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Indonesia's Go-Jek Raises $550M Funding Led by @KKR_Co, Warburg Pincus

Indonesia's Go-Jek Raises $550M Funding Led by @KKR_Co, Warburg Pincus

China’s ride-sharing leader Didi Chuxing agreed to acquire UberChina. Now Didi and Japanese giant SoftBank are said to be leading a $600 million investment in Singapore’s ride-hailing behemoth Grab (GrabTaxi, GrabCar, GrabBike), Uber’s most powerful rival in Southeast Asia. Motorcycle taxis are a very common form of unlicensed transport in Indonesia, where they are known as ojek. The motorbike taxis typically carry one passenger, who rides as the pillion behind the driver. Multiple passengers are common in some countries. Ojek can be found throughout Indonesia, from towns where traffic jams commonly hinder other forms of transport, to rural areas inaccessible by four-wheeled vehicles. Because of traffic, ojek are often the fastest form of transport, especially in Jakarta. Many people choose them over taxicabs, which are safer, but slower and more expensive. The widespread availability of cheap, domestic motorcycles made by Honda, Yamaha, and Suzuki, and even cheaper ones imported from China, as well as credit schemes with which to purchase these, have resulted in the rapid growth of ojek. The ease with which driver’s licenses can be obtained has also been a contributing factor. Founded in 2010, Go-Jek is the first Indonesian mobile platform that touches across socio-economic classes and verticals at a high transaction frequency that includes transportation, food delivery, same-day delivery, grocery shopping, household cleaning, beauty and health and ticket sales. Go-Jek’s motorcycle transport service, Go-Ride, is the biggest service of its kind in Indonesia with more than 200,000 drivers. Outside of motorcycle transport, Go-Food is the second largest on-demand food delivery service in the world outside of China with over 15 million meals delivered since inception. Go-Pay, launched in April 2016, is now a fast-growing e-wallet solution in Indonesia. With credit card penetration in Indonesia at under 2% and online payment nascent, Go-Pay is essential in enabling a seamless transaction experience on Go-Jek services. Go-Jek and Go-Pay are best-positioned to capture wallet share from a growing online user base. Go-Jek’s mobile applications have been downloaded more than 20 million times as of June 30, 2016. In June 2016 only, there were over 20 million bookings on the Go-Jek platform, translating to roughly eight bookings per second being processed in that month. “Go-Jek is unique in its ability to be the number-one service provider across almost all key categories and the company has a real opportunity to strengthen its position as a leading mobile platform in Indonesia,” said Terence Lee, Director at KKR Asia. “We are excited to partner with Nadiem, Kevin, Andre and the entire Go-Jek management team. With a rapidly expanding middle class, increasing urban density and a young demographic that is internet savvy, Go-Jek is well positioned to become the ‘go to’ platform for high frequency daily services including transport, food, logistics and payment,” said Jeffrey Perlman, head of Southeast Asia for Warburg Pincus. “KKR, Warburg Pincus, Farallon, Capital Group and other participants in this fundraise not only bring global experience in the TMT sector, but they are also experienced local partners. With their support and investment, Go-Jek is poised to build on its initial success to become the largest on-demand application of choice for all Indonesians and improve the daily lives of more than 200,000 motorcycle and car driver partners, more than 35,000 Go-Food merchants whose businesses we helped grow and more than 3,000 service providers on our other on-demand services,” said Go-Jek co-founder and CEO Nadiem Makarim, a former McKinsey associate and Harvard MBA graduate. Indonesia, with the world’s fourth-largest population of more than 250 million people, is rapidly becoming a digital nation. Indonesia has 88.1 million active internet users and 36 percent of the population carry smartphones. Half of all smartphone users in Jakarta are users of Ojek mobile app services, having at least one such mobile app installed on their smartphones, according to Asian market research agency Cimigo. “Almost everyone in the mobile app Ojek market have used Go-Jek, a third have used GrabBike – usage of other brands is rare,” it says.]]>

CVC Capital Offers $1.1 B Buyout of Nirvana, Asia's Top Funeral Parlor

CVC Capital Offers $1.1 B Buyout of Nirvana, Asia's Top Funeral Parlor

Financial Times. “The Malaysian company has rolled out an unusual business model across Southeast Asia: pre-selling burial plots and funeral services to the living.” “We don’t use conventional methods to sell our products,” says Kong Yew Foong, an executive director and son of founder Tan Sri Dato’ Kong Hon Kong. “We don’t wait for the customers to come in.” Nirvana Asia, which calls itself the “largest integrated death care service provider in Asia,” offers premium tombstones, columbarium facilities, funeral services, and burial plots in six countries across Asia, including Malaysia, Singapore and Indonesia, mostly to ethnic Chinese Buddhists and Taoists. The company employs over 700 staff across the region. Kuala Lumpur, Malaysia-based Nirvana went public on the Hong Kong stock exchange in December 2014, raising HK$1.9 billion ($250 million) in a so-called “death care” IPO, following in the footsteps of its peer Fu Shou Yuan, a luxury Chinese cemetery and funeral chain, that raised about the same amount a year earlier, but has been trading recently at much higher valuation multiples than Nirvana. Nirvana’s largest, most-lucrative, and fastest-growing business is in so-called “niches,” or reserved spots for relatives to leave the urns of the deceased. The company also has significant real-estate holdings in Malaysia. Overall, the company has a land bank of 3 million sqm, most of it in Malaysia, which reportedly generates more than 80% of revenue. The company had revenues of $149 million in 2015. Nirvana’s cemeteries command “excellent Feng Shui” alongside breathtaking landscaping, the company says. Nirvana began operations at its Singapore columbarium facility in 2009 after its acquisition and renovation. It is the only commercial columbarium facility in Singapore. The company uses high quality materials in the construction of niches and currently has plans to expand its Singapore facilities to increase the capacity by 24,640 double niches. Tan Sri Dato’ Kong, who founded the company in Malaysia in 1990 and serves as chief executive, owns 43% of the company, which employs his five children. Born to a rubber tapper in Malaysia in 1954, he was prompted to found Nirvana by the death of his father-in-law in 1985, at a time when there were no private cemeteries or premium funeral services in Malaysia. CVC is advised by JP Morgan and Clifford Chance. Nirvana is advised by UBS and Sullivan and Cromwell. Fully committed debt financing is being provided by CIMB. CVC Capital Partners, headquartered in Luxembourg, is one of the world’s leading private equity and investment advisory firms. Founded originally in 1981 as the European arm of Citicorp Venture Capital, the CVC Group today employs some 300 people throughout Europe, Asia and the US. The firm was spun out from Citicorp in 1993, as an independent private equity firm. The CVC team’s local knowledge and extensive contacts underpin a proven track record of over 30 years of investment success. CVC manages capital on behalf of over 300 institutional, governmental and private investors worldwide, having secured commitments of more than US$71 billion in private equity, credit and growth funds. In late May, CVC Capital acquired Italian gaming and payments operator Sisal Group SpA, from Apax Partners, Permira and Clessidra for €1 billion. [caption id="attachment_431698" align="aligncenter" width="1024"]Bernie Ecclestone, CEO of Formula One Group, with Donald Mackenzie, Co-Founder and Co-Chairman of CVC Capital Partners (L-R) Bernie Ecclestone, CEO of Formula One Group, with Donald Mackenzie, Co-Founder and Co-Chairman of CVC Capital Partners.[/caption] A few weeks earlier, CVC Capital acquired a majority stake in German gaming company Tipico for close to €1.5 billion ($1.68 billion). In December 2014, CVC acquired Sky Betting and Gaming for £800 million, consisting of five core brands Sky Bet (sports betting), Sky Vegas (online in-browser casino), Sky Casino (premium online casino, live table games), Sky Poker (online poker) and Sky Bingo (online bingo). CVC also made previous investments in British sports betting operator William Hill (2002 IPO exit, at 314% ROI) and the IG Group, a digital trading and betting platform. CVC Capital also gained control of the Formula One Group in 2006 in a leveraged buyout funded with two loans – $965.6 million from its Investment Fund IV and $1.1 billion from RBS, turning the firm into the biggest winner in the history of the Formula One grand prix.]]>