Google to invest in Indonesia’s Go-Jek

SINGAPORE: Alphabet Inc’s Google, Singapore state investor Temasek Holdings and Chinese online platform Meituan-Dianping are investing in a fundraising round of Indonesian ridehailing start-up Go-Jek, sources familiar with the matter said.

Go-Jek’s existing investors such as global private equity firms KKR & Co LP and Warburg Pincus LLC are also participating in the funding round, which is raising about US$1.2 billion (RM4.74 billion) in total, the sources said.

They said the funding round opened last year and is expected to close in a few weeks.

The funding by prominent investors including Google gives Go-Jek greater firepower to tackle competition at home from Grab and Uber Technologies Inc which are viewing Indonesia, Southeast Asia’s most populous country, as a large potential market.

“As a strategic investor, Google can add a lot to Go-Jek’s business,” said one source.

It was not immediately clear how much the investors are pumping in individually.

Google, KKR, Warburg and Temasek declined to comment. Meituan-Dianping and Go-Jek did not immediately respond to requests for comment. The people declined to be identified as they were not authorised to speak to the media.

Go-Jek, which began as a ride-hailing app for motorcycle taxis, operates mainly in Indonesia but is developing a food delivery business. Its mobile payment business, Go-Pay, is also growing rapidly. – Reuters