Go-Jek Backers Said to Offer $1 Billion Funding After Uber Exit

(Bloomberg) -- Go-Jek, the Indonesian ride-hailing provider, has been offered at least $1 billion of new funding from existing investors eager to accelerate its overseas expansion, people with knowledge of the matter said.

Current backers including Tencent Holdings Ltd., China’s biggest internet firm, and Warburg Pincus have informally discussed providing more funding to ensure Go-Jek’s first forays outside its home market are successful, according to the people. Go-Jek hasn’t decided whether it wants the additional capital, the people said, asking not to be identified because the information is private.

New investors may also decide to participate if Go-Jek proceeds with the fundraising, the people said.

The Jakarta-based startup recently raised funds from investors including Google, Singapore state investment company Temasek Holdings Pte and Chinese online shopping giant JD.com Inc. Go-Jek’s latest funding round brought in about $1.5 billion of new capital and valued the company at roughly $5 billion, Bloomberg News has reported.

Go-Jek said last month it will invest $500 million to expand its ride-hailing and other services to Vietnam, Thailand, Singapore and the Philippines, taking advantage of Uber Technologies Inc.’s pullout from Southeast Asia to expand. That move will pit Go-Jek directly against larger rival Grab Inc., which is also growing its presence after buying Uber’s business in the hotly contested region of more than 600 million people.

Deliberations are at an early stage, and no final decisions have been made, the people said. Representatives for Go-Jek, Tencent and Warburg Pincus declined to comment.

Go-Jek, led by Chief Executive Officer Nadiem Makarim, started as an app to book motorbike taxis. It’s since added services that allow users to pay bills, order food and buy movie tickets.

The company’s app has been downloaded more than 60 million times in Indonesia, according to a press release last month. Go-Jek has more than 900,000 registered drivers in the country and facilitates more than 100 million transactions per month.

©2018 Bloomberg L.P.

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