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Ride-hailing giant Gojek raises US$1.2 billion for clash with Grab

  • Total raised in current financing just under US$3 billion
  • Amazon.com was said to be negotiating to join funding round

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Motorcycle driver with Indonesian start-up Gojek on June 11, 2015. Photo: AFP
Bloomberg

Southeast Asian ride-hailing giant Gojek has raised US$1.2 billion for expansion, defying tech-sector turbulence and the coronavirus pandemic to secure funds to take on Grab Holdings Inc.

The new financing was finalised just over the past week, when the Covid-19 outbreak quickened its spread and triggered market routs across the globe. That took the total raised in its current financing round to just under US$3 billion, the company said in an internal memo obtained by Bloomberg.
Gojek’s new funding marks one of the largest deals to emerge since the novel coronavirus erupted in central China in January, exacerbating economic uncertainty and chilling deal activity the world over. It comes at a time investors have grown increasingly wary about tech valuations, underscored by SoftBank Group’s struggle to justify lofty price tags for erstwhile high-flyers like WeWork and Oyo. The Japanese investment giant – which isn’t a backer of Gojek’s – has funnelled about US$3 billion into Singapore-based rival Grab.
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“We’re not stopping there as we are still seeing strong demand among the investment community to partner with us,” co-chief executive officer Andre Soelistyo and Kevin Aluwi told employees in the internal memo. “There are a number of exciting ongoing conversations that we will be able to update you on very soon.”

Andre Soelistyo speaks during a Bloomberg event in Singapore on September 5, 2019. Photo: Bloomberg
Andre Soelistyo speaks during a Bloomberg event in Singapore on September 5, 2019. Photo: Bloomberg
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The new capital puts Gojek in a stronger position in any negotiations with Grab: Southeast Asia’s two most valuable start-ups have reportedly discussed a possible merger, although Gojek has denied those reports and said it’s got no plans for any sort of combination.

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