Indonesian ride-hailing unicorn, Go-Jek, has commitments of close to $2 billion for its latest investment round at a valuation of nearly $10 billion, people familiar with the matter said.
The Google, Tencent and JD.com-backed ride-hailing giant has set an internal deadline of next week to close this investment round, the people added.
According to one of the executives, the Go-Jek team was seeking to raise $1.5 billion at a pre-money valuation of $7.5 billion, indicating that the ongoing round is oversubscribed.
“The appetite was much greater than expected. Go-Jek has sent an internal deadline of December 10. The process should be completed by December 14,” this person said, adding that post the deadline, the ride-hailing startup will take a call on the quantum of capital that will be part of this investment round.
Go-Jek, which had been negotiating the terms of its latest funding round for the last six months, has all its major existing investors – Google, Tencent, JD.com and Meituan-Dianping – among others, to double back on it, one of the people said.
When contacted, a Go-Jek spokesperson said the “company does not comment on rumours and speculation”.
The latest round nearly doubles Go-Jek’s valuation in under a year, making it Indonesia’s most valuable startup, ahead of PT Tokopedia, the country’s largest online marketplace, which recently raised $1 billion from its existing investors, including SoftBank, at a $7 billion valuation.
The fresh capital will provide the ride-hailing startup much-needed ammunition for its overseas expansion, as it takes on its arch-rival Grab, which has operations across Southeast Asia.
In the last three months, Go-Jek has expanded into Vietnam, Singapore, and is on track to roll out services in Thailand by end-2018. Its entry into the Philippines hit a roadblock in September after the country’s transportation authority rejected the company’s application. No further progress has been reported on this market so far.
Go-Jek’s new round will also narrow the valuation gap with Grab, which is in the midst of closing a $3-billion plus round. Grab was valued at $11 billion after raising $2 billion in fresh capital earlier this year, making it Southeast Asia’s first decacorn. With another $1 billion to be raised, its valuation is set to cross $12 billion.
Last week, DEALSTREETASIA exclusively reported that payments processor PayPal was in advanced talks to participate in Grab’s ongoing $3-billion Series H funding round, adding that if the discussions go through, the Singapore-based company may end up topping $3.2 billion by the end of this year.
Grab president Ming Maa first revealed Grab’s $3-billion fundraising target in September, after pocketing $2 billion from investors like Toyota and OppenheimerFunds.
Since then, the Singapore-headquartered company has secured investments from Microsoft, Booking Holdings, Hyundai Motor, Kasikorn Bank and United Overseas Bank (UOB). According to DEALSTREETASIA‘s calculations, the total amount raised so far is about $2.75 billion.
Both Grab and Go-Jek are set to announce their funding rounds in the next couple of weeks.
The ride-hailing majors have been on the road seeking hundreds of millions from existing and new investors as they race to be Southeast Asia’s “super-app”, a concept that Go-Jek had first championed.
Strategic and financial investors have committed billions into both ride-hailing giants as they vie for a piece of Southeast Asia, home to 600 million people, and is among the fastest growing internet markets globally.