Go-jek in talks to raise at least $2 billion

Tinuku - Go-jek, Indonesia’s most valuable technology start-up, is in talks to raise at least US$2 billion to fuel an accelerated expansion overseas, according to a source said. The company plans to close the funding round in several weeks.

The start-up’s existing backers include Tencent Holdings Ltd., Temasek Holdings Pte and Warburg Pincus. Go-jek is building up its arsenal to expand in Southeast Asia and fight Singapore-based rival Grab, which bought Uber Technologies Inc.’s business in the region and has said it’s on track to raise US$3 billion in fresh capital this year.

Tinuku Go-jek in talks to raise at least $2 billion

The Indonesian company got its start with ride-hailing and has since added a range of on-demand services that lets users pay bills, order food and buy movie tickets. Go-jek has turned to acquisitions in recent years to build a group of leaders overseeing different businesses.

Go-jek was founded in Jakarta and has been expanding beyond the Indonesian market it dominates. It began motorcycle hailing and courier delivery services in Hanoi on September 12 after a soft launch in Ho Chi Minh City. “Go-Viet,” its brand in Vietnam.

The app has been downloaded 1.5 million times in six weeks and 25,000 drivers have joined the platform. Go-Viet plans to roll out additional services such as car-hailing, food delivery and e-money services in a country that is home to more than 90 million people.

“Consumers need more choice and the market needs more competition to allow the industry to grow sustainably,” Go-jek Chief Executive Officer Nadiem Makarim said in a statement.

Go-jek’s planned expansion in Thailand, Singapore and the Philippines is on track, the company said. The Indonesian start-up’s last funding round brought in about US$1.5 billion of new capital and valued the company at roughly US$5 billion.

“We are building a strong bench who really want to make a change in Indonesia and in Southeast Asia as we expand,” Go-jek President Andre Soelistyo told a panel at the Milken Institute Asia Summit on Friday.