Facebook and PayPal invest in ride-hailing firm GoJek
Facebook and PayPal made investments in ride-hailing giant GoJek as it gains popularity in Southern Asian countries.
Both companies joine Google and Tencent among other high-profile technology firms that have backed the five-year-old startup.
The platform, which also offers food delivery and mobile payments, is holding an ongoing Series F financing round which brings it total raise-to-date over $3bn.
It was the first time Facebook invested in the company and neither the social media platform nor PayPal have disclosed the size of their checks.
For Facebook, backing GoJek allows it to help millions of small businesses — while finding a business model for WhatsApp, an advertisement-free instant messaging service it owns.
Matt Idema, chief operating officer at WhatsApp, said the company will work with “indispensable” GoJek to “bring millions of small businesses and the customers they serve into the largest digital economy in Southeast Asia.”
“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 wrote in a blog post.
PayPal said Wednesday’s commercial partnership will enable the global payments giant 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.