Grab, Gojek in merger talks to become Southeast Asian E-commerce giant

The two Southeast Asian ride-hailing providers turned e-commerce companies Grab and Gojek are planning to merge in what would be the biggest merger of Internet companies in Southeast Asia so far, according to a Bloomberg News report.

The region’s two most valuable startups are currently negotiating details of the possible deal, the agency referred to insiders. The final details are being worked out among the most senior leaders of each company with the participation of SoftBank Group Corp’s Masayoshi Son, a major Grab investor.

Under one structure with substantial support, Grab co-founder Anthony Tan would become the chief executive officer of the combined entity, while Gojek executives would run the new combined business in Indonesia under the Gojek brand, the people said. The two brands may be run separately for an extended period of time, the report said.

After a combination of the brands, the merged company would seek an initial public offering.

The end of cash burning lies ahead

Grab and Gojek have been locked in a fierce, expensive battle for dominance in that business along with food delivery and mobile payments over the last several years. Investors have been pushing for them to combine forces across Southeast Asia in order to reduce cash burn and create one of the most powerful Internet companies in the region.

Grab, which is present in eight countries, was last valued at more than $14 billion, while Gojek, valued at $10 billion, has presence in Indonesia, Singapore, the Philippines, Thailand and Vietnam.

Meanwhile, a venture led by Grab Holdings is among four bidders to have won licenses to run digital banks in Singapore, paving the way for the technology giants to expand their financial services in the city state.



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The two Southeast Asian ride-hailing providers turned e-commerce companies Grab and Gojek are planning to merge in what would be the biggest merger of Internet companies in Southeast Asia so far, according to a Bloomberg News report. The region’s two most valuable startups are currently negotiating details of the possible deal, the agency referred to insiders. The final details are being worked out among the most senior leaders of each company with the participation of SoftBank Group Corp’s Masayoshi Son, a major Grab investor. Under one structure with substantial support, Grab co-founder Anthony Tan would become the chief executive officer...

The two Southeast Asian ride-hailing providers turned e-commerce companies Grab and Gojek are planning to merge in what would be the biggest merger of Internet companies in Southeast Asia so far, according to a Bloomberg News report.

The region’s two most valuable startups are currently negotiating details of the possible deal, the agency referred to insiders. The final details are being worked out among the most senior leaders of each company with the participation of SoftBank Group Corp’s Masayoshi Son, a major Grab investor.

Under one structure with substantial support, Grab co-founder Anthony Tan would become the chief executive officer of the combined entity, while Gojek executives would run the new combined business in Indonesia under the Gojek brand, the people said. The two brands may be run separately for an extended period of time, the report said.

After a combination of the brands, the merged company would seek an initial public offering.

The end of cash burning lies ahead

Grab and Gojek have been locked in a fierce, expensive battle for dominance in that business along with food delivery and mobile payments over the last several years. Investors have been pushing for them to combine forces across Southeast Asia in order to reduce cash burn and create one of the most powerful Internet companies in the region.

Grab, which is present in eight countries, was last valued at more than $14 billion, while Gojek, valued at $10 billion, has presence in Indonesia, Singapore, the Philippines, Thailand and Vietnam.

Meanwhile, a venture led by Grab Holdings is among four bidders to have won licenses to run digital banks in Singapore, paving the way for the technology giants to expand their financial services in the city state.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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