SoftBank Leads Push to Oust GoTo CEO for Grab Deal

In a significant corporate governance confrontation, SoftBank Group Corp. has joined forces with Provident Capital Partners and Peak XV to challenge GoTo Group’s leadership. The coalition represents some of the most influential backers in the Southeast Asian tech ecosystem, creating a formidable front against current CEO Patrick Walujo. According to people familiar with the matter, several shareholders have signed a memo to the board formally requesting an extraordinary general meeting, though the individuals asked not to be identified as the move remains confidential.

The investor group’s composition is particularly noteworthy, including not only financial heavyweights like SoftBank but also some of GoTo’s own co-founders. This alignment of external investors and internal stakeholders suggests deep dissatisfaction with the current leadership direction. The formal request for a shareholder meeting represents an escalation of what appears to be mounting tensions between Walujo and the company’s major backers, signaling that private discussions may have failed to resolve fundamental disagreements about GoTo’s strategic direction.

Central to the investor discontent is GoTo’s financial performance under Walujo’s leadership. During his tenure, the company has experienced a staggering decline of more than 40% in market value, representing significant destruction of shareholder wealth. This performance metric has likely intensified pressure from investors who have seen their stakes diminish substantially since Walujo assumed leadership of the Indonesian tech giant.

The proposed vote to replace the CEO reflects growing impatience among major shareholders with the company’s trajectory. For firms like SoftBank, which has made substantial investments across Southeast Asia’s tech landscape, the declining valuation of one of their portfolio companies represents both a financial setback and a strategic concern. The involvement of Peak XV, formerly known as Sequoia Capital India & Southeast Asia, adds another layer of significance, given the firm’s longstanding reputation and influence in the region’s technology investment ecosystem.

The leadership challenge appears directly linked to ongoing discussions about a potential acquisition by Grab Holdings Ltd., with Walujo perceived as opposing such a deal. This resistance has likely created a fundamental rift between the CEO and his major backers, who may view consolidation as necessary in an increasingly competitive Southeast Asian market. The prospect of a Grab-GoTo combination represents one of the most significant potential transactions in the region’s tech history.

A merger between Grab and GoTo would create a dominant force across multiple sectors including ride-hailing, food delivery, and financial services throughout Southeast Asia. For investors like SoftBank, which has stakes in both companies, consolidation could offer synergies, cost savings, and reduced competitive pressures that might help reverse the valuation declines both companies have experienced in recent years. The push to replace Walujo suggests investors believe his departure is essential to unlocking this strategic opportunity.

The timing of this shareholder action, coming amid ongoing talks between the companies, indicates that investors see an urgent window for consolidation. With both companies facing market pressures and investor expectations, the coalition led by SoftBank appears determined to remove what they perceive as the primary obstacle to a deal that could reshape the competitive landscape of Southeast Asia’s digital economy.