Date
19 November 2018
Indonesian ride-hailing startup Go-Jek has raised new capital as it seeks to expand into other Southeast Asian markets. Photo: Bloomberg
Indonesian ride-hailing startup Go-Jek has raised new capital as it seeks to expand into other Southeast Asian markets. Photo: Bloomberg

China’s Tencent, JD.com invest in Indonesia’s Go-Jek: report

Google, Tencent (00700.HK) and JD.com are said to be backing Indonesian ride-hailing startup Go-Jek in new financing worth a combined US$1.2 billion.

The deal, if it goes through, would double Go-Jek’s valuation to over US$9 billion, online media outlet The Information reported, citing people familiar with the matter.

The funding scale could reach US$1.5 billion “if more investors participate”, according to the report.

In the last fundraising round in February, Go-Jek raised US$1.5 billion from a dozen investors including BlackRock and Google, with a valuation of about US$5 billion. Existing early investors also include Singapore’s Temasek Holdings.

With the fresh capital, Go-Jek will further expand its operation into Southeast Asian markets, including Vietnam and Thailand.

The startup is set to enter Singapore, where its pre-registration of driver-partners has begun.

According to The Information, Go-Jek also aims to deepen alliances with key strategic partners and seek business collaboration.

Established in 2010, Go-Jek engages in a broad range of services in its Indonesian home market, including a motorbike-on-demand service and ride-hailing for four-wheeled vehicles.

It delivers everything from meals and groceries to cleaners, masseuses and hairdressers, via its mobile app-based all-purpose platform similar to Tencent’s popular WeChat app.

As Go-Jek gained traction, it has become a formidable competitor to Singapore-based rival Grab, which is backed by tech conglomerate SoftBank and Chinese ride-hailing giant Didi Chuxing.

Go-Jek and Grab are both investing heavily in expanding their mobile payments platforms, a key area where their investors see value. Go-Jek’s payment system, known as Go-Pay, has emerged as one of the most popular mobile payment platforms in Indonesia.

Grab has just raised US$200 million from Booking Holdings, owner of multiple online hospitality brands including Booking.com and Agoda. Earlier this month, Microsoft came in as another backer.

Last week, Grab announced a partnership with payments processor Mastercard for issue of prepaid cards tailored to the Southeast Asian market, a move aimed at taking on Chinese payment giants.

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BN/RC

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