Indonesia’s Go-Jek is planning to raise $2 billion from investors to fuel its ride-hailing battle with Grab in Southeast Asia.
Go-Jek raised $1.5 billion earlier this year from investors that include Chinese trio Tencent, Meituan and JD.com, as well as Google, Allianz and Singapore sovereign fund Temasek. Now it is planning to raise a further $2 billion, two sources with knowledge of details told TechCrunch, as it seeks to expand on numerous fronts.
Those plans include both extending the scope of its services in Indonesia — where beyond rides it offers services on demand and financial products — and moving into new markets. The company recently went live in Vietnam, its first expansion, and it has plans to enter Thailand, the Philippines and Singapore this year.
Bloomberg first reported the fundraising plans, although a source told TechCrunch that the deal is far from being done. Existing investors — which also include KKR and Warburg Pincus — are likely to provide the new capital.
Word of Go-Jek’s financing plan comes after Grab raised $2 billion this summer, including a $1 billion contribution from Toyota. The Singapore-based company — which bought out Uber’s business earlier this year — recently said it plans to raise a further $1 billion before 2018 is out.
That money is likely to be spent on Grab’s ongoing strategy to broaden into services. That’s seen Grab follow Go-Jek’s lead and move into groceries, on-demand services and fintech as part of a desire to be Southeast Asia ‘super app’ for a broad range of local services.
Grab is also doubling down on Indonesia, where it recently announced plans to invest $250 million in local startups. While Go-Jek is largely seen as the dominant player in Indonesia, which is Southeast Asia’s largest economy and the world’s fourth most populous country, Grab claims to handle 65 percent of all rides and transactions in the country.
Go-Jek’s most recent valuation was $5 billion. Investors valued Grab at $11 billion when its recent round closed in August.