Go-Jek confirms $150m investment by Astra, ‘substantial’ funding by GDN

Ilustrasi Gojek/ GO-JEK. REUTERS/Beawiharta

Indonesian ride-hailing firm Go-Jek confirmed on Monday that it has secured a $150-million funding from local conglomerate Astra International as well as an undisclosed amount of financing from investment firm Global Digital Niaga (GDN) as part of its latest funding round.

In a joint press conference on Monday, Go-Jek and Astra International officially announced the latter’s investment in the startup.

“We are proud to support a national champion like Go-Jek which has a social mission to improve the welfare of the people of Indonesia,” said Astra International president director Prijono Sugiarto.

In a separate media event just hours later, GDN, a unit of GDP Venture that is more popularly known for its flagship e-commerce firm Blibli, announced an undisclosed but “substantial” investment in Go-Jek. GDN CEO Kusumo Martanto said that he hoped the partnership with Go-Jek would help empower the country’s SMEs.

“There are a lot of similarities between GDN and Go-Jek that can be collaborated in order to open a bigger access for small medium and micro-enterprise players to participate in the development of the digital economy,” he said.

Go-Jek founder Nadiem Makarim, who was present at both events, thanked the two companies whose investment in the ride-hailing firm mark their biggest investments to date.

The collaboration with GDN is expected to help Go-Jek reinforce its position in the fields of payments and logistics, as well as allow it to explore more opportunities related to e-commerce. The involvement of Astra, meanwhile, will enable Go-Jek to possibly venture into fields like leasing, distribution, insurance, and even allow the startup to expand geographically to the province of Papua, where Astra is already well-established.

The investment by both local companies is part of the latest fundraising round of Go-Jek, which includes investments from Alphabet Inc’s Google, Singapore state investor Temasek Holdings Pte Ltd and Chinese online platform Meituan-Dianping, raising about $1.2 billion in total.

When asked about what the proceeds will be used for, Nadiem was evasive.

“Various kinds of innovation in 2018 that will allow us to continue to grow. If it’s not a surprise, then it wouldn’t be Go-Jek, would it?” he said.

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