Gojek raises $1.7b despite clash with Grab

This gives Gojek the upper hand on the reported possible merger with Grab.

Southeast Asian ride-hailing giant Gojek has raised $1.7b (US $1.2b) for expansion, defying tech-sector turbulence and the coronavirus pandemic to secure funds to take on Grab Holdings Inc, according to a report by Bloomberg.

The new capital puts Gojek in a stronger position in any negotiations with Grab, as the two startups have reportedly discussed a possible merger, although Gojek has denied such reports and said it has no plans for any sort of combination.

Despite this, more money would allow Gojek to negotiate from a position of strength if they do decide to swap assets in certain countries or proceed with a full-blown merger.

Both companies are losing money as they expand in ride-hailing, meal deliveries and payments, prompting some of their investors to favour a truce. However, regulators in Singapore, Indonesia and other countries are likely to oppose any deal that reduces competition.

Read the full report here.