Southeast Asia’s ride-hailing giants Grab and Gojek are reportedly discussing a potential merger, according to media reports.
If the potential merger between Grab and Gojek successfully takes place, it will create one of the most highly-valued startups globally. Currently, Grab is valued at around $14 billion and Gojek, on the other hand, is valued at around $9 billion.
Reportedly, Gojek wants a 50 percent stake in the merged entity; however, Grab wants to hold a controlling stake. The management of both firms held numerous meetings over the last years. Also, recently Grab President Ming Maa and Gojek chief executive Andre Soelistyo held a meeting with regard to the potential merger.
However, responding to a media inquiry, a Gojek spokesperson said there are no such plans as of yet and the recent media reports regarding discussions of a potential merger with Grab are not accurate.
Gojek, which is headquartered in Indonesia and Singapore-based Grab, has been waging a price war against each other since last year when it comes to ride-hailing and food delivery sectors.
Gojek, which was founded in 2010, has raised a total of over $3 billion in 12 separate funding rounds. Reportedly, the company is also planning to raise another $2.5 billion in a fresh round of funding. Its list of investors includes Google, JD.com and Tencent, Mitsubishi and Provident Capital.
Grab, on the other hand, has raised around $9 billion in 29 separate funding rounds. Grab’s list of investors includes Toyota, MUFG, Microsoft, Ping An, Hyundai, and Yamaha motors.
According to recent media reports, Japan’s MUFG Bank will invest around $727 million in Grab. Both parties will jointly develop financial services products and it will be available through Grab’s mobile app.