Published By : 19 Jan 2018 | Published By : QYRESEARCH
As a part of the latest fundraising round of US$1.2 bn, Google, Meituan-Dianping, and Singapore-based Temasek are investing in Go-Jek, an Indonesian ride-hailing company, supporting it in the clash with its deep-pocketed rivals, such as Uber and Grab. The investments by Google, which is a first in a ride-hailing company in the Asian continent, and various other prominent investors underline both, the tremendous need for funds in ride-hailing businesses and the potential for growth in this business in South East Asia, which houses nearly 640 million people. Of late, the spending in these businesses have been heavy in order to grab the attention of both drivers and riders. With numerous promotions and discounts, they have drained out their cash and are frequently courting deep-pocketed investors for capital investment.
SoftBank, the biggest investment bank in Japan, has been investing in Grab and Uber for a while, whereas, Go-Jek has gained investments from China-based technology giants, JD.Com and Tencent Holdings. Google, as a strategic investor, can add a lot to the business of Go-Jek. The challenge to the Indonesian company is not how to develop the business but to how to have a large pool of investors to support all its services. The existing investors of the company, such as Warburg Pincus and KKR & Co., are also actively participating in the latest fund-raising round, which opened in 2017 and is expected to be closed in a few weeks. Google is said to invest nearly US$100 mn. “Samsung Venture Investment is also participating in the funding round,” stated a source.