XINYU CHEN

2702757350 | Binus Business School

1. Introduction 

PT GoTo Gojek Tokopedia Tbk(GoTo) is the largest digital ecosystem in Indonesia. GoTo’s mission is to ’empower progress’ by offering technology infrastructure and solutions that help everyone to access and thrive in the digital economy.The GoTo ecosystem provides a wide range of services, including mobility, delivery, payments, financial services, and technology solutions for merchants. The ecosystem also provides e-commerce services through Tokopedia and banking services through its partnership with Bank Jago. 

GOTO was listed on the Main Board of the Indonesia Stock Exchange (IDX) on April 11, 2022, trading under the ticker symbol GOTO. This IPO marked the largest in terms of investor participation in the history of the Indonesia Stock Exchange, with approximately 300,000 investors participating. It was also the third-largest IPO in Asia and the fifth-largest globally in 2022, with a market capitalization of approximately $28 billion at the time of listing. 

The offering price was set at 338 Indonesian rupiah per share. A total of 46.7 billion Series A shares were issued in this IPO, raising approximately $1.1 billion, with net proceeds of approximately 13.7 trillion Indonesian rupiah. After the market opened, the stock price rose as much as 23%, briefly pushing the market capitalization above $30 billion.

2. IPO analysis 

2.1 IPO Objectives and Proceeds 

The core objectives of GOTO’s IPO are centered on the company’s long-term development strategy, focusing on three key areas, ecosystem integration, business expansion, and sustainable operations. The primary goal of this IPO is to replenish working capital for the company and its subsidiaries, ensure the continuous operation of daily business activities, and provide sufficient financial support for the stable operation of the three core business segments,mobility, e-commerce, and fin tech,in order to effectively address market volatility and meet liquidity needs arising from business development. Building on this foundation, the company aims to drive ecosystem synergy and deep integration among its three major business segments ‘Gojek, Tokopedia, and GoTo Financial’ continuously increasing cross-penetration across business lines. This will further strengthen the ecosystem advantages of the “Mobility + E-commerce + Finance” super-app, thereby enhancing the usage rates and user retention of platform services among users, merchants, and driver partners.  

At the same time, the funds raised through the IPO will support business expansion and technological R&D. On one hand, this will enable the company to continue expanding its coverage within the Indonesian domestic market. On the other hand, it will facilitate the steady advancement of its presence in overseas markets such as Singapore and Vietnam. Concurrently, increased investment in technology will be made to continuously optimize product and service experiences, thereby consolidating the company’s leading position within the industry. Furthermore, this IPO will prioritize the development of fin tech operations, focusing on core areas such as digital payments GoPay and consumer credit to expand profit growth opportunities, enhance the financial services ecosystem, and boost the competitiveness of the financial segment. At the same time, the listing will enhance the company’s market visibility and brand influence, improve corporate governance structures, and standardize operational management, laying a solid foundation for future financing and business expansion. This will enable employees, merchants, drivers, and other stakeholders within the company’s ecosystem to share in the benefits of the IPO, while also covering the issuance costs associated with this offering and meeting general corporate operational needs, thereby ensuring the steady advancement of the company’s overall strategy. 

The total amount of funds raised through this IPO and the specific details are disclosed in the company’s prospectus and listing announcement, the overall fundraising amount ranks among the highest in the industry. The offering price for this IPO has been set at 338 Indonesian rupiah per share, which is in the upper-middle range of the 316–346 Indonesian rupiah per share price range disclosed in the prospectus. This corresponds to a company valuation of approximately $28 billion at the time of listing, A total of 46.7 billion Series A shares were issued in this IPO, comprising both newly issued shares and treasury shares reserved for over-allotment, representing a certain percentage of the company’s total share capital. It also marks the IPO with the highest number of participants in the history of the Indonesia Stock Exchange, with approximately 300,000 investors participating. In terms of fundraising scale, the total proceeds from this IPO amounted to approximately $1.1 billion, equivalent to 15.8 trillion Indonesian rupiah. Based on total proceeds, this IPO ranks as the third-largest in Asia and the fifth-largest globally in 2022, and represents a landmark listing event in the development of Indonesia’s capital markets, After deducting IPO issuance expenses , the net proceeds available to the company for operations and development amounted to approximately 13.7 trillion Indonesian rupiah.

2.2 Use of IPO Proceeds 

Based on the company’s prospectus and subsequent official disclosures, GOTO’s total net proceeds of 13.57 trillion Indonesian rupiah from this IPO were fully utilized by early 2026. The overall allocation of funds strictly adhered to the strategic direction outlined in the initial plan, with capital flows primarily covering multiple areas including parent company operations, investments in subsidiary businesses, specialized development of business segments, and expansion into overseas markets. Specifically, 4.07 trillion Indonesian rupiah was allocated to the parent company’s operations to support daily business operations and maintain liquidity reserves, and an equal amount of 4.07 trillion Indonesian rupiah was specifically injected into the e-commerce segment, Tokopedia, to enhance the platform’s ecosystem, upgrade merchant services, and expand market reach. The fin tech segment, GoPay, received 3.39 trillion Indonesian rupiah to improve payment systems, strengthen risk control, and expand user services. The remaining funds were allocated to consumer finance operations and overseas market expansion in Singapore and Vietnam. Additionally, a portion of the funds was set aside to cover underwriting, auditing, legal, and other issuance-related expenses throughout the IPO process. The overall allocation of funds generally aligns with the plan disclosed in the prospectus. 

From a comprehensive assessment of capital utilization efficiency and strategic positioning, the company’s use of funds demonstrates strong strategic alignment, with its overall strategy centered on the long-term development of its super-app ecosystem. Capital is primarily allocated to two high-potential core sectors,e-commerce and fin tech,which not only bolsters the group’s overall operating cash flow but also implements the strategic plan for differentiated business development. Concurrently, the company is steadily advancing its expansion into overseas markets and increasing investment in underlying technology R&D. The overall direction of capital allocation aligns with the company’s long-term growth strategy. However, in terms of actual operational results, the short-term return on capital investment has been relatively limited. In the early stages following the IPO, the company continued to incur significant operating losses. The pace of ecosystem synergy between Gojek transportation services and Tokopedia e-commerce business fell short of market expectations, and the benefits of cross-business traffic integration and user value extraction have not materialized quickly. A substantial portion of capital was allocated to business scale expansion and market competition costs, which have not yet rapidly translated into stable profits in the short term. Nevertheless, as subsequent cost control measures have been implemented, the long-term value of these investments has gradually become apparent. Profitability in the fintech segment has continued to improve, the Group’s overall losses have narrowed, and the operational improvements resulting from these investments are slowly taking effect. 

Based on a comprehensive assessment of the previously disclosed IPO objectives, this fundraising round did not fully achieve all of its predetermined goals and can be considered partially successful overall. Regarding the foundational objectives, the company successfully replenished working capital across its entire industrial chain, optimized the layout of its various business segments, expanded its brand’s market influence, and standardized its internal governance structure. At the same time, it successfully advanced the development of its fin tech business and made initial inroads into overseas markets, while covering the costs associated with the IPO. All of these foundational development objectives have been successfully accomplished. However, there are significant shortfalls in the core strategic objectives. The results of the deep integration and ecosystem synergy between the two main business units fell far short of expectations, and the cross-business ecosystem advantages have not been fully realized. Furthermore, the company has long been unable to achieve an overall net profit, and progress toward profitability targets lags significantly behind the plan. The return cycle for profit growth resulting from capital investment has been markedly extended, and the company has failed to rapidly establish a stable and sustainable profit system as initially planned.

2.3 Post-IPO Financial Performance 

GOTO went public in April 2022. When evaluated across multiple dimensions—including revenue, transaction volume, profitability, cost control, cash flow, and asset status—the company has not demonstrated consistently strong financial performance since its IPO. Overall, it remains in a development phase characterized by continued expansion, a significant narrowing of losses, and steady improvements in operational efficiency, though it has not yet achieved an overall return to profitability.  

In terms of revenue and overall business scale, the company has maintained a stable and sustained growth trend, and its operational fundamentals demonstrate the resilience required for steady expansion. The company’s annual revenue for 2022 was 13.5 trillion Indonesian rupiah, increasing to 13.97 trillion in 2023, and further rising to 18.1 trillion in 2024. The overall revenue growth over the three-year period was significant, with a year-over-year revenue growth rate of 30% in 2024. This reflects the gradually emerging impact of IPO proceeds in supporting business operations and market expansion, as well as the continued growth in user transaction activity and business coverage. Concurrently, the Group’s total transaction volume grew rapidly, with core transaction volume reaching 147.1 trillion Indonesian rupiah in 2024 and a year-over-year increase of 15.6%.  

Profitability metrics remain the core weakness in the company’s financial performance. Although the company has reported net losses for three consecutive years since its IPO, the magnitude of these losses has shown a positive trend of steadily and significantly narrowing. In 2022, the company’s full-year net loss reached IDR 5.1 trillion, marking the highest loss recorded in the early years following its IPO, in 2023, the net loss fell to IDR 3.8 trillion, representing a significant reduction in the scale of losses, In 2024, the net loss was further reduced to IDR 1.2 trillion, representing a reduction of over 77% compared to the loss in the first year of listing. The improvement in Adjusted EBITDA was particularly notable, this metric remained negative from 2022 to 2023, indicating that the core business had not yet developed the ability to generate profits, With the implementation of cost control measures and an increased share of high-margin fin tech operations, the company’s full-year adjusted EBITDA reached IDR 386 billion in 2024, successfully turning positive and exceeding the company’s previously set break even target. This marks the official arrival of the inflection point for core business profitability, with the return on capital investment gradually becoming evident. 

From the perspective of costs and operational efficiency, the company has continuously optimized its expense structure and improved operational efficiency since its IPO. Leveraging the ample capital raised through the IPO, the company has gradually reduced non-essential expenditures such as high-cost market subsidies and marketing promotions, while strictly controlling operating costs. As a result, the ratio of period expenses to operating revenue has continued to decline, demonstrating significant success in expense management. At the same time, the business structure has been continuously optimized: the revenue share of the highly profitable fintech segment has steadily increased, while the profitability of core businesses such as ride-hailing and food delivery has become more stable, gradually improving the overall profit structure. In terms of cash flow, supported by the substantial funds raised through the IPO, the company’s overall cash reserves have remained at an ample level, fully covering the capital required for daily operations and business investments. 

In summary, based on its overall financial performance, GOTO has achieved rapid growth in both revenue and total transaction volume over the three years since its IPO. The company has demonstrated significant effectiveness in cost control, with losses narrowing substantially and core profitability metrics successfully turning positive, indicating that its overall financial fundamentals continue to improve. However, when evaluated against strict criteria for robust financial performance, the company has not yet achieved a positive net profit attributable to shareholders, and the overall quality of its earnings remains to be improved. The profit gains derived from cross-business ecosystem synergies have not been fully realized, and the company still faces the risk of earnings volatility amid industry competition. Therefore, the company has only achieved growth-oriented financial improvement and has not yet met the standards of stable profitability and strong financial performance expected of a mature enterprise.

2.4 Stock Price Movements  

GOTO’s IPO offering price was 338 Indonesian rupiah per share. Market sentiment was high on the first day of trading, with the stock price rising by as much as 23% during the session. It ultimately closed at 382 Indonesian rupiah per share, up 13.02% from the offering price.  

However, the initial post-IPO rally did not last, and overall stock prices entered a sustained downward trend starting in the second month after the IPO, with the pace of decline accelerating. Starting in late April, driven by shifts in the global capital market environment, the stock’s upward momentum rapidly faded, and the share price gradually retreated, falling below the IPO offering price. From May through July, the global technology sector faced widespread selling pressure, compounded by the market’s ongoing interpretation of the company’s persistent operating losses. The decline in the share price continued to widen, halving from its initial high within three months and repeatedly setting new lows. By the six-month anniversary of the listing until October 11, 2022, the company’s stock price had fallen to 82 Indonesian rupiah per share. Compared to the initial public offering price of 338 Indonesian rupiah, the cumulative decline over six months reached 75.7%. All gains from the initial public offering were erased, resulting in a sharp plunge in the stock price and a significant contraction in market capitalization.  

By analyzing multiple factors,including macroeconomic conditions, corporate fundamentals, and industry competition,we can identify the core reasons behind the recent sustained and significant decline in the stock price. The Federal Reserve’s global rate-hiking cycle began in 2022, leading to a tightening of global liquidity. As a result, a large amount of risk-averse capital withdrew from highly valued, unprofitable tech companies, causing a broad weakening of global tech stocks. Tech stocks in emerging markets were hit particularly hard, and this broader market environment directly capped GOTO’s upside potential. And also the company’s valuation during its IPO carried a significant premium. The $28 billion valuation at the time of listing was severely mismatched with the company’s fundamentals, its lack of profitability and unclear path to profitability,leading the market to gradually correct the valuation and triggering a sustained decline in the stock price. At the same time, the company continued to report substantial operating losses after its IPO, and business integration progressed slowly. The synergies between Gojek and Tokopedia fell short of market expectations, leaving the stock price without the support of improving fundamentals and causing investor confidence to continue to wane. Furthermore, competition in the e-commerce and ride-hailing sectors has intensified, with rivals such as Grab and Shopee steadily capturing market share. Market concerns about the company’s long-term profit growth potential have further exacerbated selling pressure on the stock. 

Based on the above stock price trends, it can be concluded that GOTO exhibited an extremely weak performance in the six months following its IPO, characterized by a brief initial surge followed by a sustained, sharp decline, its short-term stock performance fell far short of market expectations. The sharp decline in the stock price not only reflects the market’s correction of the company’s relatively high IPO valuation but also reflects investors’ negative assessments of the company’s profit outlook, business integration efficiency, and competitive pressures within the industry. Investors who entered the market during the IPO phase were unable to achieve positive returns during this period, and the short-term investment risk in the secondary market is extremely high.

3. Decision analysis 

Based on a comprehensive analysis of GOTO’s IPO objectives, the use of proceeds, post-listing financial performance, and short-term stock price trends, if an opportunity to purchase shares were to arise during this IPO offering, I would not choose to invest. 

From a valuation perspective, GOTO was significantly overvalued at the time of its IPO, which was severely out of alignment with the company’s actual operating fundamentals at the time. During the IPO phase, the company was still incurring substantial net losses, had not yet established a stable and sustainable profit model, and lacked a clear timeline for returning to profitability. With the high valuation lacking support from actual performance, there was a significant risk of a valuation correction, and the subsequent sharp decline in the stock price confirmed this underlying risk. An analysis of the company’s capital utilization and current strategic development reveals that, while the use of funds generally aligns with the prospectus and the strategic direction is clear, the integration efficiency of the two core business segments remains low. Synergies within the ecosystem have fallen far short of market expectations, and the cycle for converting capital investment into operational returns is excessively long, resulting in high uncertainty regarding the company’s long-term growth. 

From a financial development perspective, in the three years since its IPO, the company has only achieved growth in revenue and a narrowing of losses, its core net profit has yet to turn positive, indicating a weak profit foundation in its core business. Meanwhile, strong competitors such as Grab and Shopee within the industry continue to squeeze profit margins through intense market competition, placing significant pressure on the company’s profitability and failing to provide a stable fundamental basis for long-term investment. Furthermore, examining the stock’s performance in the six months following the IPO, the share price has experienced a sustained sharp decline after a brief initial rise, resulting in a significant contraction of market capitalization in the short term. Investors who entered the market during the IPO period are generally facing substantial losses, and short-term investment returns in the secondary market have been extremely poor, with overall market sentiment remaining persistently low. 

Taking into account multiple risk factors, whether considering short-term secondary market returns, the certainty of mid-term fundamental improvements, or long-term profit growth potential, the investment risks associated with this IPO far outweigh the potential returns. Although the company, as a leading local super app in Indonesia, possesses certain long-term growth potential, issues such as valuation bubbles, uncertain profitability, slow business integration, intense industry competition, and unfavorable macroeconomic conditions mean that this investment target does not offer reasonable investment value at the IPO stage. Therefore, we will not choose to invest in its shares at this time.

4. References 

[1] PT GoTo Gojek Tokopedia Tbk. (2022). Prospectus: Initial public offering of series A shares.Indonesia Stock Exchange.  

[2] PT GoTo Gojek Tokopedia Tbk. (2026, January 14). Report on the use of proceeds from the public offering. Indonesia Stock Exchange.  

[3] PT GoTo Gojek Tokopedia Tbk. (2023). Annual report 2022: Scaling the ecosystem, empowering the nation.  

[4] PT GoTo Gojek Tokopedia Tbk. (2024). Annual report 2023: Path to profitability.  

[5] PT GoTo Gojek Tokopedia Tbk. (2025). Annual report 2024: Sustainable growth and ecosystem synergy. 

[6] PT GoTo Gojek Tokopedia Tbk. (2026, March 10). Consolidated financial statements as of December 31, 2025 and for the year then ended. 

[7] PT GoTo Gojek Tokopedia Tbk. (2026, March 11). Financial statements full year 2025 (Audited). Indonesia Stock Exchange.   

[8] PT GoTo Gojek Tokopedia Tbk. (2025, December 25). Q4 2024 and full year 2024 results: Earnings presentation. 

[9] PT GoTo Gojek Tokopedia Tbk. (2026, April 18). Investor presentation: FY25 financial highlights and FY26 guidance.   

[10] Samuel Sekuritas Indonesia. (2023, December 12). GoTo Gojek Tokopedia: Deal of the year – TikTok & Tokopedia partnership analysis.  

[11] Shinhan Sekuritas Indonesia. (2023, December 18). PT GoTo Gojek Tokopedia Tbk (GOTO): Cementing positive profitability outlook .  

[12] Indonesia Stock Exchange (IDX). (2026). Stock price history: GOTO.JK.  

[13] Jakarta Globe. (2026, March 11). GoTo narrows net loss by 77% in 2025 as revenue climbs.