NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, December 21, 2017

Ride-hailing start-up Go-Jek has acquired three financial technology (fintech) start-ups as it looks to dominate Indonesia’s digital payments space.

Go-Jek said Friday it had bought offline payments service Kartuku, payment gateway Midtrans and saving and lending firm Mapan for undisclosed amounts.

The firm, which began life as a motorbike and taxi business, has expanded its offering to include food delivery and payments. Go-Jek said the acquisition would be a vital component in its aim to lead Indonesia’s payments sector.

“Through the acquisitions announced today, we will be working hand-in-hand with three likeminded companies who share our vision and ethos,” Nadiem Makarim, founder and chief executive of Go-Jek, said in a statement. “This marks a significant development in our position at the heart of Indonesia’s vibrant fintech industry.”

Go-Jek said the acquisition move would bolster its activity in both online and offline payments, as well as increase engagement in the financial services in Indonesia. Go-Jek’s mobile payments service Go-Pay is one of the most popular payment platforms in Indonesia.

Photo courtesy of Ava Systems.