Gojek Gains $300 Million In Funding As It Moves Toward Big Merger

In the middle of negotiating a merger deal with Tokopedia, Gojek has reeled in $300 million in investment funds from state-owned mobile operator Telkomsel, Nikkei Asia reported. Gojek is already Indonesia’s largest private tech company.

It’s part of the battle to build “super apps” in an effort to keep consumers on a single website as they take part in online shopping or ride-hailing. The Gojek ride-hailing and payments platform and eCommerce firm Tokopedia are on track toward a merger that could be valued at as high as $40 billion.

Nikkei Asia said the new investment is part of the agreement Telkomsel formed with Gojek when the former invested $150 million in November, which came with an option of a new investment further down the line. Telkomsel — a joint venture between state-owned telco giant Telkom Indonesia and Singapore’s Singtel — could land a big windfall if a lucrative merger goes through.

Andre Soelistyo, co-CEO of Gojek Group, said the new investment from Telkomsel “will strengthen the collaboration between the two companies, enabling both of us to leverage our technological resources and expertise to bring the benefits of the digital economy to consumers, driver-partners and small businesses across Indonesia.”

Gojek and Tokopedia are competitors of Singapore-based Sea, which has expanded its market share with aggressive promotions. Gojek’s backers also include Facebook, which invested in the company’s payment arm, global private equity company KKR and Indonesian conglomerate Astra International.

After a completed merger deal, the combined company would become Indonesia’s biggest internet firm. Gojek and Tokopedia also have some common investors: Google, Temasek and Sequoia Capital India. In addition, Tokopedia is backed by Alibaba, China’s eCommerce powerhouse.

For its part, Southeast Asian ride-hailing giant Grab Holdings is looking to go public, a deal that could also hit $40 billion.

Both Tokopedia and Gojek said in March that they wanted to list shares on the Indonesia Stock Exchange (IDX). Gojek has been looking to expand beyond its current offerings and compete on an international stage.