The Southeast Asian tremendous apps GoTo and Seize have loads in widespread. Each began within the early 2010s to fill a gap within the on-demand, private-hire transport and supply service sector earlier than shifting towards the thought of a brilliant app (very similar to what’s seen in China), later adjusting their methods to streamline choices.
Now, after a decade or so, Seize (No. 128 on the Fortune Southeast Asia 500) has arguably risen to the highest. The agency’s on-demand providers can be found in eight of Southeast Asia’s 11 international locations, whereas GoTo’s on-demand arm, Gojek, is lagging within the sector’s market share and has exited all Southeast Asia markets for on-demand providers save for Singapore and its residence market, Indonesia. However GoTo (No. 266) stays formidable in Indonesia, the area’s largest market—a lot in order that the rumor mill is spinning with discuss of Seize looking for to purchase some, or practically all, of its chief competitor.
Seize has denied experiences of acquisition talks. And even when GoTo had been to conform to promote its on-demand providers to Seize, the deal would doubtless should be cleared by regulators in Singapore and Indonesia. Nonetheless, the actual fact that the subject has drawn a lot consideration alerts a recognition that GoTo has misplaced the on-demand sector battle. As an alternative, the corporate is making an enormous guess on fintech to drive future development.
With “G” names, inexperienced branding, and ride-hailing roots, Seize and GoTo have lengthy been locked in rivalry. Seize’s ascendance to a place during which it could snap up slices of GoTo’s enterprise could be traced again to how the 2 firms diverged from their early days, ultimately resulting in Seize’s regional growth and GoTo’s regional retreat to focus virtually fully on its residence market.
Seize, established in 2012 as MyTeksi in Malaysia, moved shortly to increase into different Southeast Asian international locations: It entered the Philippines, Singapore, and Thailand in 2013, and Vietnam and Indonesia a 12 months later. GoTo, based in 2010 as Gojek in Indonesia, didn’t increase into Vietnam till 2018, coming into Singapore and Thailand the next 12 months.
Nevertheless it made industrial sense for Gojek to entrench itself in its residence turf first, says Daniel Seah, an assistant professor of legislation at Singapore Administration College, whose analysis areas deal with expertise. “The scale of the Indonesia market is the bee’s knees inside Southeast Asia,” he provides. “Over 50% of the inhabitants is underneath 30 years outdated, and it has one of many highest cell and web penetrations inside the area.”
Whereas Seize targeted on “horizontal growth,” involving strategic acquisitions and fintech infrastructure, Seah explains, GoTo targeted on “vertical depth” in Indonesia’s market. Fortune Asia’s government editor Clay Chandler chronicled the battle between the rivals in 2019, with the same discovering: Seize most well-liked partnerships and joint ventures that allowed it to achieve extra markets sooner, whereas Gojek opted for partnerships by means of acquisition that enabled tighter management of its residence market.
Gojek’s then CEO, Nadiem Makarim, believed the super-app mannequin would win in the long term. He shortly expanded its suite of choices, creating a number of different providers like GoMassage, GoClean, and GoGlam. Though Seize additionally created its personal set of providers, it extra shortly pivoted away from them, saving prices at an earlier stage.
“The scale of the Indonesia market is the bee’s knees inside Southeast Asia. Over 50% of the inhabitants is underneath 30 years outdated.”
Daniel Seah, Assistant Professor of Legislation, Singapore Administration College
In 2018, Seize acquired Uber’s Southeast Asia operations, which “strengthened its regional dominance,” Seah says. “This technique consolidated its market share, early consumer acquisition, and cross-border model entrenchment throughout Southeast Asia.”
Etta Rusdiana Putra, an analyst at Maybank Sekuritas Indonesia, says that working with the likes of Uber allowed Seize to achieve experience at a sooner tempo and be taught from the earlier failings of its companions. He additionally pointed to under-the-hood investments: “One of many key elements is concerning the platform itself, which means it’s the price of maps and value per order.”
Seize constructed its personal hyperlocal mapping system, and has been utilizing it since late 2022. It has mentioned on earnings calls the improved effectivity and accuracy have resulted in price financial savings.
In the meantime, Gojek was steadfast in constructing out in Indonesia. It advanced into GoTo in Could 2021, merging with Tokopedia, Indonesia’s main e-commerce firm, to type Indonesia’s largest tech startup.
The rationale was maybe apparent: Collaboration would permit each Gojek and Tokopedia to faucet into their consumer base for GoTo’s personal monetary providers, a enterprise the place margins are increased. However whereas teaming up with an e-commerce enterprise appeared good in concept, exterior elements posed vital challenges.
TikTok entered the e-commerce enterprise in Indonesia in April 2021, altering the panorama. Owned by China’s ByteDance, it’s a behemoth in contrast with GoTo by way of monetary sources, pumping in cash to drive shopper habits towards social commerce. Indonesia shortly grew to become an essential marketplace for TikTok Store, whose success prompted the Indonesian authorities to ban its operations in late 2023 when Jakarta accused TikTok Store of predatory techniques.
Fintech focus: GoTo is prioritizing the event of its monetary arm
$344.8 million
The worth of GoTo’s shopper mortgage ebook for Q1 of 2025
108%
The rise in GoTo’s shopper mortgage ebook from the identical interval final 12 months
Supply: GoTo earnings name
David vs. Goliath competitors apart, there’s additionally the query of whether or not shifting earlier into Singapore, a high-income nation with a small inhabitants, as a substitute of focusing closely on Indonesia, the area’s largest economic system however whose GDP per capita pales compared with Singapore’s, would have helped GoTo.
Final October, Kevin Aluwi, one in every of Gojek’s cofounders and now a enterprise companion at Lightspeed, argued that Singapore is Southeast Asia’s most essential market. He claimed that whereas the city-state had 1% of Southeast Asia’s inhabitants, it contributed 23% of Seize’s income in 2023. The nation had the best focus of what he known as “energy customers,” customers with sufficient earnings to spend on consolation and experiences. Aluwi pointed to information compiled by the World Financial institution: The month-to-month per capita earnings of Singapore residents was $5,957 in 2023 in contrast with $388 in Indonesia.
So whereas Indonesia, with its massive inhabitants and annual common GDP development of 4.2% from 2015 to 2024 represents a gorgeous market, Singapore was arguably a better marketplace for a startup targeted on offering providers requiring frequent shopper spending. Whereas Aluwi was nonetheless optimistic about Southeast Asia’s development potential, he famous it’s a various area made up of particular person economies at various levels of improvement.
The pandemic ended the mid-to late-2010s straightforward enterprise fund cash for tech startups as buyers regarded for extra quick returns on investments and exit methods. GoTo consequently wound down its suite of non-finance and non-mobility-related providers over a three-year interval, permitting it to avoid wasting on incentives.
Its shareholders additionally appointed Patrick Walujo, one in every of Gojek’s early backers, as CEO in 2023. His focus: turning GoTo’s funds round. In its two most up-to-date quarters, the corporate’s on-demand providers turned optimistic on an adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (Ebitda) foundation.
Indonesia’s TikTok Store ban additionally introduced a chance. In early 2024, TikTok resumed its e-commerce operations within the nation after shopping for a 75.01% stake in Tokopedia price $1.5 billion. Analysts Fortune spoke to mentioned the deal enabled Walujo to monetize an expense-heavy platform, permitting GoTo to obtain an e-commerce service price each quarter.
Niko Margaronis, a former analysis analyst at BRI Danareksa Sekuritas, says Walujo additionally made the corporate extra “targeted” after going by means of completely different leaders who emphasised development and valuations. “Beneath Patrick, it’s a really clear distinction of transiting from development towards a cycle of profitability. GoTo has improved considerably and is extra targeted towards environment friendly operations,” he says.
A giant a part of that focus is a pivot to fintech, GoTo’s long-term play no matter whether or not it retains its on-demand providers enterprise or will get purchased out by Seize or one other firm. On an October 2024 earnings name, GoTo began reporting its monetary providers outcomes forward of its on-demand providers enterprise, signposting the place the corporate’s consideration is directed.
GoTo’s shopper mortgage ebook grew to five.72 trillion rupiah ($344.83 million) for the three months ended March 2025, a 108% enhance from the identical interval the 12 months earlier than. Its monetary providers are additionally optimistic on an adjusted Ebitda foundation.
Whereas GoTo’s on-demand providers and monetary providers segments are adjusted Ebitda optimistic, analysts see an extended runway for GoTo’s fintech arm, even when it’s ranging from a decrease base. “Monetary inclusion in Indonesia is comparatively low,” notes Margaronis.
A 2023 ISEAS–Yusof Ishak Institute report estimates that about 80% of Indonesia’s inhabitants is both unbanked or underbanked—precisely the type of market the place a smartphone-friendly fintech supplier can thrive.
To place issues in perspective, Financial institution Mandiri, ranked No. 23 on the Fortune Southeast Asia 500, has about 41.7 million accounts for 35 million clients as of March 2025. Financial institution Central Asia, ranked No. 36, additionally has about 41 million accounts. These massive Indonesian monetary establishments have additionally entered the digital finance area, however GoTo’s benefit is that it’s a tech-first firm not slowed down by legacy banking providers and programs.
GoTo created a stand-alone GoPay app in July 2023, months after Walujo joined. It makes use of much less cell information, making it simpler to entry for these in creating cities outdoors Jakarta utilizing much less highly effective smartphones.
Many companies in Indonesia additionally settle for e-wallet funds, and GoTo’s fee platform is accepted in lots of elements of the nation. The hope, then, is for GoTo to transform these utilizing its e-wallet into banking clients, whether or not they’re drivers; micro, small, or medium e-commerce enterprises; or simply folks shopping for stuff on-line or reserving rides.
GoTo holds a 22% stake in Financial institution Jago, which permits customers to entry banking providers, comparable to financial savings accounts. Common digital banking actions would then permit GoTo to build up information that would increase its current shopper mortgage enterprise and probably allow it to supply different providers like funding and insurance coverage merchandise. Loans is usually a income driver, as fintechs generally cost increased rates of interest to cowl the elevated dangers of lending to folks conventional banks typically don’t lengthen loans to.
The fintech focus additionally comes at a time when GoTo is setting its sights solely on the Indonesian market; GoPay is a for-Indonesia play.
But the fintech guess comes with challenges. Any potential deal involving Gojek continues to be unsure; Walujo informed the Monetary Instances in March he was open to something that enhances shareholder return in the long run.
It’s additionally unclear if any deal will have an effect on operations with TikTok by means of Tokopedia. GoPay is at present out there as a fee choice on TikTok Store, which supplies GoTo consumer information to construct credit score profiles. Dropping entry to that, coupled with the lack of entry to Gojek information, may make buyer acquisition costlier. And the middle-income squeeze in Indonesia amid rising prices and a stagnant job market means folks won’t even have sufficient money to avoid wasting.
So whereas monetary providers could be the calculated long-term guess, the query stays if the Indonesian market is prepared for such a service from a tech startup. And if it isn’t, that would make GoTo much more susceptible to a takeover.
On Could 7, a Reuters report quoting nameless sources mentioned GoTo would unload its complete worldwide unit and operations in Indonesia aside from its fast-growing finance arm. When Fortune reached out for remark, Seize declined to debate any deal-related experiences, and GoTo pointed to a Could 8 submitting on the Indonesia inventory alternate. In it, the corporate’s secretary, R.A. Koesoemohadiani, mentioned GoTo receives gives from numerous events every so often, however had not selected gives that will have been recognized or acquired by the corporate on the date of disclosure. In June, Seize went additional, denying that it had been concerned in acquisition talks associated to GoTo.
As GoTo deal speculations proceed to swirl, one factor is for certain: The Indonesian startup is making ready itself for a slimmed-down fintech future, a sector the place the reward could also be considerably increased than within the ride-hailing area.
This articles seems within the June/July 2025: Asia challenge of Fortune with the headline “A second life for a brilliant app.”
This story was initially featured on Fortune.com
