Facebook and PayPal back Indonesian digital payment company Gojek
Indonesian-based digital payment company Gojek has announced Facebook and PayPal have joined existing investors Google and Tencent in its current funding round.
According to Gojek, the additional funding will be used to support expansion plans for its payments business GoPay across Southeast Asia. The company said it plans to focus on helping micro, small, and medium enterprises digitise their payment infrastructure.
"Since we were founded, the story of Gojek's growth has been inexorably linked with the growth of the micro-entrepreneurs and small businesses on our platform and this will always be the case," Gojek Co-CEO Kevin Aluwi said.
"With some of the world's best technology companies as partners, we are confident that we can continue to deliver unique world-class products and services for the various players in our ecosystem."
The investment amount made by each tech giant remains undisclosed.
See also: 6 essential mobile payments apps small businesses need to know (TechRepublic)
It is the first time Facebook has made an investment in an Indonesian-based company. It said the reason behind the investment was to support the growth of small businesses.
"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," Facebook said in a blog post.
"This investment will support Facebook and Gojek's shared goal of empowering businesses and driving financial inclusion across the archipelago."
Last month, Facebook invested $5.7 billion, or ₹43,574 crore, to become the largest minority shareholder in Indian telco Reliance Jio.
The social network said at the time the motivation for the investment was to boost India's digital economy, especially its 60 million small businesses.
Gojek also announced that as part its commercial agreement with PayPal, PayPal's payment capabilities would be integrated into its services, and the two companies would collaborate to allow GoPay customers to access PayPal's merchant network.
Gojek was first established in 2010 as a motorcycle ride-hailing service in Indonesia before launching its app in 2015, which has become a one-stop shop for more than 20 services, including transport, payments, food delivery, and news and entertainment.
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