Why This Indonesian Crypto Exchange Giant Bough For $8 Million

By a report from Reuters, Indonesia’s largest digital economy platform GoTo has purchased crypto exchange PT Kripto Maksima Koin. The company has made efforts to expand and diversify its services after recording significant growth in the first half of 2022.

According to the report, PT Goto Gojek Tokopedia Tbk (GoTo) has acquired 100% of the shares of the crypto exchange. The digital platform paid $8.4 million for the acquisition.

PT Kripto is one of 25 crypto exchanges with a license from the Indonesian Commodity Futures Trading Regulatory Agency. Its acquisition could be part of a broader strategy to integrate a blockchain and digital asset business into its structure, a GoTo spokesperson told Reuters:

We believe that blockchain technology can play a major role in the future of finance.

The company has yet to announce any future plans to acquire other platforms. According to the report, the platform raised over $1 billion in an initial public offering (IPO) completed in early 2022. GoTo aims to become a one-stop-shop for managing digital money.

In May 2021, Goje and Tokopedia, two of Indonesia’s biggest startups, announcement a merger. The companies banded together and created the GoTo group. to compete with other platforms and survive the economic consequences left by two years of global pandemic.

In total, the Goto Group has recorded over $22 billion in gross transaction value, 1.8 billion transactions and 11 million merchant partners. 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 trading volume for digital assets skyrocketed by more than 1,000% in 2021 alone, reaching over $57 billion compared to 2020.

Crypto could support more growth for tech company GoTo

In a recent reportGoTo reported a gross transaction value (GTV) of 39% 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 register 67 million users.

The platform has implemented a strategy to encourage its customers to spend on its products and services. The average value of spend per user increased 17% year over year.

Acquiring a crypto exchange and promising to provide new features and services to its partners and customers could become a powerful catalyst for the second half of 2022 as the company tries to navigate the current macroeconomic conditions.

Andre Soelistyo, Chairman of GoTo Group, said the following about the company’s growth, hinting at further expansion:

Amid the current macroeconomic challenges, we are strengthening our leadership in Indonesia, expanding diversity and deepening the ecosystem to continue growing our business. Overall, the industry will continue to adapt amid rapid change.