce giant Tokopedia – a company completely focused on its home turf, with no aspirations to step out.

Now, as the merged entity, GoTo Group, braces for a dual listing, investors will keep a close eye on how the super app will position itself regionally.

The latest twist in Gojek’s regional ride

It’s no secret that Gojek’s journey into new markets has been a bumpy ride.

The company’s efforts to branch out into Malaysia and the Philippines, for example, have met regulatory roadblocks. Meanwhile, even in the markets it has managed to penetrate, the company decided to reverse course on its initial strategy of operating under different brand names.

Just when Southeast Asia expected to see a more unified and centralized approach from Gojek, the company announced its exit from Thailand, a sizeable market with 47 million internet users.

Gojek stresses that the sale of its Thai business was not a sign of regional surrender. Rather, it says the move was intended to help maintain focus on its better-performing overseas markets, namely Vietnam and Singapore. A Gojek spokesperson tells Tech in Asia that the tech major remains committed to establishing a regional presence.

“We continue to see huge potential for growth across Southeast Asia. With the recent resetting of our international priorities, we are in the strongest position to capitalize on this growth, while continuing to operate sustainably and for the long term,” the spokesperson says.

Indonesia first?

The big question is: How will Gojek’s retreat from Thailand affect GoTo’s planned public listing?

Theoretically, a regional company would have a larger total addressable market than a single-market firm. This could lead to loftier valuations and investments for firms with a wider geographical reach. Thus, having a regional presence seems to be crucial for GoTo, at least from a numbers standpoint. This is especially relevant since two of its main competitors – Grab and Shopee – are regional players.

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