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Gojek aims to allow users to open bank accounts with Jago and then manage their finances through its app.
Photographer: Adriana Adie / NurPhoto / Getty Images
Photographer: Adriana Adie / NurPhoto / Getty Images
Indonesian Internet Giant Gojek paid around $ 160 million to increase its stake in PT Bank Jago, making its largest investment in financial services to date.
GoPay, Gojek’s payments and financial services arm, bought nearly 1.96 billion shares at Rs 1.150 each, according to a stock exchange document. The internet firm used call options to acquire its stake, completing the deal at a steep discount to Friday’s close of 3,900 rupees and paying around 2.25 trillion rupees ($ 159.5 million) in total. Combined with an existing 4.14% stake, the additional investment brings Gojek’s stake in Bank Jago to 22.16%.
The move reflects the company’s ambition to accelerate its forays into fintech. Gojek – Indonesia’s most valuable startup, backed by Facebook Inc. and PayPal Holdings Inc .: aims to allow users to open bank accounts with Jago and then manage their finances through its app, according to an emailed statement. GoPay has been trying to extend digital financial services to merchants and drivers since 2017.
Indonesia is home to the fourth largest unbanked population in the world, where 52% of adults, or around 95 million people, do not have a bank account. Another 47 million adults have limited access to financial services, according to the Gojek statement.
The Jakarta-based startup now operates in five Southeast Asian countries. As of June, Gojek applications have been downloaded 190 million times by users across the region.
