Amid the ongoing economic disruptions and the global effects of the viral epidemic, Indonesia-based ride-hailing giant Gojek was still able to raise around $1.2 billion in its latest funding round. The Southeast Asian firm aims to use the funds for its expansion and as fuel for its ongoing battle with its rival Grab Holdings Inc.
The company managed to complete its latest financing efforts last week as the global market continued to experience a massive rut amid the ongoing viral epidemic. According to an internal memo sent by the company this week, the successful funding round brought the company's total raised funds close to $3 billion.
Gojek did not immediately disclose who its investors were, but reports have claimed that one of its investors was likely US retail giant Amazon. Previous reports had claimed that Amazon was in talks with the company to join its funding round. However, it isn't yet clear if Amazon pushed through with its plans and actually made investments.
The amount that the company was able to raise is one of the largest deals ever made since the start of the epidemic in January. While other companies have attempted to raise funds during the crisis, none have come close to Gojek's figures. The epidemic has greatly increased economic uncertainly all over the world, resulting in a decline in fundraising and M&A deals.
Global economic uncertainties have also left investors increasingly wary about tech valuations, sentiments that were initially set by the recent failed investments made by companies such as Softbank.
Gojek's co-chief executive officers Andre Soelistyo and Kevin Aluwi told employees in an internal memo that the company is still adamant in meeting the strong demand for its services. The two executives added that there are still a number of other exciting deals that are being made and that they will be updating everyone very soon.
The new capital raised by the company will be placing it in a very good position in future negotiations with its rival Grab, which is currently backed by Softbank. Previous reports had claimed that the two companies, the largest startups in the region, are considering a possible merger. Gojek had denied the rumors and stated that it had no intention of joining forces with its rival.
Even without the merger, the added capital would still allow Gojek to have a stronger position in future deals such as asset swaps and partial takeovers. Within Southeast Asia, both companies have expanded well beyond their core ride-hailing business and are fiercely competing in offshoot businesses such as food delivery and online payments.
