Facebook and PayPal invest in Indonesian lifestyle App Gojek
Facebook messaging platform WhatsApp and payment platform PayPal have invested in South East Asian payment, food delivery and ride-hailing app company Go-Jek - which owns Indonesia's largest mobile ticketing platform, Go-Tix.
While neither US group disclosed the amount they have invested, their participation Go-Jek’s ongoing financing round brings the total raised by Indonesian company to over US$3 billion.
According to a US regulatory filing, Facebook now owns a 2.4% stake in Go-Jek's Go-Pay fintech arm, while PayPal owns 0.6% of Go-Pay.
The move is focused on the start-up’s digital payments arm Go-Pay, with WhatsApp reportedly looking to integrate with the payments arm to support small businesses in the region.
Describing Go-Jek as being “indispensable”, WhatsApp Chief Operations Officer Matt Idema said in a blog post his company would work with Go-Jek to “bring millions of small businesses and the customers they serve into the largest digital economy in Southeast Asia.”
Idema continued “the majority of small businesses in Indonesia rely on cash to operate due to the country’s large unbanked population. Digital payments are safer than cash, both for businesses and customers. And digital payments help more people participate in the economy and give businesses access to credit which is crucial for business growth.
“I see the deal as the first step to building the infrastructure to expand Facebook’s payment and fintech businesses in the region.”
PayPal added that the partnership will enable it to “significantly grow” its scope and scale in Southeast Asia.
Go-Jek’s largest market is Indonesia, where its ride-hailing service operates in more than 200 cities and its Go-Pay service spreads across 370 cities, processing billions of transactions each year.
Clients include the Singapore Tourism Board while it also has a presence in Vietnam and Thailand.
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