Tencent Has Invested Up To $150 Mn In Indonesia’s Go-Jek: Sources

Tencent is rumoured to have invested around $100 Mn to $150 Mn in Indonesian ride-hailing startup Go-Jek’s latest round raised in May 2017. Undisclosed sources have reported the same to Reuters. In May, Go-Jek has reportedly raised $1.2 Bn in a funding round led by Chinese Internet company Tencent, reported Tech Crunch. Post the investment, Go-Jek is now valued at $3 Bn.

Neither Tencent nor Go-Jek have confirmed these claims.

Tencent’s investment comes on the back of the Chinese tech giant’s efforts to tap into growth in Southeast Asia’s mobile-based services. Tencent is China’s largest social media and online entertainment firm and this investment is in the footsteps of many of China’s tech companies looking to be part of Southeast Asia’s growth opportunities.

In May this year, Tencent invested in the $550 Mn funding round of Singapore-based gaming and ecommerce startup Sea, formerly known as Garena.  Similarly, Chinese ecommerce giant Alibaba recently increased its stake in ecommerce firm Lazada from 51% to 83% by investing $1 Bn. Meanwhile, Alibaba’s domestic rival JD.com is also rumoured to be in talks with Indonesia’s online marketplace Tokopedia for a possible investment.

Meanwhile, as per sources, Go-Jek, aims to close the current funding round in this year’s third quarter.

Founded in 2011 by Harvard graduate Nadiem Makarim, Go-Jek began as a bike-taxi service. It later on diversified into food, courier, and grocery delivery verticals. It is the on-demand motorbike taxi service that rivals Uber and Grab in Indonesia. Go-Jek claims to offer 200,000 motorbike drivers — known as “ojeks” in Indonesia. The company’s services include hailing motorbike taxis on demand. In addition to regular rides, Go-Jek offers on-demand services like food, shopping, and package deliveries.

Go-Jek counts global private equity firms KKR & Co LP, Warburg Pincus LLC and venture capital firm Sequoia Capital as its investors.  In October 2015, it raised an undisclosed amount from DST Global, NSI Ventures, and Sequoia Capital. Following that, in August 2016, it raised $550 Mn in a round led by KKR & Co. and Warburg Pincus. Other investors in the round were existing investors and Capital Group, Farallon Capital Management, Formation Group, Northstar Group, and Rakuten. While Tencent remains a major investor in the company, it remains to be seen which other big ticket names will occupy the stage in the latest Go-Jek fundraise.

(This development was first reported by Reuters.)

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