Business

Google and Temasek Holdings investing in Indonesia's Go-Jek: Sources

SINGAPORE Alphabet's Google, Singapore's investment company Temasek Holdings and Chinese online platform Meituan-Dianping are investing in Indonesian ride-hailing start-up Go-Jek as part of a $1.2 billion fund-raising round, sources said.

The investments by Google - its first in a ride-hailing firm in Asia - and the other prominent investors underscore both the potential of the business in South-east Asia, a region of 640 million people, as well as the competitive threat in the ride-hailing environment.

As Go-Jek's rivals Grab and Uber Technologies have expanded their presence in the region, the need for backing from deep-pocketed investors has risen. Ride-hailing companies have been spending heavily to attract both riders and drivers, with discounts and promotions that have hurt their profit margins.

"As a strategic investor, Google can add a lot to Go-Jek's business," said one source.

Grab and Uber are backed by Japan's SoftBank Group, while Go-Jek has secured investments from Chinese technology giants Tencent Holdings and JD.com.

The funding round opened last year and is expected to close in a few weeks, the sources said. - REUTERS

BUSINESS & FINANCE