PYMNTS-MonitorEdge-May-2024

Go-Jek Notches $100M In Series F Investment

Go-Jek Notches $100M In Series F Investment

As Indonesian ride-hailing company Go-Jek seeks to grow regionally, the firm notched a $100 million in funding from existing investor Astra. The investment was said to be part of the company’s current Series F round, according to reports.

The funding is reportedly to help the company grow its offerings in Southeast Asia. Go-Jek rival Grab, however, recently took in $2 billion in funding via a Series H round, and is working to bring that investment up to $5 billion. But Go-Jek’s deal also includes another component beyond funding.

Astra, which focuses on the automotive, infrastructure and manufacturing spaces, plans to have a joint venture with the ride-hailing firm. With such an arrangement, Go-Jek’s cars would come with a fleet management system from Astra. That launch is said to begin with “thousands” of drivers from Go-Car, and would reportedly help the firm manage its on-demand services as well as its fleet.

The news comes after it was reported that Go-Jek was seeking to take in $2 billion worth of funding as it takes on Grab, and the company was said to have closed on part of the round. Google, JD.com and Tencent, among the firm’s existing investors, reportedly plan to invest about $920 million in the company. The deal could indicate a roughly $9.5 billion value for Go-Jek, according to unnamed sources.

The ride-hailing market is set to become a $31 billion business by 2025, up from $8 billion last year, per a Google and Temasek report. The region, which has a population of more than 620 million, is seeing expanding internet access. At the same time, services like Go-Jek and Grab are growing beyond transportation to grocery offerings and payment services. Go-Jek, too, was preparing to launch a preliminary version of its ride-hailing app in Singapore last year.

PYMNTS-MonitorEdge-May-2024