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Indonesian telco Telkomsel invests $ 150 million in Gojek

Telkomsel, Indonesia’s largest telco, has invested $ 150 million in Gojek, the two companies reported on Tuesday.

As part of the ‘strategic partnership’, Gojek and Telekomsel will explore a wide range of collaboration opportunities to reach even more Indonesians.

Gojek and Telkomsel

Gojek and Telkomsel are already working together. In 2018, a deal was struck whereby Gojek drivers receive a discount on the mobile data they use while driving.

With more than 170 million subscribers, Telkomsel is the largest telecom operator in Indonesia. Gojek once started as a ride-hailer, but now the company offers financial services and food delivery, among other things.

Gojek, which has raised more than $ 3 billion in funding rounds to date, was valued at $ 10 billion earlier this year. The company is backed by some of the biggest names in the tech world, including Facebook, Google, PayPal and Tencent.

Gojek, which also serves approximately 170 million users, is competing with the likewise widely-backed company Grab, which is reportedly in talks to raise an additional $ 3 billion from Alibaba.

Merger

The two loss-making partners have resumed talks about a merger in recent months, despite the corona pandemic, according to various sources. According to analysts, this merger could be the key to profitability for the couple. The companies have declined to comment on these alleged merger talks.

“This is a great day for Gojek and for Indonesia. We are honored to strengthen our partnership with Telkomsel, one of Indonesia’s most forward-looking telecommunications companies. Working together, we hope to help Indonesia become a digital powerhouse in Southeast Asia. We also want to bring the benefits of the digital economy to millions of consumers, drivers and small businesses, ”Andre Soelistyo, Gojek co-CEO said in a statement.

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