Go-Jek Reportedly Seeking Additional Funds US$ 1.5 Billion to Compete Uber and Grab

Pic Credit: Tribun News

 

Jakarta-based startup provides on-demand service Go-Jek reportedly is seeking new funding worth US $ 1 billion, or approximately Rp 13.2 trillion, when referring to the exchange rate of Rp 13,200 per US$ 1.

According to the Wall Street Journal report on Monday (17/4), according to some sources, the funds will be used by Go-Jek to compete with the two main competitors Uber and Grab. Both have introduced the motorcycle-based similar transport services. Go-Jek has continued to diversify with services ranging from food delivery Go-Food, to the payment of peer-to-peer Go-Pay. Go-Jek is said to plan to use the new funding to fuel regional expansion to Southeast Asian countries such as the Philippines, Thailand, Myanmar, and Vietnam.

Even Grab Indonesia has launched a program Grab for Indonesia until 2020. Grab’s investor Softbank Group also provide additional funding of up to US$ 1.5 billion last month. One of them is to create a research center and four developers in Indonesia. Grab recently also confirmed the acquisition of Indonesian O2O Kudo e-commerce platform as part of its mission to strengthen financial inclusion.

Uber, whose valuation of nearly $68 billion makes it the world’s most valuable startup, also offers motorcycle bookings in Indonesia, as does Grab, officially known as GrabTaxi Holdings Pte Ltd.

With the funding, the pre-money valuation of Go-Jek will to US$ 2 billion, or more than Rp 26 trillion. A pre-money valuation refers to the value of a startup before fresh funds are included. Go-Jek raised around US$ 550 million in August at an undisclosed valuation.

Previously, in August 2016, Go-Jek has raised US$ 550 million from investors such as KKR, Warburg Pincus, Farallon Capital, and Capital Group Private Markets. It has also been reported to gain the interest of Chinese internet giant Tencent to invest in them.

Marketing in Sports

A month ago, Go-Jek announced a partnership with PT Liga Indonesia Baru. Through this partnership, Go-Jek will be the title sponsor of the Liga 1 which is a top-level professional football league in Indonesia for the 2017 tournament season, along with other sponsors Traveloka. The sponsorship value by both company is worth Rp 180 billion.

CEO of Go-Jek Nadiem Makarim said with Go-Jek present as the sponsor for Liga 1 the company hopes the Indonesian football can revive and continue to grow for the sake of the name of Indonesia amid international level.

 

Go-Jek Traveloka Liga 1 / Doc Go-Jek

 

Go-Jek through its application provides the facility to the football fans who want to watch live in the stadium. Some services that will support the implementation of the Liga 1 by Go-Jek is a Go-Pay as a payment partner, Go-Ride and Go-Car as transportation partners, and Go-Tix as an official partner match ticket seller.

“Only with a single application, a variety need of people to watch Liga 1 matches can be fulfilled,” said Makarim.

So far is still rare tech companies that do marketing in Indonesian sports industry. But the most famous one is Blibli in Indonesian badminton. If Go-Jek get additional funding, it is very interesting to see marketing step by company.

Robin Dwi Nugroho

Startup and sport enthusiast

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