Go-Jek, the Southeast Asia ride-hailing company, raised a little more than $1 billion in a recent round of fundraising.
Bloomberg, citing a person with knowledge of the financing, reported the funding came from Google, JD.com and Tencent. With the latest fundraising round, Go-Jek has a market valuation of around $10 billion. Other investors who participated in the Series F fundraising round include Mitsubishi Corp. and Provident Capital, noted Bloomberg, citing a statement from Go-Jek, which wouldn’t provide financial details of the fundraising. Go-Jek also declined to comment on its valuation to Bloomberg, noted the report.
Proceeds from the capital raise are expected to be used to expand the company. According to Bloomberg, Go-Jek is taking on rival Grab in everything from food delivery to digital payments. Go-Jek entered the digital payments market in the Spring of 2016 and by January of 2017, it said Go-Pay accounted for more than half of its transactions. At the time the company said it was surprised by the quick adoption of Go-Pay. Since then Go-Jek has expanded its services and the markets it operates in.
Go-Jek plans to use the cash to increase its position in Indonesia, where it is leading, and to enter new markets around the region. In 2018 Go-Jek raised more than $3 billion, noted the Bloomberg report.
In late November Go-Jek expanded into Singapore, launching its services to a limited number of consumers before expanding it to the general population in the country. The move into Singapore comes after Go-Jek expanded into Vietnam and Thailand. The company said at the time that it would rely on promotions to drum up interest in Singapore. G0-Jek and its rival Grab are among the most valuable startups in Southeast Asia. In December reports surfaced that Grab could raise $1 billion from Softbank’s Vision Fund. Grab raised $2.7 billion in funding in 2018 alone and overall has raised $6 billion from investors.