Ride-hailing service Grab, which has diversified its business and includes Grab Financial Services, has reportedly led a $100 million Series B investment round in Indonesia-based e-money institution LinkAja.
LinkAja’s digital wallet and merchant services businesses are notably the flagship product of PT Fintek Karya Nusantara (Finarya), which operates as a division of PT Telekomunikasi Selular and several state-managed enterprises, such as PT Bank Rakyat Indonesia, PT Bank Negara Indonesia, and PT Bank Mandiri.
LinkAja’s services are mainly intended for middle-class families and workers. The digital wallet platform is also being widely used by SMEs based in Indonesia. Launched in June 2019, LinkAja has already acquired over 58 million registered users.
The latest investment round into LinkAja’s operations also includes contributions from Telkomsel, BRI Ventura Investama, and Mandiri Capital Indonesia.
Grab’s management noted that the investment is a great opportunity for it to offer its financial services and supporting ecosystem to the cash-dependent Indonesian market.
Neneng Goenadi, MD at Grab Indonesia, stated:
“Cash is still king in Indonesia, and there are millions of Indonesians who remain invisible to traditional banking systems.”
“We chose to invest in LinkAja because we believe that together we can help accelerate our shared goal of improving financial inclusion in Indonesia. The strategic collaboration between LinkAja and our ecosystem which includes partners like OVO and Tokopedia will allow us to bring cashless services to all Indonesians in a way that is trusted, convenient and accessible.”
The latest investment by the ride-hailing service provider has come at a time when the company is planning to launch a 12,000 square meter Tech Center in Indonesia, which will serve as a local innovation hub for Grab.
As reported recently, major Singapore based Telecommunications firm Singtel and Grab are getting closer to launching a digital bank.
As covered in August 2020, Grab Financial Group has introduced a micro investment platform and Buy Now, Pay Later options for digital commerce sites.