Indonesian ride-hailing startup Go-Jek is in talks with investors to raise a US$1 billion-worth of funding, according to a Wall Street Journal report citing anonymous sources familiar with the process.
The Jakarta-based startup is looking to raise capital at a US$2 billion pre-money valuation.
Go-Jek is said to plan to use the new funding to fuel regional expansion to Southeast Asian countries such as the Philippines, Thailand, Myanmar, and Vietnam.
Previously, in August 2016, Go-Jek has raised US$550 million from investors such as KKR, Warburg Pincus, Farallon Capital, and Capital Group Private Markets. It has also been reported to gain the interest of Chinese internet giant Tencent to invest in them.
Despite regulatory hurdles, ride-hailing business and related services such as food delivery and instant courier remain a lucrative sector in Southeast Asia. A Google and Temasek Holdings report released in 2016 predicted it to grow 18 per cent annually, reaching a market capitalisation of US$13 billion by 2025.
Ride-hailing startups have also begaun to branch into fintech by building and promoting their own cashless payment system. Go-Jek continues to develop its e-wallet service Go-Pay; Go-Jek CMO Piotr Jakubowski told Dealstreet Asia that it is among the leading digital wallets used in cash-heavy Indonesia.
Meanwhile Grab has recently confirmed the acquisition of Indonesian O2O e-commerce platform Kudo as part of its mission to strengthen financial inclusion.
As Go-Jek’s direct competitor, in March Grab has also been reported to raise another US$1.5 billion from current investor SoftBank Group.
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