JAKARTA (TheInsiderStories) – Indonesia-based multi platform GOJEK announced an unspecified investment from Japan’ Mitsubishi Motors Corporation, Mitsubishi Corporation, and Mitsubishi UFJ Lease & Finance as part of its ongoing Series F funding round.
The three parties have signed a memorandum of understanding to discuss joint projects to create value from new mobility services in Southeast Asia, the company said in a written statement on Monday (07/08).
Mitsubishi Corporation is an existing GOJEK investor, having participated in the first close of its Series F round announced in February. Mitsubishi Motors Corporation chairman Osamu Masuko, said the fresh investment will allow the car maker to tap into the unicorn’ expertise and presence in the mobility and consumer services market in the region.
While, Mitsubishi UFJ’ president and CEO Takahiro Yanai said the financial services provider will reinforce its partnership with GOJEK and explore new business models focused on digital and mobility services. From GOJEK side, the group president Andre Soelistyo noted these partnerships enable the company to continue to develop a new products and services to reach more people and create greater value in the region.
The startup last announced raising US$100 million in March from Indonesian conglomeration compay, PT Astra International Tbk (IDX: ASII), a follow-on funding from the conglomerate that pumped in $150 million in its Series E round last year.
The funding from Astra brought GOJEK’ Series F round to its first close. Although the company did not reveal details, its learned to have then raised over $1 billion at a nearly $10-billion valuation from investors including Provident Capital, Google, JD.com and Tencent.
The provider is said to be seeking an additional $2 billion in equity and debt financing to close the Series F round. Earlier that it has hired global brokerage Citi to work on the fundraising.
GOJEK has earlier said that it plans to invest the Series F funds across transport, food delivery, logistics, mobile payments, and merchant services businesses. It also plans to use proceeds to accelerate its market expansion across Southeast Asia, a market which has been dominated by the heavily-funded Grab.
The Indonesian startup has been expanding aggressively into three new regional markets – Vietnam, Singapore, and Thailand. Its yet to enter the Philippines as its plans to foray into the market hit a roadblock early this year due to foreign ownership regulations.
It has also expressed interest in extending its services to Malaysia, Myanmar, and Cambodia this year. GOJEK is gearing up to race against its larger rival Grab. Their rivalries range from ride-hailing to mobile payments and food delivery services in the markets that both startups are present in.
Last week, the Malaysian company announced a new investment from consumer credit giant Experian as part of its ongoing Series H funding round, a week after securing $300 million in financing from United States-based investment manager Invesco.
Grab has previously said that it aims to raise $6.5 billion for its Series H, which is expected to close by the end of this year. It has already secured more than $4.5 billion for the round, including a whopping $1.46-billion funding by SoftBank Vision Fund.
Southeast Asia has seen a surge in fundraising over the last four years as internet companies in the region began to seriously attract the attention of venture capital, private equity and corporate investors in 2015 when funds raised crossed the $1 billion mark for the first time, according to a Google-Temasek report.
In the first half of last year, Southeast Asia’s internet companies raised $9.1 billion – an all-time record. The region’s ride-hailing market is expected to reach $28 billion by 2025 from an estimated $7.7 billion last year, said the report.
Written by Lexy Nantu, Email: firstname.lastname@example.org