In all likelihood, Grab will probably buy Indonesian online payment startup Kudo for over US$100 million as reported by Reuters. This is further establish the ride-hailing firm’s presence the Southeast Asia region to roll out more services.
The deal is said to be a part of the company’s plans to invest US$700 million in Indonesia over the next four years to support Indonesia’s goal of becoming Southeast Asia’s largest digital economy by 2020. This is a part of the “Grab 4 Indonesia” 2020 master plan, endorsed by Badan Koordinasi Penanaman Modal (BKPM), the Government of Indonesia’s Investment Coordinating BoardGrab.
Kudo, which was founded in 2014, facilitates online transactions for Indonesian consumers. The company’s target consumers are those which hold no back account in smaller towns and cities of the region, helping them to make purchases online through its agents.
Moreover, the company, last year, announced a partnership with the Lippo Group, to implement an e-money payments platform in Indonesia.
As a result of this over 50 million existing customers from the two companies are now able to pay via their mobile phones or use their Grab App to pay for a full suite of services from Lippo’s retail companies, including department stores, hypermarts, cinemas, coffee shops and e-commerce.