Go-Jek, Indonesia’s most popular ride-hailing application company, has acquired e-payment startup MVCommerce, media reports said. MVCommerce is the owner and operator of mobile payment service PonselPay.
“We have reached a strategic agreement with Go-Jek to unite our strengths, in our efforts to support Indonesia’s financial inclusivity program,” MVCommerce CEO Hendra Sutandinata was quoted as saying to Tech in Asia.
Sutandinata declined to reveal the exact value of the acquisition. He also remained tight-lipped about the kind of product or service the two companies will work on.
MVCommerce was founded in 2002 by veterans of the US and regional banking and technology industries with the mission of helping reduce poverty through improved access to financial services.
The Jakarta-based company claims that it enables banks to “break free” from product paradigms and limitations of technology that are mostly derived from developed countries.
It wants to securely and reliably make use of mobile networks to extend their service reach and create products to profitably serve various segments of the population base. One of their services, PonselPay, allows customers to perform mobile transactions via text messaging.
Meanwhile, Go-Jek has been on buying mode since it received $550 million in funding from KKR and Warburg Pincus. In September, the company acquired a Bangalore-based home healthcare services marketplaced called Pianta for an undisclosed amount.
The acquisition is expected to help fast track the development of Go-Jek’s logistics and transportation platforms to support its fast-growing Indonesia operations. The firm has said that it is moving to launch an on-demand healthcare product, which might have on demand delivery and logistics issues.
Last week, Go-Jek’s brand director and co-founder Michaelangelo Moran announced his decision to quit, following in Alamanda Shantika’s footsteps to leave the startup. Shantika announced her departure last month after two years serving as head of engineering team.
Go-Jek has been facing stiffer competition from Singapore-based transportation service app Grab, which has raised $1.5 billion till date, and is making a major push into Indonesia. Grab is targeting to grow its market share in Indonesia to 50 per cent this year.