Why This Indonesian Tech Giant Bough Crypto Exchange For $8 million
Per a report from Reuters, Indonesia’s largest digital economy platform GoTo purchased the crypto exchange PT Kripto Maksima Koin. The company has been making efforts to expand and diversify its services after recording important growth in the first half of 2022.
According to the report, PT Goto Gojek Tokopedia Tbk (GoTo) acquired 100% of shares from the crypto exchange. The digital platform paid $8,4 million for the acquisition.
PT Kripto is one of the 25 crypto exchange platforms with a license from Indonesia´s Commodity Futures Trading Regulatory Agency. Its acquisition could be part of a bigger strategy to integrate a blockchain and digital asset business into its structure, a spokesperson for GoTo told Reuters:
We believe that blockchain technology may play a mainstream role in the future of finance.
The company is yet to announce future plans to acquire other platforms. According to the report, the platform raised over $1 billion in an Initial Public Offering (IPO) conducted early in 2022. GoTo is aiming at becoming a one-stop shop for digital money management.
In May 2021, Goje and Tokopedia, two of the biggest startups in Indonesia, announced a merger. The companies combined and created the GoTo Group. to compete with other platforms and survive the economic consequences left by two years of the worldwide pandemic.
In total, the Goto Group has recorded over $22 billion in Gross Transaction Value, 1.8 billion transactions, and 11 million merchant partners. An integration with crypto and blockchain technology could further boost their growth.
In Southeast Asia, the adoption of digital assets has been significant. Data from Reuters claims that transaction volume for digital assets skyrocketed by over 1,000% in 2021 alone reaching over $57 billion compared to 2020.
Crypto Could Support More Growth For Tech Company GoTo
In a recent report, GoTo reported a 39% gross transaction value (GTV) compared to 2021. At the same time, the company was able to increase its gross revenue by 45% and its number of users by 28% to record 67 million users.
The platform has been implementing a strategy to incentivize its clients to spend on its products and services. The average spending value per user saw a 17% increase year-on-year.
The acquisition of a crypto exchange and the promise of providing new features and services for its partners and customers could become a powerful catalyzer for the second half of 2022 as the company attempt to navigate the current macroeconomic conditions.
Andre Soelistyo, President of the GoTo Group, said the following about the company’s growth, hinting at further expansion:
Amid the ongoing macroeconomic challenges, we are strengthening our leadership in Indonesia, expanding the diversity and deepening the ecosystem to continue to grow our business. Overall, the industry will continue to adapt in the midst of rapid change.