Southeast Asian ride-hailing and food delivery giant Grab has led a Series B investment round in the Indonesian digital payments firm LinkAja.
Grab, along with existing investors PT Telekomunikasi Selular (Telkomsel), BRI Ventures, and Mandiri Capital, committed a total of around $100 million in the round, according to a statement on Tuesday.
LinkAja issued 13,632 shares, with a price per share of Rp10 million in the latest round, DealStreetAsia has learnt. Grab will own 5.7 per cent shares in LinkAja.
Upon the completion of the Series B round, Telkomsel remains the biggest shareholder with a total of 25 per cent LinkAja shares. It is followed by Mandiri Capital (16.3 per cent), the investment arm of the Bank Mandiri Tbk; and BRI Ventures (13.2 per cent).
This is LinkAja’s first investment from a private company. Previously, it had secured funds from eight Indonesian state-owned enterprises (SOEs). The fresh proceeds will be utilised to accelerate LinkAja’s growth.
LinkAja started operations in June 2019 through the integration of some state-owned companies. The firm focuses on middle-class consumers and Indonesia’s Small and Medium Enterprises (SMEs). Currently, it has more than 58 million registered users, with more than 80 per cent of them located in second-tier and third-tier cities in Indonesia.
Haryati Lawidjaja, CEO of LinkAja said that the company is very enthusiastic to rope in Grab as a shareholder. “We believe this strategic partnership can strengthen LinkAja’s services. We will open the collaboration opportunity for investors and other partners who have the same vision and mission,” Lawidjaja said in the press statement.
The strategic investment from Grab could help increase financial inclusion for Indonesians.
“Cash is still the main [mode of] transaction in the country, and there are millions of Indonesians not reachable through the traditional banking system. We chose to invest in LinkAja because we can accelerate the mission of financial inclusion in Indonesia. The strategic collaboration between LinkAja and our digital ecosystem, including OVO and Tokopedia, will support us to provide cashless services, which is comfortable, accessible, and secure,” said Neneng Goenadi, managing director at Grab Indonesia.
Previously, DealStreetAsia had reported that LinkAja was working towards a Series B fundraising round, which will see more investors in the company besides the SOEs. Gojek and Grab were seen as potential investors in the round.
Lender BNI, investment manager PT Danareksa, oil and gas firm Pertamina, toll operator PT Jasa Marga Tbk, railway operator PT Kereta Api Indonesia, and insurer Jiwasraya also hold an interest in LinkAja.