Being a leading service provider in their segment, Facebook and PayPal both invested in Southeast Asia ride-hailing company ‘GoJek’. Before them, Google and Tencent are other high-profile technology companies that made investments on GoJek. It is the ride-hailing company that provides services of travel, food delivery, and mobile payments to deliver a one-stop solution for users. The company becomes highly popular among users of Southeast Asia and that’s why many largest tech companies start investing in it.
Facebook is the first investor on the Indonesia-based firm, whereas PayPal didn’t reveal about the size of their checks. GoJek told that Facebook and PayPal were interested in their continuing F-series funding round, taking the amount to more than $3billion. For Facebook, which invested in Reliance Jio Platforms, India’s leading telecoms operator, in April, GoJek’s support opened up a similar opportunity: to help millions of small enterprises find a business model for WhatsApp, a publicity free instant message service that is used by over 2 billion users.
Matt Idema, head of the WhatsApp operations, said the firm would partner with GoJek to put millions of small companies and consumers into the biggest digital economy in Southeast Asia. The large unbanked population is responsible for most of the small enterprises in Indonesia which depend on cash. For businesses as well as customers, digital payments are safer than cash. He also wrote in a blog post that digital payments help to expand competition in the market and provide businesses with access to credit that is critical to business development.
For Facebook, Indonesia is one of Asia’s largest markets. The Social Juggernaut had discussions to start a mobile payment service in the country with local fintech companies in April. Today, Facebook says the investment would fund the shared aim of Facebook and GoJek to motivate and encourage financial inclusion throughout the archipelago. PayPal, which invested in money lenders Tala in India in the last year, said that this trade agreement allowing the global payment giant to “definitely extend” the reach and size of the company’s launch in Southeast Asia.
This new partnership is a positive step forward on our path towards being the world’s leading payment partner and helping accelerate global trade, PayPal said in an announcement. GoJek, which revealed that in March it brought up $1.2billion and was worth approximately $10billion to employees, said that over 170million users in Southeast Asia had gathered. At the moment it had earned nearly $3billion over the years, the firm investing in Singapore’s heavy-backed Grab Headquartered.
In a statement last year, Andre Sobelistyo, who was appointed Co-Chairman of GoJek, said that we had an opportunity to achieve something truly unique in order to help more enterprises digitize and ensure that millions of more consumers benefit from the benefits the digital economy can bring. In October last year, GoJek’s founder Nadiem Makarim resigned from his top position in the company to join the Indonesian firm.