Tech Business

Go-Jek Hits US$10 Billion Market-Valuation (5 Apr)

According to CB Insights, a US market intelligence company, Go-Jek, a ride-hailing app based in Indonesia, has become the country’s first “decacorn” – a privately held start-up with a valuation of ten billion dollars or more. Go-Jek received capital injections of US$1.5 billion in 2018, and US$1 billion in the first quarter of 2019, and its investors include Google, Temasek Holdings, Tencent, and Meituan Dianping. Go-Jek is ranked by CB Insights as the 19^th largest unicorn in the world – its regional rival Grab, with a value of US$11 billion, is placed 13^th.

Sources: Jakarta Post, Bloomberg

Grab Seeks US$2 Billion Funding in Expansion Drive (8 Apr)

Grab is looking to raise another US$2 billion this year to ramp up expansion, only weeks after announcing more than $4.5 billion of funding in what has become Southeast Asia’s largest round of private financing. Its investors include SoftBank, Toyota, Microsoft, Hyundai, and Didi Chuxing. Grab is looking to expand its services, from transport to food delivery and payments, in its race with Indonesia’s Go-Jek to be the region’s super-app, and expects to invest a significant portion of the funds in Indonesia.

Source: Reuters

Carousell Valued at Over US$550 Million Following Deal with Naspers’ OLX (10 Apr)

Classifieds giant OLX Group has taken an approximate 10 per cent stake in Carousell in a deal worth US$56 million. As part of the deal, Carousell will acquire OLX Philippines, which claims to be the largest online classifieds site in The Philippines, with over 6 million unique users monthly. The deal will value Carousell at more than US$550 million and also make it the largest mobile classifieds marketplace in Southeast Asia, the start-up said.

Source: Business Times

Grab Unlocks US$3.3 Billion in Additional Income for Drivers and Merchants: CSIS (11 Apr)

According to a survey conducted by Indonesia’s Centre for Strategic and International Studies (CSIS), Grab contributed Rp 46.2 trillion ($3.3 billion) to Indonesia’s informal economy last year in the form of additional income for drivers and food merchants. The survey found that ride-hailing services allowed drivers to double their monthly average income. Food merchants, all of whom were micro and small businesses, also experienced an average 25 percent increase in daily sales. The release of the think tank’s findings comes just weeks after a Universitas Indonesia study found that rival “super app” Go-Jek added 44.2 trillion rupiahs (US$3.12 billion) the country’s economy last year.

Sources: Jakarta Post, Tech in Asia

ShopBack Raises US$45 Million in Equity Funding Round (11 Apr)

Local cashback platform ShopBack raised US$45 million in an equity funding round, bringing its total funding to US$83 million. Its new investors include Rakuten Capital, EV Growth, and the investment arm of Singapore’s EDB. ShopBack, which is also backed by Japan’s SoftBank Ventures Asia, says its new round of funding will be used to simplify shopping experiences, expand data capabilities to fuel personalisation and business insights, as well as accelerate growth in key markets.

Sources: Straits Times

Singapore Ranks 5^th out of 6 ASEAN Countries in Growth of Mobile Payments Use: PwC (12 Apr)

According to PwC’s Global Consumer Insights Survey 2019, Singapore ranks fifth out of six ASEAN countries for growth in mobile payments use, while Vietnam tops the ranking both regionally and globally. Use of mobile payments in Singapore climbed 12 percentage points from 34 per cent of consumers surveyed in 2018 to 46 per cent in 2019. Vietnam saw a 24 per cent increase in mobile payments usage growth, from 37 per cent of 2018 to 61 percent in 2019. Experts say that Singapore’s established traditional ecosystem and abundance of mobile payment options may have slowed down adoption, whereas Vietnam’s low penetration of 2018 allowed it to register high growth.

Sources: Business Times

Tech Policy

Payment Connectivity a Priority at the ASEAN Finance Ministers Meeting (5 Apr)

At the ASEAN Finance Ministers Meeting in Chiang Rai, the Bank of Thailand signed numerous MoUs with the central banks of ASEAN member states to boost the integration of payments services, through financial innovations such as interoperable QR codes and blockchain. Ravi Menon, managing director of MAS, announced that the pilot effort between Thailand and Singapore to link their payment systems – PromptPay and PayNow, respectively – will go live by the first half of 2020. In their joint statement, the ASEAN Finance Ministers welcomed the development of a regional framework to integrate real-time retail payments, which can lower the cost of services and encourage local currency use in cross-border transactions.

Sources: Nation

Indonesian Government Revokes Planned E-Commerce Regulations (29 Mar, 8 Apr)

The Indonesian government has retracted rules requiring e-commerce sellers to share data with tax authorities, which were scheduled to come into enforcement on 1 April. The rules required online marketplaces to share each seller’s turnover and personal data with tax authorities, in order to clarify the taxes each player is obliged to pay. Representatives of online marketplaces and retailers have welcomed the decision, having voiced concerns that the rules would halt the growth of Indonesia’s nascent e-commerce industry and discourage small businesses from going online.

Sources: Reuters, Jakarta Post

Malaysia Parliament Passes Digital Tax Bill (8 Apr)

The Malaysian government will impose a digital service tax of six per cent on foreign digital service providers next year. Examples of digital services include online music and video subscription, online marketplaces, and cloud computing. Deputy Finance Minister Amiruddin Hamzah said that the tax is meant to create a level playing field, as only local digital service providers are currently required to pay tax, with foreign providers exempted. He added that New Zealand, Russia, and Norway have imposed higher taxes – 15%, 18%, and 25% respectively – compared to Malaysia’s 6%.

Sources: Malay Mail, Free Malaysia Today

Indonesian Government Launches Foundation to Boost Home-Grown Unicorns (14 Apr)

Indonesia’s Communications and Information Ministry launched the Next Indonesia Unicorn Foundation, as part of an effort to bolster the country’s fast-growing digital ecosystem. The foundation is expected to assist and accommodate the long-term development of the country’s startup companies, so that they could achieve unicorn status – a private valuation of more than US$1 billion. The launch of the foundation signals the Indonesian government’s dedication to nurturing home-grown start-ups – in 2016, it committed to growing 1,000 start-ups worth US$10 billion.

Sources: Jakarta Post

Malaysia Welcomes Huawei Despite Western Concerns (15 Apr)

Following a tour of the company’s global training centre in Malaysia, Deputy International Trade and Industry Minister Dr Ong Kian Ming said that the Communications and Multimedia Ministry would conduct its security tests on Huawei’s 5G equipment, but welcomed the Chinese telecoms giant to Malaysia, acknowledging the benefits of Huawei’s investments into its industry and workforce. The US has been applying pressure on Huawei, banning federal agencies and recipients of state funds from using its equipment over security concerns. While the US has succeeded in persuading members of its Five Eyes Alliance – namely Australia and New Zealand – to ban Huawei from providing 5G network equipment, Southeast Asia countries have largely been unaffected by US warnings.

Sources: SCMP, SCMP