Indonesia’s most-valuable tech start-up Go-Jek in talks to raise at least US$2 billion in funding
Go-Jek is building up its arsenal to expand in Southeast Asia and fight Singapore-based rival Grab, which bought Uber’s business in the region
Go-Jek, Indonesia’s most valuable technology start-up, is in talks to raise at least US$2 billion to fuel an accelerated expansion overseas, according to a person with direct knowledge of the matter.
The Jakarta-based company plans to close the funding round in several weeks, the person said, asking not to be identified because the information is private. The start-up’s existing backers include Tencent Holdings,Temasek Holdings and Warburg Pincus.
Go-Jek is building up its arsenal to expand in Southeast Asia and fight Singapore-based rival Grab, which bought Uber Technologies' business in the region and has said it’s on track to raise US$3 billion in fresh capital this year. The Indonesian company got its start with ride-hailing and has since added a range of on-demand services that lets users pay bills, order food and buy movie tickets.
“There is an element of a land grab, not just in geography but also in different verticals, whether it’s delivery or payments, as everyone’s trying to put his stick in the ground,” said Kuo-Yi Lim, managing partner at Monk’s Hill Ventures in Singapore, which is not an investor in either company. “There’s also a bit of an arms race going on” in capital raisings between the two rivals.
A Go-Jek representative declined to comment.