Indonesian Go-Jek Raises US$1.5 Billion Funding

Photo courtesy of Go-Jek

JAKARTA (TheInsiderStories) Go-Jek, an Indonesian ride-hailing company has raised US$1.5 billion in venture capital funding from investors included Google and Blackrock. After the deals the value of Go-Jek at around $5 billion now.

Earlier this month, PT Astra International Tbk (IDX: ASII), the Indonesian conglomerate has invest $150 million in Go-Jek. Meanwhile, internet giant company, Google has confirmed its plan to invest in Go-Jek, aiming to support and participate in Indonesia’s growth.

“This investment lets up partner with a great local champion in Indonesia’s flourishing startup ecosystem, while also deepening our commitment to Indonesia’s internet economy,” said Google Vice President Caesar Sengupta on Jan. 29.

According to some reports earlier this month, Google which was made alongside China’s Meituan-Dianping and Singaporean sovereign fund Temasek Holdings. The trio were part of a final tranche of a US$1.2 billion round that Go-Jek began negotiating on last April, with commitments from the likes of Tencent and in China.

Go-Jek continues to strengthen its grip in the country’s electronic payment system by adding its new Go-Bills service on November, 2017. Makarim said Go-Bills is a platform that can be used for numerous bill payments and the platform can be accessed through Go-Pay.

He said the new platform will expand the existing ecosystem in Go-Pay services in providing cashless payments, in line with government’s effort to promote a cashless society.

Launched in April 2016, Go-Pay grew fast. The company is currently preparing infrastructure, including applications for customers, that will make it easier for them to carry out transactions with various merchant partners using Go-Pay, and targets Go-Pay to fully operate independently from Go-Jek.

GoJek currently is working with more than 300,000 driver-partners and 100,000 SMEs. Go-Jek was established in 2010 as an on-demand transportation platform for motorbikes.

However, Go-Jek’s portfolio of services has been broadly expanded since then to include grocery delivery, courier services, home cleaning, massages and food services.

With a population of more than 250 million, Indonesia is the world’s fourth-most-populous nation and the largest economy in Southeast Asia. Indonesia is eyeing e-commerce to become a market worth an estimated $130 billion by 2020 from a current $8 billion.