Blog > Marketplace News > After TikTok Takes Control of Tokopedia, The Latter is Gradually Reducing the Indian Business
After TikTok Takes Control of Tokopedia, The Latter is Gradually Reducing the Indian Business
Jayson 21 Mar 2024 12:04
Since TikTok controls Tokopedia, Indonesia's largest e-commerce platform, Tokopedia's parent company GoTo is gradually reducing Tokopedia's business in the Indian market.
In December last year, TikTok acquired 75.01% of Tokopedia's shares, achieving absolute control of the latter. Most of Tokopedia's back-end business comes from India. Given India's comprehensive ban on TikTok and India's domestic geopolitical tensions, Tokopedia is worried about potential conflicts with the Indian government.
According to foreign media reports, at a town hall meeting held in early February, GoTo management discussed this issue with the Tokopedia India team and prepared to launch a transition plan in the next two quarters to slowly reduce its business in India. Specific measures Including salary cuts, layoffs, etc.
As of March 2024, Tokopedia has completed the merger and acquisition process with TikTok, and all systems (including back-end processes and payment systems) have been transferred to Tokopedia.
According to people familiar with the matter, Gojek, another division of GoTo, is also re-hiring and asking some Indian employees to move to the Indonesian office. Some sources also disputed that Tokopedia would completely close its Indian business, saying that this was part of a large-scale restructuring within the group aimed at achieving higher performance indicators.
In December last year, TikTok acquired 75.01% of Tokopedia's shares, achieving absolute control of the latter. Most of Tokopedia's back-end business comes from India. Given India's comprehensive ban on TikTok and India's domestic geopolitical tensions, Tokopedia is worried about potential conflicts with the Indian government.
According to foreign media reports, at a town hall meeting held in early February, GoTo management discussed this issue with the Tokopedia India team and prepared to launch a transition plan in the next two quarters to slowly reduce its business in India. Specific measures Including salary cuts, layoffs, etc.
As of March 2024, Tokopedia has completed the merger and acquisition process with TikTok, and all systems (including back-end processes and payment systems) have been transferred to Tokopedia.
According to people familiar with the matter, Gojek, another division of GoTo, is also re-hiring and asking some Indian employees to move to the Indonesian office. Some sources also disputed that Tokopedia would completely close its Indian business, saying that this was part of a large-scale restructuring within the group aimed at achieving higher performance indicators.
