Go-Jek, an Indonesia-based technology company that specializes in ride-sharing, is planning to raise $2 billion in a new round of funding at a valuation of $9.5 billion. Existing investors Google, Tencent, and JD.com are believed to be involved in this round, according to TechCrunch’s sources.
This investment round is expected to be announced next week. And the funding will most likely be used towards expanding its presence in new markets.
Prior to this funding round, Go-Jek raised over $2 billion from investors, including a $1.4 billion round last year at a $5 billion valuation. Go-Jek started out with motorbike taxis and then expanded to four-wheelers, services on demand, and financial technology.
TechCrunch’s sources said that there are discussions about Go-Jek buying JD.com’s JD.id business at a value of more than $1 billion. JD.id provides delivery services for products ordered to 365 cities across Indonesia.
The ride-hailing market in southeast Asia is expected to grow from $8 billion in 2018 to $31 billion by 2025, according to a report by Google and Temasek. And Indonesia is expected to represent half of this figure.
Last year, Go-Jek expanded to Vietnam, Thailand, and Singapore. But it was denied an operating permit in the Philippines.
This is not stopping Go-Jek from making moves in the Philippines though. Last week, it was reported that Go-Jek acquired Philippines-based cryptocurrency and mobile payment company Coins.ph for a reported $72 million.
Another major deal for a ride-sharing company in southeast Asia involves Grab and Uber. Uber sold its southeast Asia arm to a local rival called Grab in exchange for a reported 27.5% stake valued at about $6 billion. Grab’s most recent round of funding was $3 billion in Series H.
Go-Jek says that it has more than 125 million downloads in Indonesia. And the company is used by over a million drivers and around 300,000 food merchants. Plus the service is being used to process 100 million transactions per month.