New merger will create the largest tech company in Indonesia

Gojek, an Indonesian ride-hail and payments company, formally announced its long-rumored merger with online marketplace Tokopedia.

Why it matters: It will become the largest tech company in the world's fourth most populous country.

What's next: The merged company will be called GoTo Group, and plans a dual listing in New York and Jakarta for later this year.

ROI: Gojek raised around $5.5 billion from firms like Sequoia Capital India, Visa, Tencent and Warburg Pincus, while Tokopedia has raised over $2.4 billion from firms like SoftBank Vision Fun, Alibaba and Sequoia Capital India.

The bottom line: Each company knows it's the other's second choice. Gojek held merger talks last year with Grab (which since agreed to a giant SPAC deal), while Tokopedia was in talks to go public via a SPAC sponsored by Thiel Capital and Pacific Century.