Go-Jek secures nearly $2b in commitments, to finalise new funding round next week

Go-Jek Indonesia office. Photo: Go-Jek

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 Tokopediathe 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.

Also read:

Go-Jek said to seek valuation of $9-10b with latest funding round

Indonesia’s Go-Jek marks Singapore entry with launch of beta app

Thai market poses unique challenges, says Go-Jek’s head of international expansion

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.