The California-based search engine, Google, and China’s
Meituan-Dianping are set to invest in the Indonesian ride hailing company, Go-Jek,
which is the rival of Uber and Grab, according to sources, who declined to be
identified as they are not authorized to speak to the media.
Google and other businesses will be investing in Go-Jek. |
The sources stated that the existing investors of Go-Jek, which are the global private equity firms KKR & Co LP and Warburg Pincus LLC, are also participating in the funding round, which is raising a total of $1.2 billion.
The funding round was opened last year and it is expected to close
in just few weeks.
The funding by the prominent investors, including Google, provides
Go-Jek a greater firepower to tackle competition at home from its rival Grab
and Uber Technologies Inc., which are aiming the Southeast Asia’s most populous
country, Indonesia, as a large potential market.
“As a strategic investor, Google can add a lot to Go-Jek’s
business,” one of the sources stated.
However, it is still not clear how much the investors will be
pumping in individually.
Google, Warburg, Temasek, and KKR declined to give any comments.
Meanwhile, Meituan-Dianping and Go-Jek did not immediately respond to the
requests for comments.
Go-Jek, which was founded in 2011, began as a ride-hailing app for
motorcycle taxis and the company operates mainly in Indonesia. However, the
company expanded to offer regular taxis, services, and shopping on demand. It
is also developing a food delivery business. The company’s mobile payment
business, Go-Pay, is also rising swiftly.
Both Uber and Grab also offer similar motorcycle taxis options in
some parts of Southeast Asia, while Grab has also ventured into the mobile
payment space.
According to a report last year, JD.com Inc. was investing about
$100 million in the Indonesian ride hailing company. Then, it was followed by an
investment from Tencent Holdings Ltd, a Chinese social media and online
entertainment firm, which is also an investor in JD.com Inc.
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Google to Invest in Go-Jek
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