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Go-Jek’s Get app officially launches in Thailand as Southeast Asia expansion continues

Posted by on Feb 28, 2019 in Asia, bangkok, carsharing, ceo, Collaborative Consumption, countries, Food, go-jek, grab, Indonesia, Philippines, Singapore, Softbank, Southeast Asia, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek is extending its reach in Southeast Asia after its Thailand-based unit made its official launch, which included the addition of a new food delivery service.

Get, which is the name for Go-Jek business in Thailand, started out last year offering motorbike taxi on-demand services to a limited part of Thai capital city Bangkok, now the company said it has expanded the bikes across the city and added food and delivery options. Get’s management team is composed of former Uber staffers while CEO Pinya Nittayakasetwat was recruited from chat app Line’s food delivery business.

Over the last two months, Get claims to have completed two million trips in the past two months. There’s no word on when Get will add four-wheeled transport options, however. On the food side, Get is claiming to have 20,000 merchants on its platform but there are some issues. Rumming through the app, I found a number of listed restaurants that didn’t include menus. In those instances, customers have to input their dish and price which makes it pretty hard to use.

Go-Jek’s Get app in Thailand doesn’t include menus for a number of restaurants, making it nearly impossible to order

Grab is the dominant player in Thailand, where it offers taxis, private cars, motorbikes, delivery and food across eight markets in Southeast Asia. Go-Jek rose to success in its native Indonesia, where it began offering motorbikes on demand but has expanded to cover taxi, cars, food, general services on-demand and fintech. Its investors include Google, Tencent, Meituan and Sequoia India.

That’s the same playbook Grab is using, but Go-Jek is taking its time with its market expansions. Thailand represents its third new market beyond Indonesia, following launches in Vietnam and Singapore. The Philippines is another market where Go-Jek has voiced a desire to be present — it has even made an acquisition there — but regulatory issues are holding up a launch.

Regional expansion doesn’t come cheap and Go-Jek is in the midst of raising $2 billion to finance these moves. It recently closed $1 billion from existing investors, and Deal Street Asia reports that it could raise as much as $3 billion for the entire Series F round. That’s likely in response to Grab’s own fundraising plans. The Singapore-based company closed $2 billion last year, but it is looking to increase that total to $5 billion with a major injection from SoftBank’s Vision Fund a key piece of that puzzle.


Source: The Tech Crunch

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Facebook removes hundreds of accounts linked to fake news group in Indonesia

Posted by on Feb 1, 2019 in Asia, computing, digital media, Facebook, fake news, Indonesia, instagram, Myanmar, Philippines, photo sharing, Singapore, Social Media, social network, Software, Southeast Asia, sri lanka, TC, Thailand, United Nations, United States, world wide web | 0 comments

Facebook said today it has removed hundreds of Facebook and Instagram counts with links to an organization that peddled fake news.

The world’s fourth largest country with a population of over 260 million, Indonesia is in election year alongside Southeast Asia neighbors Thailand and the Philippines. Facebook said this week it has set up an ‘election integrity’ team in Singapore, its APAC HQ, as it tries to prevent its social network being misused in the lead-up to voting as happened in the U.S.

This Indonesia bust is the first move announced since that task force was put in place, and it sees 207 Facebook Pages, 800 Facebook accounts, 546 Facebook Groups, and 208 Instagram accounts removed for “engaging in coordinated inauthentic behavior.”

“About 170,000 people followed at least one of these Facebook Pages, and more than 65,000 followed at least one of these Instagram accounts,” Facebook said of the reach of the removed accounts.

The groups and accounts are linked to Saracen Group, a digital media group that saw three of its members arrested by police in 2016 for spreading “incendiary material,’ as Reuters reports.

Facebook isn’t saying too much about the removals other than: “we don’t want our services to be used to manipulate people.”

In January, the social network banned a fake news group in the Philippines in similar circumstances.

Despite the recent action, the U.S. company has struggled to manage the flow of false information that flows across its services in Asia. The most extreme examples come from Myanmar, where the UN has concluded that Facebook played a key role in escalating religious hatred and fueling violence. Facebook has also been criticized for allowing manipulation in Sri Lanka and the Philippines among other places.


Source: The Tech Crunch

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Go-Jek makes first close of Series F round at $9.5B valuation

Posted by on Feb 1, 2019 in Asia, carsharing, Collaborative Consumption, Companies, financial services, food delivery, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, JD.com, online food ordering, Philippines, series f, Singapore, Southeast Asia, Tencent, Thailand, transport, Uber, vietnam | 0 comments

Go-Jek, the Indonesia-based ride-hailing company that is challenging Grab in Southeast Asia, has announced the first close of its Series F round, as TechCrunch reported last week. The company isn’t revealing numbers. Sources told us last week that it has closed around $920 million, but we understand that today that the round is at over $1 billion. Go-Jek is planning to raise $2 billion for the round, as reported last year.

Go-Jek said that the first close is led by existing backers Google, JD.com, and Tencent, with participation from Mitsubishi Corporation and Provident Capital. It didn’t provide a valuation but sources told us that week that it is around $9.5 billion.

Starting out with motorbike taxis in 2015, Go-Jek has since expanded to taxis, private car and more. The company said it plans to spend the money deepening its business in Indonesia, its home market, and growing its presence in new market expansions Vietnam, Singapore and Thailand. It is also working to enter the Philippines, where it had a request for an operating license rejected although it did complete a local acquisition after buying fintech startup Coins.ph.

The Go-Jek business in Indonesia includes transportation, food delivery, services on demand, payments and financial services. That’s very much the blueprint for its expansion markets, all of which are in different stages. Go-Viet, its Vietnamese service, offers food delivery and motorbike taxis, Get in Thailand operates motorbike taxis and in Singapore Go-Jek provides four-wheeled car options.

Combined those efforts cover 204 cities, two million drivers and 400,000 merchants, the company said, but the majority of that is in Indonesia.

Grab, meanwhile, became the top dog after buying Uber’s local business, and it operates in eight countries. It recently crossed three billion rides to date and claims 130 million downloads. Grab said revenue for 2018 was $1 billion, it expects that to double this year. It has raised $6.8 billion from investors, according to Crunchbase, and its current Series H round could reach $5 billion.

Go-Jek claims it has 130 million downloads — despite just being in three markets — while it said it reached an annualized transaction volume of two billion in 2018 and $6.7 billion in annualized GMV. Those figures require some explaining as Go-Jek is being a little creative with its efforts to compete with Grab on paper.

Transactions don’t mean revenue — a transaction could be a $1 motorbike ride or a payment via QR code — and GMV is not revenue either, while both are ‘annualized’ which means they are scaled up after measuring a short period. In other words, don’t take these figures too literally, they aren’t comparable to Grab.


Source: The Tech Crunch

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Grab raises $200M from Thailand-based retail conglomerate Central Group

Posted by on Jan 31, 2019 in Asia, booking holdings, carsharing, central group, E-Commerce, funding, Fundings & Exits, go-jek, grab, Indonesia, JD.com, Microsoft, on-demand services, Philippines, Rocket Internet, Singapore, Softbank, Software, Southeast Asia, Thailand, Toyota, transport, vietnam, Vision Fund, yamaha motors, Zalora | 0 comments

Grab’s fundraising push continues unabated after the Southeast Asian ride-hailing firm announced that it has raised $200 million from Central Group, a retail conglomerate based in Thailand.

Central’s business covers restaurants, hotels and more than 30 malls in Thailand, while it has operations in markets that include Vietnam and Indonesia. Its public-listed holding companies alone are worth more than $15 billion.

Singapore-based Grab confirmed that this deal is not part of its ongoing Series H fundraising, but is instead an investment into its Thailand-based business. Rumors of the deal were first reported by Reuters last year.

Following this investment, Central said it will work with Grab in a number of areas in Thailand, including bringing its restaurants into the Grab Food service, adding Grab transportation to its physical outlets and bringing Grab’s logistics service into its businesses.

The investment represents the first time an investor has bought into a local Grab country unit, and the goal is to strengthen Grab’s position in Thailand — a market with 70 million consumers and Southeast Asia’s second-largest economy. Grab is under threat from Go-Jek, which expanded to Thailand at the end of 2018. While Go-Jek’s ‘Get’ service is currently limited to motorbikes on-demand in Thailand, its ambition is to recreate its Indonesia-based business that covers four-wheeled cars, mobile payments, on-demand services and more.

Central is a huge presence in the country, and in recent years it has raised its efforts to translate that offline retail presence into the digital space. Past deals have included the acquisition of Rocket Internet’s Zalora fashion business in 2016, and — more recently — a $500 million joint venture with Chinese e-commerce firm JD.com to create online retail and fintech businesses in Thailand.

Grab, meanwhile, is pushing on with its $3 billion Series H funding round. That deal is anchored by a $1 billion investment from Toyota but it also includes contributions from the likes of Microsoft, Booking Holdings and Yamaha Motors. More capital is waiting in the wings, however, with existing investor SoftBank in the process of transferring its investment to its Vision Fund with a view to investing a further $1.5 billion. The total fundraising effort is targeted at a lofty goal of $5 billion, sources told TechCrunch.

To date, Grab has raised $6.8 billion from investors, according to data from Crunchbase. That makes it Southeast Asia’s most capitalized tech startup and it was most recently valued at $11 billion. The company recently announced it has completed three billion rides; it claims 130 million downloads across its eight markets.

Go-Jek, meanwhile, closed the first portion of a $2 billion funding round last week, sources told TechCrunch. The new financing is aimed at growing out its presence in new market expansions which, beyond Thailand, include Singapore, Vietnam and the Philippines.


Source: The Tech Crunch

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Go-Jek makes first close of $2 billion round at $9.5 billion valuation

Posted by on Jan 25, 2019 in alibaba group, alipay, Asia, China, Co-founder, Collaborative Consumption, Companies, funding, Fundings & Exits, go-jek, Google, grab, Indonesia, JD.com, Philippines, Singapore, Softbank, Southeast Asia, TC, Tencent, Thailand, Uber, vietnam | 0 comments

Southeast Asia-based ride-sharing firm Go-Jek is making progress with its plan to raise up to $2 billion in fresh capital to fund its battle with close rival Grab .

Indonesia-headquartered Go-Jek has closed an initial chunk of that round after a collection of existing investors, including Google, Tencent and JD.com, agreed to invest around $920 million towards it, three sources with knowledge of the investment told TechCrunch.

The deal, which we understand could be announced as soon as next week, will value Go-Jek’s business at around $9.5 billion, one source told TechCrunch. With existing investors on board, the company is now actively soliciting checks from other backers to take it to its target. The capital is likely to go towards deepening its presence in new markets and furthering its fintech push.

A Go-Jek representative declined to respond when contacted by TechCrunch for comment on its fundraising efforts.

This incoming round excluded, Go-Jek has raised more than $2 billion from investors to date, including a $1.4 billion round that closed last year and valued its business at $5 billion.

Founded in 2015, Go-Jek began in motorbike taxis before expanding to four-wheels, service on demand and fintech. It decided to go after a $2 billion raise last year — having seen Grab gobble up Uber’s local business in Southeast Asia — but it has taken some time to make progress. That’s partially down to an effort to ‘clean the cap table’ by buying out some early investors and longer-serving or former staff with equity, two sources told TechCrunch.

Likewise, there has also been discussion around including the acquisition of JD.com’s local JD.id business, valued at over $1 billion, in the deal. As far as we know, a resolution hasn’t been found despite lengthy talks.

An acquisition of JD.id would not only see JD.com’s influence deepen with Go-Jek, but it would give the ride-hailing startup a strong position in Indonesia’s e-commerce space, which includes three other unicorns: Alibaba-owned Lazada, Tokopedia — which is backed by Alibaba and SoftBank’s Vision Fund — and Bukalapak, which also recently raised money for growth.

There is some doubt, however. Speaking to Reuters this week, co-founder Kevin Aluwi denied Go-Jek has plans to enter e-commerce.

Fundraising for Southeast Asia’s ride-sharing companies went up a few notches last year after Uber decided to exit the region through a deal with Grab, which saw the U.S. firm pick up a potentially-lucrative 27.5 percent stake in Singapore-based Grab.

Grab raised a $3 billion Series H round, anchored by a $1 billion injection from Toyota, but the company plans to increase that fundraising effort to as much as $5 billion, as we reported at the tail end of last year.

Why all the huge checks? At stake is a dominant position within a fast-growing online market.

Ride-hailing in Southeast Asia is poised to grow from an $8 billion annual business in 2018 to $31 billion by 2025, according to a report from Google and Temasek. Indonesia alone is tipped to account for nearly half of that figure.

The report from Google and Temasek forecasts major growth for ride-hailing in Southeast Asia

With a cumulative population of more than 620 million people and increasing internet access, Southeast Asia has emerged from the shadows of China and India to become an attractive market for startups and tech companies. Chinese giants like Tencent and Alibaba have stepped up investment areas in recent years, with e-commerce, fintech and other ‘ground zero’ infrastructure services among their targets as the region begins to turn digital in the same way China has.

That’s where Grab and Go-Jek get interesting because, beyond simply catering to transportation, both companies have expanded to offer services on-demand, like e-groceries, as well as payments and financial services such as loans, remittance and insurance. The goal is to become the region’s one-stop ‘super app’ like WeChat, Alipay and Meituan in China.

So far, Go-Jek has fanned out beyond ride-hailing to offer fintech and other services in Indonesia, but it is still getting to grips with the regional play. It expanded to Vietnam, Thailand and Singapore last year while the Philippines is a work in progress following a setback after it was denied an operating permit earlier this month.

Already, though, it is making plans for the Philippines after it acquired Coins.ph, a fintech startup that is likely to be the base for a local push into payments and financial services. The deal was officially undisclosed, but sources told TechCrunch that Go-Jek has paid around $72 million — that potentially makes it the company’s largest acquisition to date. That shows how serious Go-Jek is both about its expansion efforts and its fintech business.

Go-Jek CEO Nadiem Makarim worked at McKinsey for three years before starting the companyn[Photographer: Wei Leng Tay/Bloomberg]

In the here and now, Go-Jek claims more than 125 million downloads in Indonesia, over a million drivers and some 300,000 food merchants. It claims to process 100 million transactions per month, while Aluwi told Reuters that total transactions on its platforms crossed $12.5 billion last year. That doesn’t mean net income, however, since the company takes only a slice of customer’s ride-sharing fares and payment volumes.

Grab, meanwhile, operates in eight markets in Southeast Asia. It claims over 130 million downloads and more than 2.5 billion completed rides to date. Grab is assumed to not yet be profitable but it has said that it made $1 billion in revenue in 2018. It projects that the figure will double this year.

The company has raised around $6.8 billion from investors, according to data from Crunchbase, and Grab was last valued at $11 billion.


Source: The Tech Crunch

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Auto marketplace CarDekho grabs $110M to double down on insurance and financial services

Posted by on Jan 3, 2019 in Alphabet, Asia, Automotive, CapitalG, car, car dealership, dentsu, Finance, funding, Fundings & Exits, India, Indonesia, insurance, malaysia, online marketplace, Philippines, Southeast Asia, Times Internet, YouTube | 0 comments

CarDekho, an online marketplace for car sales in India, has pulled in a new $110 million Series C funding round from a clutch of existing investors to push deeper into financial services and insurance.

Sequoia India, Hillhouse and Alphabet’s CapitalG led the round which also saw participation from Axis Bank, one of CarDekho’s financing partners.

[Update] The company confirmed that the deals gives it a valuation of $400-$500 million, that’s in line with a report from Economic Times one month ago. The figure is up slightly on a reported $360 million valuation from CarDekho’s previous fundraising in 2016.

The deal takes the company to $185 million to date from investors, which also include Times Internet, Ratan Tata — Tata Group’s Chairman Emeritus — HDFC Bank and Dentsu.

Founded in 2005 as GirnarSoft, CarDekho operates a range of online portals that sell new and second-hand cars and motorbikes in India. The company has also branched out into Southeast Asia where it operates portals in Malaysia, Philippines and Indonesia and, on the content side, it operates a YouTube channel and an auto blog and reviews site.

CarDekho claims 39 million monthly unique visitors to its websites, and six million downloads of its apps. On the finance side, it said revenue went from 114 crores ($16.3 million) in the 2016-2017 financial year to 160 crore ($22.8 million) in 2017-18. (The Indian financial calendar runs from April 1 to March 31.)

CarDekho claims to work “actively” with 5,000 dealerships in India while it has direct retail partnerships with eight car and motorbike makers. It claims to influence 42 percent of sales for those dealerships and 15-30 percent of annual sales for those auto- and bike makers, although the company didn’t provide specific details on how it calculates those figures.

Beyond helping facilitate sales, it also offers car financing in partnership with over 10 financial entities who offer terms to its customers. It has provided insurance options too since 2017 and, with this new funding in the bag, it said that it intends to double down and build out more “transaction services” that go hand-in-hand with auto sales.

“Our contribution to a person buying a new car has grown manifold and this will continue to be a bulwark for us. Our used cars engine has scaled up tremendously and has also enabled us to incubate allied businesses like insurance and finance business as they are one of the largest opportunities ahead of us. The opportunity lies in extending formal credit and insurance coverage to the new-to-formal economy population and will continue to be a focus area for us” said CEO and co-founder Amit Jain in a statement.

CarDheko is rivaled by the likes of CarTrade, which is backed Temasek and Warburg Pincus and previous gobbled up rival CarWale, Truebil and Cars24, a service that buys cars from consumers and resells them to dealers. Notably, Sequoia India is also an investor in Cars24.


Source: The Tech Crunch

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TNB Aura closes $22.7M fund to bring PE-style investing to Southeast Asia’s startups

Posted by on Dec 13, 2018 in Artificial Intelligence, Asia, Australia, Business, economy, entrepreneurship, Finance, funding, Fundings & Exits, golden gate ventures, Google, Indonesia, jungle ventures, manufacturing, money, Monk's Hill Ventures, openspace ventures, Philippines, Private Equity, Singapore, Southeast Asia, Startup company, TC, temasek, Thailand, TradeGecko, United States, Venture Capital, vietnam | 0 comments

TNB Aura, a recent arrival to Southeast Asia’s VC scene, announced today that it has closed a maiden fund at SG$31.1million, or around US$22.65 million, to bring a more private equity-like approach to investing in startups in the region.

The fund was launched in 2016 and it is a joint effort between Australia-based venture fund Aura and Singapore’s TNB Ventures, which has a history of corporate innovation work. It reached a final close today, having hit an early close in January. It is a part of the Enterprise Singapore ‘Advanced Manufacturing and Engineering’ scheme which, as you’d expect, means there is a focus on hardware, IO, AI and other future-looking tech like ‘industry 4.0.’

The fund is targeting Series A and B deals and it has the firepower to do 15-20 deals over likely the next two to three years, co-founder and managing partner Vicknesh R Pillay told TechCrunch in an interview. There’s around $500,000-$4 million per company, with the ideal scenario being an initial $1 million check with more saved for follow-on rounds. Already it has backed four companies including TradeGecko, which raised $10 million in a round that saw TNB Aura invest alongside Aura, and AI marketing platform Ematic.

The fund has a team of 10, including six partners and an operating staff of four. It pitches itself a little differently to most other VCs in the region given that manufacturing and engineering bent. That, Pillay said, means it is focused on “hardware plus software” startups.

“We are very strong fundamentals guys,” Pillay added. We ask what is the valuation and decide what we can get from a deal. It’s almost like PE-style investing in the VC world.”

A selection of the TNB Aura team [left to right]: Samuel Chong (investment manager), Calvin Ng, Vicknesh R Pillay, Charles Wong (partners), Liu Zhihao (investment manager)

Another differentiator, Pillay believes, is the firm’s history in the corporate innovation space. That leads it to be pretty well suited to working in the B2B and enterprise spaces thanks to its existing networks, he said.

“We particularly like B2B saas companies and we believe we can assist them through of our innovation platforms,” Pillay explained.

Outside of Singapore — which is a heavy focus thanks to the relationship with Enterprise Singapore — TNB Aura is focused on Indonesia, the Philippines, Thailand and Vietnam, four of the largest markets that form a large chunk of Southeast Asia’s cumulative 650 million population. With an internet population of over 330 million — higher than the entire U.S. population — the region is set to grow strongly as internet access increases. A recent report from Google and Temasek tipped the region’s digital economy will triple to reach $240 billion by 20205.

The report also found that VC funding in Southeast Asia is developing at a fast clip. Excluding unicorns, which distort the data somewhat, startups raised $2.6 billion in the first half of this year, beating the $2.4 billion tally for the whole of 2017.

There are plenty of other Series A-B funds in the region, including Jungle Ventures, Golden Gate Ventures, Openspace Ventures, Monks Hill Ventures, Qualgro and more.


Source: The Tech Crunch

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Netflix rival Iflix launches $5M search for up-and-coming filmmakers in Asia

Posted by on Dec 6, 2018 in africa, Asia, Bangladesh, Benjamin Grubbs, computing, digital media, iflix, Indonesia, malaysia, Media, Middle East, Netflix, Next 10 Ventures, Philippines, tiktok, Viddsee, world wide web, YouTube | 0 comments

Netflix is increasing its efforts in Asia after it commissioned more local content and began testing more aggressive price points, but one local rival is hitting back with a program to spotlight promising creators in the region.

Malaysia-headquartered Iflix, which operates in 26 countries across Africa, the Middle East and Asia, today announced a $5 million program to find 30 filmmakers across four of its largest markets: Indonesia, Malaysia, Bangladesh, and the Philippines. The company, which has raised nearly $300 million from investors that include Sky, offers a freemium service with a paid tier that costs around $3 per month. It claims an audience of ‘millions’ of users.

The twelve-month initiative will be run alongside Next 10 Ventures, a digital content program from ex-YouTube exec Benjamin Grubbs, with the aim of helping would-be or part-time filmmakers to fully pursue their passion.

“There’s ad revenue in some markets but it may not be sufficient enough to enable you to have a full-time career,” Grubbs, who was previously YouTube’s global director of top creator partnerships, told TechCrunch in an interview. “A commitment up front to support creative storytellers is a positive element fo the ecosystem… there are things people want to do without waiting for brand sponsorship.”

In addition to financing, the program will provide mentoring, equipment and other assistance to produce content exclusively for Iflix.

Iflix launched its own original content program 18 months ago, and Craig Galvin — the company’s global head of content — said that the initiative isn’t just limited to creators’ local markets, which might be a logical assumption given Netflix’s more global approach.

Instead, Galvin — who launched Iflix’s first short-form video program earlier this year — argued that there is the potential to reach Iflix’s global viewers.

“We do see our pathway to be more local-centric but I do believe some of this content will travel well beyond their territories,” he told TechCrunch.

“For many, the remuneration isn’t quite there yet,” Galvin added. “So for us, it’s allowing them some scope to help reach their full potential.”

The short videos supported by the program won’t be quite as brief as the seconds-long shorts you’ll find on TikTok, the fast-growing video platform, since Galvin and Grubbs are seeking more episodic content. However, they remain open to “exploring experimentation” — potentially series of one-minute shorts — if such proposals are judged to resonate with audiences.

“There’s no definitive number but we’re expecting around 1,500 pieces of content as part of this program,” Galvin said, adding that he hopes to expand the program to cover more, or all, of Iflix’s markets in the future.

Filmmakers wanting to apply to the program can do so on the website here.

One obvious comparison to the Iflix initiative is Viddsee, a Singapore-based streaming service that features short video content from independent filmmakers in Asia and beyond.

Founded in 2012, Viddsee has raised a little over $2 million to date and it recently introduced a crowdfunding feature that allows filmmakers to raise money directly from its global audience. The company has also helped filmmakers to find brand sponsors in order to get the checks required to fund production.


Source: The Tech Crunch

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The Wrong Way to Fight a Drug War

Posted by on Aug 8, 2018 in Addiction (Psychology), Drug Abuse and Traffic, Duterte, Rodrigo, Philippines, Therapy and Rehabilitation | 0 comments

The Philippines has undertaken a brutal battle against “shabu,” or crystal methamphetamine. But the government needs to go after another target entirely.
Source: New York Times

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Grab picks up $2 billion more to fuel growth in post-Uber Southeast Asia

Posted by on Aug 2, 2018 in alibaba, Asia, carsharing, China, Collaborative Consumption, Commuting, didi, Didi Chuxing, financial services, Fundings & Exits, Google, grab, Indonesia, KKR, lightspeed, lightspeed venture partners, offline to online, Philippines, Softbank, SoftBank Group, Southeast Asia, Tencent, Thailand, Toyota, transport, Uber, United States, vietnam, vulcan capital, warburg pincus | 0 comments

Grab, the ride-hailing service that struck a deal to take Uber out of Southeast Asia, has announced that it has pulled in $2 billion in new capital as it seeks to go beyond ride-hailing to offer more on-demand services.

The $2 billion figure includes a $1 billion investment from Toyota which was announced in June, and it sees a whole host of institutional investors join the Grab party. Some of those names include OppenheimerFunds, Ping An Capital, Mirae Asset — Naver Asia Growth Fund, Cinda Sino-Rock Investment Management Company, All-Stars Investment, Vulcan Capital, Lightspeed Venture Partners and Macquarie Capital.

Grab confirmed that the round is still open, so we can expect that it’ll add more investors and figures to this deal.

The deal values Grab at $11 billion post-money, which is the same as the $10 billion valuation it earned following the Toyota deal. The caliber of investors certainly suggests an IPO is on the cards soon — not that it ever hasn’t been — although the company didn’t comment directly on that when we asked.

This new financing takes Grab to $6 billion from investors. Some of its other notable backers include SoftBank and China’s Didi Chuxing, which both led a $2 billion round last year which gave Grab the gas to negotiate a deal with Uber that saw the U.S. ride-hailing giant exit Southeast Asia in exchange for a 27.5 percent stake in Grab. From that perspective, the deal was a win-win for both sides.

In this post-Uber world, Grab is transitioning to offer more services beyond just rides. It has long done so, with its own payment service and food deliveries, but it is rolling out a revamped “super app” design that no longer opens to a ride request page and that reflects the changing strategy of the Singapore-based company.

10 July 2018; Tan Hooi Ling, co-Founder, Grab, at a press conference during day one of RISE 2018 at the Hong Kong Convention and Exhibition Centre in Hong Kong. Photo by Stephen McCarthy / RISE via Sportsfile

Grab said in a statement today that this new money will go towards that “O2O” [offline-to-online] strategy that turns Grab’s app into a platform that allows traditional, offline services to tap the internet to reach new customers. The trend started out in China, with Alibaba and Tencent among those pushing O2O services, and Grab is determined to be that solution for Southeast Asia’s 650 million consumers.

Indonesia, Southeast Asia’s largest economy with a population of over 260 million, is a key focus for Grab, the company said. The company has been pushed out new financial services in the country, fueled by an acquisition last year, and it claims it is winning “significant market share” with GMV quadrupled in the first half of this year.

With Uber out of the picture, the company’s main rival for the ‘Southeast Asia Super App Crown’ is Go-Jek, the Indonesian on-demand service valued at $5 billion.

Go-Jek has long focused on its home market but this year it unveiled an ambitious plan to expand to three new markets. That kicked off yesterday with a launch in Vietnam, and the company has plans to arrive in Thailand and the Philippines before the end of the year.

Go-Jek has raised over $2 billion and it counts KKR, Warburg Pincus, Google and Chinese duo Tencent and Meituan among its backers.


Source: The Tech Crunch

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