Allianz confirms $35m investment in Indonesia’s Go-Jek

Go-Jek. Photo: Reuters

Allianz X, the digital investment unit of global insurance and asset management firm Allianz Group, on Wednesday announced a $35-million investment in Indonesian ride-hailing platform Go-Jek.

The investment, which marks Allianz X’s first investment in a Southeast Asian-headquartered company, makes it Go-Jek’s sole international insurance shareholder.

The investment from Allianz was part of Go-Jek’s $1.5-billion funding round raised from a dozen investors including Tencent HoldingsBlackRock, Temasek Holdings, Meituan-Dianping, and Google at a $5-billion valuation. The round was joined by local conglomerate Astra International and investment firm Global Digital Niaga.

“Allianz X’s strategic investment in GO-JEK underscores Allianz Group’s Renewal Agenda and our commitment to digital growth businesses, particularly in emerging markets,” said Allianz X CEO Nazim Cetin.

“GO-JEK is one of the largest digital unicorns in Indonesia and through this investment, Allianz and GO-JEK will strengthen their ties and collaboration further. Together we can offer unique financial products and services to the wider GO-JEK community,” said Allianz Life Indonesia President Director Joos Louwerier.

Established in 2010 as a motorcycle ride-hailing phone service, Go-Jek has evolved into an on-demand mobile platform and a cutting-edge app, providing a wide range of services that include transportation, logistics, mobile payments, food delivery, and many other on-demand services.

Its recently announced round of funding, which raised 25 per cent more fund than initially planned, is being allocated for a number of expansion plans.

Earlier this month, Reuters reported that Go-Jek is set to announce its first expansion to another country in Southeast Asia in the “next few weeks” and plans to expand to three other Southeast Asian countries by the middle of this year. Earlier this month, it had been reported that Go-Jek identified Singapore as one of the Southeast Asian markets it plans to expand to this year, along with the Philippines, Thailand, and Vietnam.

The startup, which is Indonesia’s first and largest unicorn, already holds a stake in Bangladesh’s ride-sharing app Pathao. It has also acquired three local financial technology companies to boost its position in Indonesia’s digital payments market.

For Allianz X, the investment in Go-Jek is its fourth so far in 2018. In its most recent deal, the investment firm co-led a Series C funding round of $160 million in European mobile bank N26.

Its holding company, Allianz, claims to be of the world’s largest investors, managing over 650 billion euros on behalf of its insurance customers while our asset managers Allianz Global Investors and PIMCO manage an additional 1.4 trillion euros of third-party assets.

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