Visa Inc. the world’s biggest payments network announced that it has invested in Indonesia’s Go-Jek as part of the ride-hailing company’s ongoing Series F fundraising round but surprisingly Visa did not mention how much money it was investing in Go-Jek or how big a stake it would acquire.
This investment makes Visa Inc. the latest investor in ride-hailing giant Go-Jek as the two companies push digital payments across Southeast Asia.
The two companies will work together to provide more options for cashless payments for consumers across Indonesia and Southeast Asia, the U.S. payment processor said.
The move follows Go-Jek’s announcement this month it had secured funding from Thailand’s Siam Commercial Bank Plc, Mitsubishi Motors Corp., Mitsubishi Corp. and Mitsubishi UFJ Lease & Finance Co. The terms of that deal were also not disclosed.
Go-Jek, which debuted its app for hailing motorbike taxis in Jakarta in 2015, is expanding beyond Indonesia to cater to consumers across Southeast Asia, building an all-purpose consumer app similar to Tencent Holdings Ltd.’s WeChat in China. It’s valued at $10 billion according to CB Insights, and hosts more than 20 on-demand services on its platform from food delivery to digital payments.
The two companies have “a shared goal to bring formal financial services to the unbanked and underserved, including micro, small and medium businesses,” Visa Regional President Asia Pacific Chris Clark said in a statement. “We will explore ways to leverage the power of Go-Jek and Visa’s networks to expand financial access in Southeast Asia.”
Visa and Mastercard Inc. have teamed up with mobile startups in Southeast Asia in recent years, where the vast majority of transactions are still cash-based and the pace of adoption of digital payments is slow. Mastercard has partnered with Go-Jek rival Grab, while Visa has announced a partnership with gaming accessories maker Razer Inc.
