atans1

Posts Tagged ‘Go-Jek’

S’pore, Indonesia doing well in unicorn breeding

In Indonesia on 26/08/2019 at 3:00 pm

A unicorn is a privately held startup company with a current valuation of US$1 billion or more.

S’pore’s got two: Grab (the mobility platform that wants to conquer SE Asia) and Trax (Computer vision technology for use in retail industry: FT builds tools for bricks-and-mortar retail)

Whatever, we are doing pretty well in unicorn breeding. We’ve got two, while Japan has only three.

But then Indonesia has four  Go-Jek, Tokopedia, Traveloka, and Bukalapak.

Go-Jek is a mobility platform that also wants to rule SE Asia. Tokopedia and  Bukalapak are e-commerce businesses Traveloka provides airline ticketing and hotel booking services online.

SingTel, Hong Leong will get digital bank licences

In Banks, S'pore Inc, Telecoms on 01/07/2019 at 5:06 am

MAS to issue up to five new digital bank licences: SM Tharman

Constructive, nation building media

It’s a nap that two of the licences will go to SingTel (or a SingTel jv) and Hong Leong Group

SingTel or a jv led by it will get one of the two digital full bank licences, which will allow licensees to provide a wide range of financial services and take deposits from retail customers. The focus of a SingTel bank will be regional remittances via its regional network of telcos. Think of all the Peenoy and Indon maids who remit money via remittance firms.

Grab or Go-Jek could decide to try to cut a deal with SingTel, rather than apply for a virtual bank licence themselves because they can bring to the party a regional presence via their apps etc. But SingTel may be too greedy to do a jv. I suspect the authorities will make SingTel tie up with Go-Jek or Grab. But the other co will not be left out in the cold (see below) because I think the authorities want competition here between the two and because Temasek has stakes in both: Temasek, GIC got this right in our backyard. Related post: Offered money, Grab it

Hong Leong group will get one of the up to three digital wholesale bank licences, which will allow licensees “to serve SMEs (small and medium-sized enterprises) and other non-retail segments”. Hong Leong Finance is a de facto SME bank though people like Inderjit Singh and Jack Sim are not happy with the way it does biz, and are forever KPKBing for really cheap financing for SME owners, even though it’s a fact that SME owners often divert biz loans to buy property.

Grab, Go-Jek and Razor will try for the other virtual bank licence, though I think they’ll have to find a S’porean partner because

Companies headquartered in Singapore and controlled by Singaporeans will be able to apply for digital full bank licences.

Foreign companies who wish to apply must form a joint venture with a Singapore company, the authority added. The joint venture must meet the headquarter and control requirements. Digital wholesale bank licences are open to all companies.

I’m sure they will try to get M1 owned by Keppel and SPH to partner one of them.

But as I said for Grab and Go-Jek working with SingTel could be a better bet if SingTel is not too greedy. The other could then tie up with M1.

As to Razer? Razer? Who the f@#! is Razer?

 

 

 

 

HoHoHo: Bad news for Go-Jek and Grab

In Indonesia, Malaysia, Temasek, Vietnam on 11/05/2019 at 5:32 am

Uber’s shares sank almost 8 per cent below their offer price on Friday, giving the ride-hailing company a disappointing market value of below $70bn — a far cry from the $100bn valuation it had until recently hoped to achieve.

FT today

Meanwhile Lyft which was valued at U$22.4bn at its IPO closing price (up 9% from its offer price). By May 7th, the day it reported results for the first quarter as a public company, it was worth only US$17bn. Lyft’s share price fell by another 11% the next day.

These performances have

left investors questioning the appetite for unprofitable car-booking companies that have relied on a flood of private capital to fund heated expansion and competition.

FT

As Economist says

Both firms have enough cash to continue to burn money for years, but public investors expect a rapid path to profitability. Making it into the black will require either raising prices or reducing the cut of bookings passed on to drivers. The former will be hard; in many markets ride-hailing competes with other cheap modes of transport, such as buses, bicycles and riders’ own cars.

Think Grab and Go-Jek, and Temasek that has invested in them. Grab and Go-Jek are also losing money.

Btw, in 2018 according to an article in the Tiền Phong newspaper, GIC realised a 60% loss over 4 years after it sold 5.4 million shares in Vietnamese taxi operator Vinasun.

 

Ho Ho Ho: Google agrees with Temasek

In Indonesia, Internet, Private Equity, Temasek on 31/01/2018 at 7:31 am

Years ago, Temasek (along with big private equity firms KKR and Sequioa) invested in Indonesian unicorn Go-Jek. The company provides ride-hailing, food delivery and e-payment services.

Well now, Google has invested in Go-Jek as it seeks to further tap Indonesia’s growing internet economy. Google said on Monday it had chosen to invest in Go-Jek as “there was still more we can do to support and participate in Indonesia’s growth”, noting the country is home to the world’s fifth-largest population of internet users. It did not disclose the size of the investment.

Cybernuts should remember that Temasek and Ho Ching don’t always get things wrong (HO HO HO: How Shi**y is StanChart?).

In fact, Temasek (and GIC) like other professionally run SWFs (Think the Arabs but not the Chinese. Think the Chinese investment in Noble House that will be almost wipewd out.) often get investments more right than wrong.

Another deal Temasek (and GIC) got right: Xiaomi’s IPO will make anti-PAPpyists frus.