KKR, Warburg Pincus, Farallon and Capital Group Private Markets Invest in GO-JEK

KKR, Warburg Pincus, Farallon and Capital Group Private Markets Invest in GO-JEK
05.08.2016 11:15 am

KKR, Warburg Pincus, Farallon and Capital Group Private Markets Invest in GO-JEK

Investment

A consortium of global investment firms announced today the signing of definitive agreements to make a substantial investment in GO-JEK, Indonesia’s leading on-demand mobile platform. This equity capital raise of over $550 million, which represents the company’s latest round of financing, is comprised of leading investors including KKR, Warburg Pincus, Farallon Capital and Capital Group Private Markets, as well as existing shareholders and other international investors. Previous investors include Sequoia India, Northstar Group, DST Global, NSI Ventures, Rakuten Ventures and Formation Group.

The growth capital injection will help enhance the scale and quality of GO-JEK’s on-demand platform and application services, which have leading positions across multiple verticals. Among GO-JEK’s services are motorcycle ride-hailing, online food delivery, instant courier deliveries and lifestyle services, as well as services in the fast growing e-wallet and car ride-hailing segments. Each of these services addresses the daily needs of Indonesian urbanites. GO-JEK will additionally leverage the new investors’ investment experience in the telecommunications, media and technology (“TMT”) space as well as their global network of partners to deepen its offerings in Indonesia and potentially across the region.

Terence Lee, Director at KKR Asia, said, “GO-JEK is unique in its ability to be the number-one service provider across almost all key categories and the company has a real opportunity to strengthen its position as a leading mobile platform in Indonesia. The foundation of GO-JEK’s success is its focus on providing innovative, convenient and cost-effective online solutions that improve its customers’ everyday lives. This ingenuity is the result of the innovation, vision and execution of Nadiem and his high caliber team and we look forward to continuing to attract world-class talent to one of the world’s most dynamic tech companies.”

Jeffrey Perlman, Head of Southeast Asia for Warburg Pincus, said, “We are excited to partner with Nadiem, Kevin, Andre and the entire GO-JEK management team. With a rapidly expanding middle class, increasing urban density and a young demographic that is internet savvy, GO-JEK is well positioned to become the ‘go to’ platform for high frequency daily services including transport, food, logistics and payment. We look forward to leveraging our global network of partners and experience in the technology and consumer sectors to help the company build the leading internet platform in Indonesia and across the region.”

GO-JEK’s mobile applications have been downloaded more than 20 million times as of June 30, 2016. In June 2016 only, there were over 20 million bookings on the GO-JEK platform, translating to roughly eight bookings per second being processed in that month.

Nadiem Makarim, Co-Founder and CEO of GO-JEK, said, “We are extremely humbled and excited to work with such world-class partners. KKR, Warburg Pincus, Farallon, Capital Group and other participants in this fundraise not only bring global experience in the TMT sector, but they are also experienced local partners. With their support and investment, GO-JEK is poised to build on its initial success to become the largest on-demand application of choice for all Indonesians and improve the daily lives of more than 200,000 motorcycle and car driver partners, more than 35,000 GO-FOOD merchants whose businesses we helped grow and more than 3,000 service providers on our other on-demand services.”

Andre Soelistyo, GO-JEK Group CFO and Head of Strategy, added, “We are proud and honored that we have been given the opportunity to push Indonesian society forward with technology and empower the hundreds of thousands of micro entrepreneurs on our platform across the entire nation with the potential to further expand our services across the region.”

Indonesia, with the world’s fourth-largest population of more than 250 million people, is rapidly becoming a digital nation. Indonesia has 88.1 million active internet users and 36 percent of the population carry smartphones. Launched in January 2015, GO-JEK is the first Indonesian mobile platform that touches across socio-economic classes and verticals at a high transaction frequency that includes transportation, food delivery, same-day delivery, grocery shopping, household cleaning, beauty and health and ticket sales.

It has a leading position in each of the verticals today and is constantly expanding and deepening its offerings. GO-JEK’s motorcycle transport service, GO-RIDE, is the biggest service of its kind in Indonesia with more than 200,000 drivers. Outside of motorcycle transport, GO-FOOD is the second largest on-demand food delivery service in the world outside of China with over 15 million meals delivered since inception.

GO-PAY, launched in April 2016, is now a fast-growing e-wallet solution in Indonesia. With credit card penetration in Indonesia at under 2% and online payment nascent, GO-PAY is essential in enabling a seamless transaction experience on GO-JEK services. GO-JEK and GO-PAY are best-positioned to capture wallet share from a growing online user base.

KKR makes its investment from its Asian Fund II. Warburg Pincus makes its investment from an affiliate of Warburg Pincus Private Equity XII, L.P. The transaction is subject to customary approvals. Additional terms of the transaction are not disclosed.

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