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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.]]>

Ride-Sharing App Via Raises $100M Series C Led by Pitango

Ride-Sharing App Via Raises $100M Series C Led by Pitango

Via is re-engineering public transit—from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network. The Via algorithm matches, in real time, multiple passengers headed the same way with a single large SUV or van. Passengers request rides through a mobile app, and Via’s systems instantly select and, if necessary, re-route the vehicle that best matches the passenger’s route. Targeting the gap between outdated public transit and expensive luxury car services, the Via platform currently operates in New York City and Chicago, has provided more than four million rides, and is growing rapidly. Founded in 2012 by Daniel Ramot and Oren Shoval, who previously led engineering projects for the Israeli Air Force and have PhDs in neuroscience and systems biology from Stanford University and the Weizmann Institute of Science, respectively, the idea for Via came from Israel, where many people rely on shared vehicles called sheruts to travel quickly, cheaply and easily along major streets. Via is headquartered in New York, with offices in Tel Aviv and Chicago. Pitango, the leading venture capital firm in Israel, has been investing in technology entrepreneurs since 1993. With offices in Israel and Silicon Valley, California, Pitango currently manages over $2 billion in committed capital across several funds. Pitango Growth is a fund dedicated to investing in growth companies in their expansion and scale-up phases. To date, Pitango has invested in more than 210 companies, among them companies that have gone public, such as Varonis (NASDAQ: VRNS), and Borderfree (NASDA Q: BRDR), and companies that were acquired, such as Check (acquired by Intuit), dbMotion (acquired by AllScripts), Anobit (Acquired by Apple), Optonol (acquired by Alcon), and Ventor (acquired by Medtronic). Pitango invests in seed, early stage, and growth companies in the IT, Life Sciences, and Cleantech industries. 83North, formerly Greylock IL, is a global venture capital firm with more than $550 million under management. The fund invests in exceptional European and Israeli entrepreneurs, across all stages of consumer and enterprise companies. With offices in London and Tel-Aviv, 83North is the sum of the latitudes of these two main hubs of operation. 83North started as Greylock IL, and remains deeply rooted in the main US tech hubs, with over half of its portfolio companies having operations in the US. Hearst Ventures has grown since its initial investment in Netscape in 1995, to become one of the most active and successful corporate venture funds, with more than $1 billion in strategic investments in companies operating at the intersection of media and technology.]]>

On-Demand Transit App Via Raises $27 Mln Series B

On-Demand Transit App Via Raises $27 Mln Series B

Car-Service-Debate---On-Demand-vs.-Traditional Via’s mobile app connects multiple passengers who are headed the same way, allowing riders to share a chauffeured, premium vehicle at highly affordable rates – currently $5 (if prepaid) or $7 (for a single ride). Average pickup times are under 10 minutes, and trip durations are comparable to a taxi, despite the complexities inherent in matching routes for multiple passengers. The company’s proprietary algorithm dynamically matches passengers with seats at scale, solving unique computational and operational challenges and resulting in a more affordable and convenient mode of transportation. Via has been approved for pre-tax transit benefits, allowing members to pay for the service using pre-tax dollars. First launched in New York City in September, 2013, Via currently provides New Yorkers with tens of thousands of rides per week and has provided over 300,000 shared rides in total. 40,000 members have signed up for the service, 90% of which have come through word-of-mouth referrals. All Via drivers—now more than 500 of them—are TLC licensed and drive premium vans or SUVs. The company currently operates between 32nd to 110th streets in Manhattan and is expanding rapidly. Chemi Peres, a managing general partner and co-founder of Pitango VC, has joined the Via board of directors. “Today’s cities require a new approach to their transit challenges, but most solutions don’t address the very real problems of too many vehicles on the road and not enough affordable and convenient transportation options,” said Chemi Peres. “Via has a solution that will reduce traffic while getting people to their destinations faster and more comfortably. Via has built an impressive technology infrastructure to solve one of the world’s transit problems, and we are proud to invest in the company and the team.” The financing will be used to break into new markets, to accelerate product growth and development, and for hiring in key areas. Via is re-engineering public transit—from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network. The Via algorithm matches, in real time, multiple passengers headed the same way with a single large SUV or van. Passengers request rides through a mobile app, and Via’s systems instantly select and, if necessary, re-route the vehicle that best matches the passenger’s route. Targeting the gap between outdated public transit and expensive luxury car services, the Via platform has been operating in NYC since September 2013. It currently provides tens of thousands of rides per week and is growing rapidly. Founded in 2012 by Daniel Ramot and Oren Shoval, who previously led engineering projects for the Israeli Air Force and have PhDs in neuroscience and systems biology from Stanford University and the Weizmann Institute of Science, respectively, the idea for Via came from Israel, where many people rely on shared vehicles called sheruts to travel quickly, cheaply and easily along major streets. Via is headquartered in New York, with offices in Tel Aviv. Pitango Venture Capital, the leading venture capital firm in Israel, has been investing in technology entrepreneurs since 1993. With offices in Israel and Silicon Valley, California, Pitango currently manages several venture funds totaling over $1.6 billion in committed capital. It is invested in more than 180 companies; among them are companies that have gone public, such as JinkoSolar and Radware, and companies that were acquired, such as dbMotion (acquired by AllScripts) Anobit (acquired by Apple) and Provigent (acquired by Broadcom). Pitango invests in seed, early stage start-ups, as well as growth phase companies in the IT, Life Sciences and Cleantech industries. Hearst Ventures makes strategic investments in companies operating at the intersection of media and technology. Starting with its investment in Netscape in 1995, Hearst Ventures has grown to become one of the most active and successful corporate venture funds. Notable investments include Pandora, Brightcove, XM Satellite Radio, Eink, Sling Media, Exodus, Broadcast.com, Hootsuite, IGG and Buzzfeed. Hearst Ventures is a unit of Hearst Corporation, one of the nation’s largest diversified media and information companies. 83North is a global venture capital firm with more than $550 million under management. The fund invests in exceptional European and Israeli entrepreneurs, across all stages of consumer and enterprise companies. With offices in London and Tel-Aviv, 83North is the sum of the latitudes of these two main hubs of operation.]]>