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Go-Jek reportedly raising US$2 billion round

New transportation licensing moratorium hampers Go-Jek’s expansion plan to the Philippines

The news comes on the heels of Grab President Ming Maa said the company wants to wrap up another US$1 billion before the end of year

Indonesian ride-hailing giant Go-Jek is said to be raising US$2 billion to scale its international expansion, according to a report from Bloomberg.

The round is expected to officially close in a matter of weeks.

Go-Jek had previously set aside US$500 million for its first expansion efforts outside of Indonesia.

The news comes amid a period of immense movement in Southeast Asia’s ride-hailing industry.

First, Go-Jek’s international expansion ramped up last week with the official launch of Go-Viet in Hanoi.

According to Bloomberg, in the six weeks since Go-Viet’s soft launch in Ho Chi Minh City, the app has been downloaded 1.5 million times with 25,000 drivers on board.

Then, Grab President Ming Maa said the company is working to raise another US$1 billion for Southeast Asia regional expansion. If they close the deal, it will bring Grab’s 2018 total funds raised to about US$3 billion.

Also, Go-Jek pivoted its grocery shopping service, Go-Mart, and Grab claimed it had 65 per cent of the Indonesian ride hailing market.

Also Read: Grab in talks to raise another US$1B for expansion in Southeast Asia

In the immediate aftermath of Grab’s purchase of Uber in Southeast Asia, the direct confrontation with Go-Jek took a backseat to regulatory concerns over the Uber deal.

In the past month, the battle for supremacy in Southeast Asia between Go-Jek and Grab seems to have ramped up.

The last funding round valued Go-Jek at US$5 billion, according to Bloomberg.

Also Read: Singapore govt to launch US$18M quantum engineering programme and local startup database

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