Acquire a majority stake in Indonesian e-wallet OVO

Texas News Today

FILE PHOTO: OVO payment signs stand at a mall in Jakarta, Indonesia, on November 8, 2018. Photo taken on November 8, 2018. Reuters / Beautician / FILE PHOTO

4 October 2021

SINGAPORE (Reuters) – Southeast Asian ride-hailing and settlement company Grab said the Indonesian company awaits regulatory approval on Monday after doubling its stake in Indonesia’s electronic wallet OVO to more than 90% rice field.

Three sources with business knowledge told Reuters that Grab had bought shares in Indonesian conglomerate Lipo, which launched OVO and e-commerce platform Tokopedia.

Sinagupur-based Grab’s stake has now risen to 39%, marking the first phase of the restructuring, according to regulatory filings filed with Indonesian authorities.

“We welcome OVO’s greater commitment from Grab. We have worked closely with regulators to complete the ownership restructuring process,” OVO said in a statement.

OVO is one of the largest electronic wallet in Indonesia. As of 2019, it is worth $2.9 billion and has been downloaded over 100 million times.

Indonesia’s fast-growing digital economy is expected to grow to $124 billion by 2025, according to a 2020 survey by Google, Temasek Holdings, Bain & Co.

Half of the country’s 27 crore population does not have a bank account, but most now have mobile phones.

Tokopedia has completed its merger with Grab’s rival Gojek https://reut.rs/3a7pbv7 to form GoTo.

Gojek operates its own e-wallet GoPay.

The transaction is expected to pave the way for the Goto merger, as regulations require Indonesian companies to hold only one stake in an e-wallet at a time.

“This transaction has been planned for some time and we can continue to focus on advancing GoPay’s market-leading strategy,” Goto said in a statement.

Grab and Lipo declined to comment.

(Reporting by Fanny Potkin, edited by Martin Petty)

Acquire a majority stake in Indonesian e-wallet OVO

Source Link Acquire a majority stake in Indonesian e-wallet OVO

LEAVE A REPLY

Please enter your comment!
Please enter your name here