Gojek raises $1.2 billion to take on Grab

Gojek

In the midst of the Coronavirus pandemic, Southeast Asian ride-hailing giant, known for its motorcycle-hailing business, Gojek, said it has raised $1.2 billion.

The new fundraising is to be used to fund an expansion campaign that will see Gojek take on its bigger rival, Grab Holdings Inc.

However, Gojek would have raised up to $3 billion but its fundraising campaign was very much impaired as the Coronavirus escalates around the Southeast Asia region.

“We’re not stopping there as we are still seeing strong demand among the investment community to partner with us,” co-chief executive officer Andre Soelistyo and Kevin Aluwi told employees in the internal memo. “There are a number of exciting ongoing conversations that we will be able to update you on very soon.”

“We announced a first close of $1 billion at the start of last year and we set ourselves a target to increase overall funds raised to $2.5 billion for the group by the start of this year,” Soelistyo and Aluwi said in the internal memo. “We have easily exceeded our target.”

The fundraising is coming at a time the likes of SoftBank Corp is struggling to justify its investment in WeWork and Oyo. It should be noted that SoftBank had invested heavily in Grab to the tune of $3 billion.

PT Aplikasi Karya Anak Bangsa, doing business as Gojek, was first established in Indonesia in 2010 as a call center to connect consumers to courier delivery and two-wheeled ride-hailing services.