Photo credit: GoTo Group
GoTo Group has announced that it will deconsolidate its logistics unit associated with Tokopedia in the second quarter of this year. This comes after the Indonesian tech giant completed the ecommerce partnership of TikTok Shop and Tokopedia on January 31.
“We have entered into a conditional sale and purchase agreement to divest ownership of the delivery and fulfillment businesses and the GoTo Logistics that support Tokopedia,” said GoTo CFO Jacky Lo during the company’s Q1 2024 earnings call.
“Upon closing of these transactions, GoTo Logistics will be deconsolidated from the group,” he added.
Following the divestment, the logistics unit will return under Tokopedia. GoTo previously acquired 99.8% shares of Swift Logistics Solutions, Tokopedia’s logistics unit, in January 2023.
Meanwhile, GoTo made sure its B2B delivery business will stay with the group, as well as its on-demand delivery unit GoSend. Therefore, the group has stopped reporting financials from GoTo Logistics as a segment starting from Q1 2024.
This decision marks GoTo’s latest divestiture of a business unit. In August 2023, the company sold its entertainment business GoPlay and Loket – the ticketing platform that operates the group’s GoTix offering – to former executives.
For Q1 2024, GoTo recorded an 89% year-on-year improvement in adjusted EBITDA with an adjusted loss of US$6.2 million. It said it remains on track to hit adjusted EBITDA profitability for the full year of 2024.
Editing by Miguel Cordon and Dhania Putri Sarahtika
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