Facebook and PayPal have made investments in Gojek, a Southeast Asian ride-hailing startup also offering food delivery and mobile payments.
Facebook and Paypal will be participating in the ongoing Series F financing round to raise to over $3 billion. However, the two companies did not disclose the amount of investment in the project.
As of March 2020, Gojek disclosed it had raised $1.2 billion to employees and was valued at about $10 billion. The company also confirmed it has amassed over 170 million users in Southeast Asia.
Facebook, for which it is the first investment in an Indonesia-based firm, and PayPal Joins Google and Tencent among other technology giants that have backed up Gojek in the funding
Backing Gojek unlocks a similar opportunity: helping millions of small businesses while finding a business model for WhatsApp. The company will work with “indispensable” Gojek to “bring millions of small businesses and the customers they serve into the largest digital economy in Southeast Asia” Said Matt Idema, chief operating officer at WhatsApp.
“The majority of small businesses in Indonesia rely on cash to operate due to the country’s large unbanked population. Digital payments are safer than cash, both for businesses and customers. Digital payments help more people participate in the economy and give businesses access to credit which is crucial for business growth,” he added.
This investment will support Facebook and Gojek’s shared goal of empowering businesses and driving financial inclusion across the archipelago. WhatsApp helps small businesses communicate with customers and make sales. And together with Gojek, we believe we can bring millions of people into Indonesia’s growing digital economy.
“This new relationship is another positive step in our journey towards becoming the worldwide payments partner of choice, and helping to fuel global commerce by connecting the world’s leading marketplaces and payment networks,” PayPal said in a statement.
Additionally, the commercial partnership will enable the global payments giant to significantly grow its scope and scale in Southeast Asia.