Indonesian Ride-hailing Giant Go-Jek Picks Up $100 Million Funding From Astra International
The strategic partnership will maximize Indonesia's potential to continue to be at the forefront of Southeast Asia's digital transformation
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Indonesian unicorn Go-Jek keeps on grabbing headlines every month. The company last month announced a Series F funding led by Google, JD.com, and Tencent, with Mitsubishi Corporation and Provident Capital. Since then, the ride-hailing giant has been on a roll.
Go-Jek has recently announced a joint venture with Indonesian conglomerate Astra International, to enable more drivers to join the four-wheel ride-hailing sector and participate in country's rapidly growing digital economy.
Unlocking the Potential
Astra has also invested $100 million in the first closing of Go-Jek's Series F fundraise. The company made its first investment in Go-Jek through the Series E fundraise in 2018 and this additional investment brings its total investment in Go-Jek to $250 million.
Commenting on the investment, Nadiem Makarim, chief executive officer and founder of Go-Jek said, "Industry players must join forces to maximize the great potential of the Southeast Asian digital economy, especially in Indonesia. The combination of Astra's strength in the automotive sector and Go-Jek's leading technology will open up more opportunities for people to grow their incomes and improve their welfare."
Fostering Economic Growth In Indonesia
Indonesia's internet economy is the largest and fastest growing in the region. Growing at a compound annual growth rate (CAGR) of 49 percent from 2015-2018, it is projected to reach $100 billion by 2025 from $27 billion in 2018. The strategic partnership will maximize Indonesia's potential to continue to be at the forefront of Southeast Asia's digital transformation.
Prijono Sugiarto, President Director of Astra International said, "The establishment of this joint venture and Astra's participation in Go-Jek's Series F fundraise demonstrate our continued confidence in the company and is a tangible manifestation of our collaboration to explore the synergies between Go-Jek's technology and Astra's automotive business. We hope this collaboration can help more people generate income, as this will improve their welfare and have a positive impact on Indonesia's economic growth. This is in line with Astra's aim to prosper with the nation."
Creation Of A Fleet Of Several Thousand Cars
Launched in January 2015, Go-Jek is now a major player in Southeast Asia for digital and mobile consumption. The company has evolved into a super-app, which acts as a transactional ecosystem connecting millions of customers on its platform to millions of drivers, merchants, and service providers.
The joint venture partnership between Astra and Go-Jek will operate a fleet of several thousand cars, pre-installed with Astra's fleet management system (FMS) and supported by ride-hailing technology in the Go-Jek app, specifically for Go-Car. This company will provide opportunities for partners to provide online door-to-door transportation services with excellent quality to customers while at the same time improving their income through Go-Car services.