JAKARTA (TheInsiderStories) – Southeast Asia’ largest online transportation apps, PT Aplikasi Bangsa (GoJek) and Malaysia’ Grab Holdings Inc., in merger talks, global media reported on Monday (02/24). The companies with valued US$14 billion and $9 billion deal would be the latest step in consolidation to stem losses caused by costly fight and to broader the businesses.
The talks between Japanese SoftBank-backed and Chinese Tencent-backed GoJek are reportedly is still in the initial stages. As known, the providers have a large market in Southeast Asia, especially in Indonesia. Both not only compete in terms of transportation services, but also in the payment and food-delivery system.
GoJek and Grab, which were founded in 2010 and 2012 respectively, wants to be the super apps of choice in Southeast Asia’ largest economy. Both companies are announcing new partnerships and acquisitions almost every week.
As an example, Grab was reportedly in talks to merge its digital payment provider OVO with DANA owned by local tycoon firm, PT Elang Mahkota Teknologi Tbk (IDX: EMTK). If happens, both providers have the potential to dominate Indonesia’ digital payment market and defeat GoPay’ dominance.
Both also expanded into new business lines, moving beyond ride-hailing and food delivery into digital payments and wealth management. The two companies have burn through billions of dollars over the past several years to develop some new businesses, even as they continue to raise money.
The Singapore-based company has raised $4.5 billion in its latest funding round, including $2 billion from SoftBank. While, GoJek has targets to raises $3 billion fresh funds to enter Southeast Asian market.
GoJek backed by some of the biggest names such as Google, Temasek, Warburg Pincus and Tencent while Grab is funded by SoftBank, Microsoft and Didi Chuxing.
GoJek now operates in 207 cities across four countries in the region, 203 of which are in Indonesia and its competitor, Grab is present in 339 cities across eight countries, and the majority (224) in the archipelago.
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