Facebook and PayPal have made investments in the ride hailing app Gojek, the Indonesian firm informed in a statement on Wednesday. Details of the deal were not disclosed. The US-based tech giants are joining Google and Tencent, as well as other investors in the current round, with total funds raised of over USD 3 billion, according to the company.
Facebook’s investment is the first it has made in an Indonesia-based business as it seeks to create new opportunities for its ubiquitous WhatsApp service.
“Gojek, WhatsApp and Facebook are indispensable services in Indonesia,” said Matt Idema, COO at WhatsApp. “Working together we can serve millions of small businesses and their customers in the largest digital economy in Southeast Asia.”
As part of its agreement, PayPal’s payment capabilities will be integrated into Gojek’s services. The two companies will also allow customers of GoPay, Gojek’s digital wallet, to gain access to PayPal’s network of more than 25 million merchants around the world.
The investment aims to support Gojek’s mission to boost Southeast Asia’s digital economy, with a focus on payments and financial services.
Gojek said that, since launching its app in 2015, it has digitized hundreds of thousands of merchants on its platform, and processed billions of transactions per year. GoPay has become the largest e-wallet in Indonesia, reaching micro, small, and medium enterprises, the majority of which continue to rely on cash to operate, due to the region’s large unbanked population.
“It’s a great validation that the world’s most innovative tech companies recognize the positive impact Gojek is making in Indonesia and the whole of Southeast Asia,” said Andre Soelistyo, co-CEO of Gojek. “By working together, we have the opportunity to achieve something truly unique as we aim to help more businesses to digitize and ensure that many millions more consumers are enjoying the benefits that the digital economy can bring.”