Go-Jek, Indonesia’s first billion-dollar tech startup, has agreed to acquire three local fintech firms as it seeks to expand its grip on the digital payments market.
The deals involve Kartuku, a leading offline payments processing company in Indonesia; Midtrans, said to be the nation’s top online payment gateway; and Mapan, a community-based savings and lending network, Go-Jek announced in a statement today. The value of the deals were undisclosed.
Together, the three companies process close to US$5 billion worth of debit and credit card, as well as digital wallet transactions for users, service providers, and merchants.
“We are now taking Go-Jek to the next stage,” said its founder and CEO Nadiem Makarim, adding that it is a significant move in the company’s plan of dominating the payments space.
Go-Jek started out with motorcycle-hailing, then added private cars to take on rivals Uber and Grab head-on. As it forged ahead in Indonesia’s transportation battle, it also expanded into other on-demand services like food and medicine deliveries, parcel couriers, cleaners, and massages. Its digital wallet Go-Pay is what its customers use to pay for these services.
Grab has also branched out into payments with its own wallet, which was reportedly facing regulatory hurdles in Indonesia.
“When the acquisitions are finalized, the management teams and employees will continue to operate as before, but will benefit from synergies as part of the group,” explained Go-Jek president Andre Soelistyo.
The CEOs of the three acquired firms will take senior management positions at Go-Jek. Thomas Husted of Kartuku will become Go-Jek’s CFO, Mapan’s Aldi Haryopratomo will lead Go-Pay, and Midtrans’ Ryu Suliawan will lead the group’s merchant platform.
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