According to recent reports, Indonesian ride-share company Go-Jek has raised a new $1.2 billion round of corporate funding. This round comes on the heels of a $1.5 billion Series E raised by the company in February of this same year. To date, the company has reportedly raised more than $3.3 billion in funding.
Go-Jek: The Google and Tencent Darling
As a competitor of Uber, Go-Jek operates a fleet of ride-sharing motorcycle taxis in and around Jakarta, Indonesia. After having been identified by Google as a company to help add to Indonesia’s growing digital economy, the tech-giant reportedly contributed to both the massive $1.5 billion Series E, as well as the most recent corporate round. Both recent rounds are reported to have been lead by Chinese tech-giant, Tencent.
The Right Region for an Investment
Google’s interest in Go-Jek comes in response to Google’s ‘Next Billion Users’ initiative. This initiative has identified Indonesia as a keep target in acquiring Google’s next billion users around the globe. In response to Google’s interest in Go-Jek, Google Vice President, Caesar Sengupta remarked, “Go-Jek is led by a strong Indonesian management team and has a proven track record of using technology to make life more convenient for Indonesians across the country.” In commenting further about the investment Sengupta responded, ‘This investment lets us partner with a great local champion in Indonesia’s flourishing startup ecosystem, while also deepening our commitment to Indonesia’s internet economy.”
Stiff Competition as Money Comes Into the Region
The Google-back Go-Jek is not the only competitor in the space, however. The largest competitor in the market is a Singapore-based company called, Grab. In July of last year, Grab was backed with a $2 billion investment by SoftBank’s Vision Fund. This round brought SoftBank’s investment in Grab to more than $2.75 billion. Since that time, Grab has also managed to raise another $2.9 billion in funding – including two separate $1 billion rounds both led by the Toyota Motor Corporation. To date, Grab has reportedly raised more than $6.6 billion in funding.
If the deal closes as expected the new round will reportedly give Go-Jek a valuation of $9 billion.