Indonesian startup Go-Jek has become a major player in the Asian digital-payment industry, with the acquisition of three important firms in key sectors like online payments gateway, offline payments process, and saving & lending network.
Go-Jek enters competition with Grab for the ride-hailing market in Indonesia. The company has taken control of Kartaku, Midtrands, and Mapan by an undisclosed amount to raise its business to $5 billion, combining debit and credit cards, as well as digital wallet transactions for its customers, service providers, and merchants.
The acquisitions “will accelerate financial inclusion for millions of Indonesians and stimulate economic productivity throughout the country,” according to Go-Jek founder and CEO Nadiem Makarim, quoted by Reuters.
Uber and Grab have created competition for Go-Jek, a company that started in 2015 with a mobile app to book cheap motorcycle taxis in Jakarta. It now claims the place of the largest food-delivery in the country, as well as the first digital-wallet provider, that serves 900,000 drivers and more than 125,000 merchants with over 100 million transactions per month with 15 million weekly users.
“We are now taking Go-Jek to the next stage,” Mr. Makarim said in a public statement. “This marks a significant development in our position at the heart of Indonesia’s vibrant fintech industry.”
With a population of 260 million and a demographic growth that estimates 90 million more consumers by 2030, the Indonesian market is at the core of a Southeast Asian market that represents more than 600 million people. Indonesia also has a cap for growth in fintech, with 64% of the population with no access to formal banking services, according to a KPMG report by Bloomberg.
Makarim announced that the CEOs of each of the three companies will take senior management roles at Go-Jek. Kartuku’s Thomas Husted, for example, will become Go-Jek’s CFO, while Mapan’s Aldi Haryopratomo will lead Go-Pay, and Midtrans’s Ryu Suliawan will lead Go-Jek’s merchant platform.