Transport and delivery giant Grab Holdings has more than doubled its stake in Indonesian mobile wallet operator Ovo as competition intensifies in Southeast Asia’s largest e-commerce market.
The Singapore-based superapp, which plans to be listed on Nasdaq by merging with blank check firm Altimeter Growth Corp. by the end of the year, will increase its stake in Ovo’s parent company, PT Bumi Cakrawala Perkasa, to 90%, from around 39%, Bloomberg reported on Monday, citing a filing with the Department of Legal Affairs . Grab will buy additional shares of Ovo from e-commerce company Tokopedia and billionaire Mokhtar Riady’s Lippo group, according to the report.
While Ovo confirmed that Grab was increasing its stake in the company, he declined to provide details, pending the transaction’s finalization. “We are delighted to complete the first part of a larger exercise to restructure our property,” the company said in an emailed statement. “We welcome increased engagement from Grab in Ovo. We are working closely with regulators to complete the property restructuring process, and are confident that this will allow us to better meet the service needs of Indonesians. financial. “
Ovo is the leading e-wallet platform in Indonesia, preferred by 54% of consumers, while GrabFood was chosen by 48% for food deliveries, Grab said last month, citing a survey conducted by Nielsen in July. . Indonesia’s fast-growing digital economy is expected to reach $ 124 billion by 2025, up from $ 44 billion last year, according to a 2020 study by Google, Temasek Holdings and Bain & Company.
Grab competes for superapp dominance in Indonesia against local ridesharing and payments giant GoTo, spun off from the Gojek and Tokopedia merger, and Shopee, which is owned by Singapore-based Sea Group, the world’s largest tech company in the world. ‘Southeast Asia by Market Cap.
The company also took strategic steps ahead of its merger with Altimeter, which values the combined entity at $ 40 billion. In July, it formed an alliance with e-commerce company Bukalapak to strengthen its position in the country.
Yesterday, Grab said that Alex Hungate, who has stepped down as CEO of in-flight catering and ground handling company Sats, will be his new COO from January 2022. Hungate will help create synergies between Grab’s activities which have expanded to several new segments over the past three years, he said in a statement.
Co-founded in 2012 by Anthony Tan and Tan Hooi Ling as a taxi booking app, Grab has since grown into a super app by expanding its business to ridesharing, food delivery and digital financial services. The company now serves customers in more than 400 cities in Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.