GOTO and TikTok are preparing new BNPL services [UPDATED]

PT Gojek Tokopedia Tbk (IDX: GOTO) confirmed that it is preparing a Buy Now Pay Later (BNPL) service with TikTok -- following its partnership with Tokopedia. There was no further elaboration regarding this financial product, but this discourse was touched on following the business merger E-commerce Tokopedia and TikTok.

In broadcast webcast GOTO 2023 performance, GoTo Financial Technology President Thomas K. Husted confirmed that he is preparing two new initiatives to accelerate the growth of the Fintech line of business this year.

"We confirm that we are in the process of launching BNPL services with TikTok. We are also working with BFI Finance to finance vehicles for driver us," said the man known as Tom, Tuesday (19/3).

Tom said that the partnership with BFI was a pilot project and still needed approval from the regulator. This trial is also non-exclusive. “The two initiatives above provide great hope. "This is the initial stage if you look at our current position [performance]," he added.

GOTO just released 2023 financial report where the Fintech line recorded the largest gross revenue growth compared to other business segments (On Demand, E-commerce, Logistics), amounting to IDR 1,8 trillion or growing 15% (YoY). Positive adjusted EBITDA was recorded to have shrunk from minus IDR 3,2 trillion to minus IDR 1,5 trillion.

Last year, GOTO launched several major initiatives to boost its financial technology business. The first is to release (spin-off) GoPay becomes a separate application from Gojek as a strategy to reach more users. Second, synergize with Bank Jago to launch savings products GoPay Savings by Bank Jago.

Following the TikTok and Tokopedia integration process which is said to be almost complete, a number of use case is currently being prepared together with the GOTO ecosystem, including Bank Jago.

"We are targeting strong business growth while being vigilant about our credit in 2024." Close Tom.

Throughout 2023, GOTO has cut losses in adjusted EBITDA to minus IDR 3,6 trillion from minus IDR 16 trillion in 2022. Specifically in the fourth quarter of 2023, GOTO has realized positive adjusted EBITDA for the first time amounting to IDR 77 billion in the fourth quarter.

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Update 21/3: We changed the subtitle of this article