Go-Jek raises $1b in first close of Series F round

The company is approaching decacorn status.

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Go-Jek raises $1b in first close of Series F round

Indonesia’s on-demand giant Go-Jek had finalised the first close of its Series F funding, led by existing investors including Google, JD.com, Tencent, Mitsubishi Corporation and Provident Capital.

Although no financial details were disclosed, local media reported that Go-Jek raised approximately IDR 12.9 trillion (US$1 billion). The news confirms KrASIA’s coverage last September that suggested Go-Jek was seeking funds that would bring the company’s valuation to nearly US$10 billion. The fresh investment brings Go-Jek closer to decacorn status, a title that only its fiercest competitor, Grab, holds in Southeast Asia.

Originally launched as a ride-hailing platform, Go-Jek has grown quickly and expanded across multiple verticals, including transport, food delivery, mobile payments, logistics, and merchant services, making the company an industry leader in Indonesia. “Our vision has always been to build something truly beneficial for Indonesia and to use technology to create positive social impact,” said CEO Nadiem Makarim in an official statement.

Makarim added that Go-Jek currently operates in 204 cities and regencies across five countries, with over 2 million drivers and 400,000 merchants offering their services on the platform.

Go-Jek’s diversification has led to triumphs. Go-Food is now Southeast Asia’s largest food delivery service, while Go-Pay is the leading mobile payment platform in Indonesia. “This latest round of fundraising speaks to the confidence investors have in the team’s ability to execute our vision,” Makarim said.

Along with the funding announcement, Go-Jek also reported that, at the end of 2018, its annualised gross transaction value (GTV) across all markets reached over US$9 billion, with Go-Pay processing US$6.3 billion of that amount, and Go-Food taking up US$2 billion. In all, the company facilitated 2 billion transactions in that year.

Go-Jek will utilise its new mega-funding to accelerate services across its divisions, as well as support its expansion in Southeast Asia, following its entry into Singapore, Vietnam, and Thailand.

Go-Jek’s performance in those new markets has exceeded its expectations. For instance, in Vietnam, Go-Viet held onto an estimated 40% of the two-wheeled transport market just three months after launching in August 2018, and Go-Viet’s food delivery service is gaining ground in Ho Chi Minh City and Hanoi. In Singapore, Go-Jek’s service is now available across the island, and is open to the general public.

Editor: Brady Ng