The Chinese social media company’s TikTok Shop more than doubled its market share to 11% this year, Walujo said on a conference call with investors Thursday. GoTo’s share of the pie shrank to 23% from 28% over that span, he said.

TikTok this week agreed to invest US$1.5 billion in a joint venture with GoTo that it will control, a pact aimed at addressing the Chinese company’s regulatory obstacles in its biggest online-retail market. GoTo becomes a passive backer of the venture, relinquishing control of its Tokopedia e-commerce arm.

“We were going to lose even more market share if we didn’t do anything,” Walujo said. “Once we combine, we have a very high chance to become the No 1 player in a much bigger market.”

GoTo shares advanced as much as 9% in Jakarta on Thursday.

GoTo also said it will receive a quarterly fee based on e-commerce services provided as part of the deal, which will directly contribute to its earnings.

It’s now more likely GoTo will achieve its target of positive adjusted earnings before interest, taxes, depreciation and amortization this quarter, Walujo said.