GO-JEK IN TALKS TO RAISE US$2B
Indonesian startup plans to close funding round in few weeks, say sources
GO-JEK, Indonesia’s most valuable technology startup, is in talks to raise at least US$2 billion (RM8.28 billion) to fuel an accelerated expansion overseas, according to a person with direct knowledge of the matter.
The Jakarta-based company plans to close the funding round in several weeks, said the person.
The startup’s existing backers include Tencent Holdings Ltd, Temasek Holdings Pte and Warburg Pincus.
Go-Jek is building up its arsenal to expand in Southeast Asia and fight Singapore-based rival Grab, which bought Uber Technologies Inc’s business in the region and has said it’s on track to raise US$3 billion in fresh capital this year.
The Indonesian company got its start with ride-hailing and has since added a range of on-demand services that lets users pay bills, order food and buy movie tickets.
“There is an element of a land grab, not just in geography but in different verticals, whether it’s delivery or payments, as everyone’s trying to put his stick in the ground,” said Kuo-Yi Lim, managing partner at Monk’s Hill Ventures here, which is not an investor in either company.
“There’s also a bit of an arms race going on in capital raisings between the two rivals.”
Go-Jek has turned to acquisitions in recent years to build a group of leaders overseeing different businesses.
“We are building a strong bench who really want to make a change in Indonesia and in Southeast Asia as we expand,” Go-Jek president Andre Soelistyo said at the Milken Institute Asia Summit on Friday.
Go-Jek was founded in Jakarta and has been expanding beyond the Indonesian market.
It began motorcycle hailing and courier delivery services in Hanoi last week after a soft launch in Ho Chi Minh City.
“Go-Viet”, its brand in Vietnam, is the first of the company’s international operations. Go-Viet plans to roll out additional services such as car-hailing, food delivery and e-money services.