Gojek's optimism it will raise $2 billion by the year's end is not misplaced. Though the funding is less than half of Grab's $4.5 billion, Gojek has its strengths. It is more creative, expanding into medicine and massage delivery even, and is more marketing-savvy than Grab.
Indonesia’s Gojek is on track to raise $2 billion in its ongoing funding round before the end of the year, accelerating capital-raising to drive an expansion into mobile payments and food delivery.
The ride-hailing giant has now handled about $1.5 billion of transactions outside of Indonesia, thanks to a budding expansion into the rest of Southeast Asia, President Andre Soelistyo told Haslinda Amin on Bloomberg Television. Backed by Google and Tencent Holdings, Gojek has rapidly grown an international business from scratch after setting up shop in countries like Singapore and Vietnam just nine months prior, he said.
Gojek is trying to out-do Singapore-based Grab Holdings in the provision of a plethora of internet services that both companies hope to build into a coherent, all-purpose super-app. The Indonesian startup had raised about $1 billion from Tencent and others as of early 2019, but it remains on the hunt for capital. Amazon.com is said to be in talks to join the current round to bolster its presence in Southeast Asia, but Soelistyo declined to comment on potential backers. On Thursday, Grab co-founder Tan Hooi Ling said it will invest $150 million into artificial intelligence research, staffing and development over the next year to boost its own competing app and services.
“We can say now we’re not just an Indonesian company,” Soelistyo said in an interview at Bloomberg’s Sooner Than You Think conference in Singapore. Gojek is in “four countries and hopefully soon into six.”’
Gojek debuted its app for hailing motorbike taxis in Jakarta in 2015. Since then, it has evolved into a provider of ride-sharing services, food delivery and a digital wallet. It also offers a dozen other on-demand services such as house cleaning and medicine delivery.
As part of the ongoing funding round, Gojek — valued at $10 billion according to CB Insights — had also secured investment from Visa, Thailand’s Siam Commercial Bank, Mitsubishi Motors, Mitsubishi, and Mitsubishi UFJ Lease & Finance this year. The terms of those deals have not been disclosed.
©2019 Bloomberg L.P.
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Photo Credit: Gojek president, Andre Soelistyo. Paul Miller/Bloomberg