There are a number of ways for fundraising, and Indonesia's Gojek has just benefited from one in a big way by having more titans behind its back.
Social media giant Facebook and U.S. digital payment company PayPal have invested an undisclosed amount to Gojek. The two giant companies are joining forces with the ride-sharing and food delivery company, to help it expand its market to more small- and medium-sized enterprises.
In the announcement on its blog post, Gojek said that the funding round also included Gojek's previous investors Google and Chinese internet giant Tencent.
The investments are part of the Indonesian firm’s ongoing Series F financing round, which brings it a total raise-to-date to over $3 billion.
According to Gojek Co-Chief Executive Andre Soelistyo, who replaces Gojek founder Nadiem Makarim after he resigns his job at the firm to join Indonesian cabinet in October 2019:
Indonesia is one of the biggest Asian markets for Facebook, and it was previously reported that the social giant was already in talks with some fintech companies in Indonesia to launch a mobile payment service in the country.
And what made Facebook particularly interested in Gojek, is because of its alluring GoPay service.
Gojek has 170 million users throughout Southeast Asia who made billions of transactions using the digital payment to pay for the company's ride-sharing and food delivery services. With GoPay, Gojek directly competes with Singapore-based Grab, which in Indonesia collaborates with the OVO digital wallet.
Gojek in having a huge number of users, certainly attracted Facebook. And this investment is Facebook's first in an Indonesian company.
Matt Idema, the Chief Operating Officer of Facebook subsidiary WhatsApp, said the collaboration between Gojek, Facebook and WhatsApp would "help millions of MSMEs [micro, small and medium enterprises] and their customers to join the largest digital economy community in Southeast Asia."
"This investment will support Facebook and Gojek's shared goal of empowering businesses and driving financial inclusion across the archipelago," said Idema.
"WhatsApp helps small businesses communicate with customers and make sales, and together with Gojek, we believe we can bring millions of people into Indonesia's growing digital economy."
"The majority of small businesses in Indonesia rely on cash to operate due to the country’s large unbanked population. Digital payments are safer than cash, both for businesses and customers. And digital payments help more people participate in the economy and give businesses access to credit which is crucial for business growth," he said.
"This investment underscores Facebook’s commitment to serving small businesses and helping bring them and their customers into the digital economy," said Facebook on its own announcement.
The investment into Gojek follows Facebook's $5.7 billion investment to India's Jio Platforms, the digital subsidiary of Indian conglomerate Reliance Industries, owned by billionaire Mukesh Ambani.
As for PayPal, the investment would allow its payment capabilities to be integrated into Gojek’s services. This in turn allows PayPal to “significantly grow” its scope and scale in Southeast Asia.
“This new relationship is another positive step in our journey towards becoming the worldwide payments partner of choice, and helping to fuel global commerce by connecting the world’s leading marketplaces and payment networks,” PayPal said in a statement.
This is in line with what Farhad Maleki, PayPal's head of corporate and venture development for the Asia Pacific, has said. According to him, the collaboration would open up new opportunities for merchants not yet connected to a banking service.
And as for Gojek, the investment would give it the access to PayPal's network of 25 million merchants worldwide.
"Now, with the contribution of the best technology companies in the world as partners, we believe we can continue to provide world-class products and services that are unique to all parties in the Gojek ecosystem," said Gojek Co-Chief Executive Kevin Aluwi.
In a separate statement, Gojek said it had helped more than 100,000 micro, small and medium enterprises expand online in the past three months amid the 'COVID-19' coronavirus pandemic.
Gojek was founded in 2010 as a motorcycle ride-hailing call center. Gojek launched an app about five years later, that soon turned into a 'super app' that offers a wide range of services, including deliveries, takeaway food and financial services.
With prominent backers, Gojek is considered as Indonesia's first decacorn startup, meaning that it has a valuation of over $10 billion.