Indonesia-based ride-hailing startup Go-Jek has raised the first close of its series F round of funding from Alphabet’s Google, JD.com and Tencent Holdings. The startup has recently set up its engineering facility in Bengaluru.
The company has not revealed the exact funding amount but several media report suggest that the company has raised ₹7,000 crores ($1 billion) as a part of the round. The company is looking to close the round at ₹14,000 crores ($2 billion).
Founded by Nadiem Makarim in 2011, the eight-year-old startup initiated as a bike-taxi service and has expanded into food, courier and grocery delivery services in Southeast Asia since then. The firm competes with global cab aggregator Uber as well as local cab aggregator Grab in Indonesia.
In 2016, the Indonesian startup set up its engineering and development facility in Bengaluru with 100 engineers. It acquired mobile application platforms Left-shift and Pianta, software development firm C42 Engineering and development & operations firm CodeIgnition to gain access to India’s product development and engineering talent.
The company has not yet launched its services in India. But the rapid expansion and talent acquisition program suggest that it may have plans to enter the Indian market. In October 2018, the company announced that it will hire 200 more engineers in Bengaluru to expand its development processes.
If the company launches in India, it will face strong competition with Bhavish Agarwal led Ola, Bengaluru-based ONN Bikes, Metrobikes, Ola-backed Vogo as well as global giant Uber. Indian market is a huge opportunity for these startups.
According to a RedSeer Consulting report, the Indian online mobility market contributed more than 15 per cent of the industry’s overall gross book value (GBV) in 2017. A report from Statista suggests that India’s two-wheeler segment witnessed 2 crore sales, making it the most popular category sold in India.
What do you think about the deal? Will Go-Jek penetrate India? Tell us in the comments.