Singapore-based Grab Holdings has encountered complications in its planned acquisition of Indonesian super-app parent GoTo Group, according to sources familiar with the negotiations, putting at risk what would be Southeast Asia's largest technology consolidation.
The merger, which would combine the region's two dominant ride-hailing and delivery platforms with a combined market capitalization exceeding $40 billion, has stalled over valuation disagreements and regulatory concerns across multiple jurisdictions, sources told The Straits Times.
GoTo, the parent company of Gojek and e-commerce platform Tokopedia, went public on the Indonesia Stock Exchange in 2022 at a valuation of $26.2 billion. The company's shares have since declined more than 60 percent amid mounting losses and intensifying competition.
Grab, which operates across eight Southeast Asian countries and went public via SPAC merger in 2021, reported narrowing losses in recent quarters but continues burning cash to defend market share against competitors including Singapore's ComfortDelGro, Indonesia's Bluebird, and various regional players.
Regional Consolidation at Stake
The proposed combination would create a technology champion spanning ten ASEAN nations, controlling ride-hailing, food delivery, digital payments, and logistics infrastructure used daily by tens of millions across the region.
But the deal's fate tests whether Southeast Asia can build homegrown technology giants capable of competing with China's Meituan and Didi or India's Ola—or whether the region's fragmented regulatory landscape and nationalist concerns will prevent the consolidation needed for global scale.
Indonesian regulators have signaled scrutiny of any transaction that would place the country's largest delivery and payments platform under foreign control. Singapore, Thailand, Vietnam, and the Philippines would each conduct separate competition reviews.
GoTo operates Gojek, which commands an estimated 50-60 percent share of Indonesia's ride-hailing market, along with GoPay digital wallet and GoFood delivery service. The platform recorded 2.5 million drivers and 55 million monthly active users as of its most recent disclosure.
Grab dominates in Singapore, Malaysia, and the Philippines, with strong positions in Thailand and Vietnam. The combined entity would control an estimated 70-80 percent of ride-hailing across major Southeast Asian cities.
Investor Pressure Mounts
Both companies face pressure from investors including SoftBank, Alibaba, Google, and Temasek—many of which hold stakes in both platforms—to achieve profitability after years of subsidized growth.
GoTo reported a net loss of 7.2 trillion rupiah ($450 million) in the first nine months of 2025. Grab's losses narrowed to $612 million for the same period, down from $1.1 billion a year earlier, but the company has yet to achieve sustained profitability.
The stalled negotiations reflect broader questions about Southeast Asia's technology sector, which attracted $28 billion in venture funding from 2015-2022 but has struggled to demonstrate viable unit economics at scale.
Alternative scenarios reportedly under consideration include a joint venture structure that would preserve national ownership of Indonesian operations while allowing operational integration, or a complete abandonment of the transaction in favor of continued competition.
Representatives for Grab and GoTo declined to comment.
Ten countries, 700 million people, one region—and the question is whether fragmentation or consolidation will define Southeast Asia's digital future. The answer will determine whether the region builds technology champions or remains a battleground for foreign platforms.
