Minor Gojek, Grab investors head for the exit amid worsening economy

As Southeast Asia’s tech unicorns Grab and Gojek reach ever-higher valuations, investors have been looking to cash out.

Since last year, minor as well as early investors in these two firms have been trying to off-load their stakes, sometimes at deep discounts, multiple people keeping track of the private secondary market tell Tech in Asia.

Illustration: Centaine Lim

Some exceptions aside, Gojek’s shares tend to be priced at a larger discount on the valuation compared to Grab, according to our analysis of data from six sources who are privy to the secondary market.

While discounts on individual trades can be affected by perceptions of an organization’s performance, that is by no means the only factor, observes a broker who deals in both companies’ shares. He adds that Grab is known to keep a tight rein on its secondary share prices.

The trading activity is set to accelerate. Investors are feeling jittery as the global market sees its worst free fall since the 2008 global financial crisis. More sellers in the secondary market are now competing for a limited pool of buyers and driving down share prices, a source notes.

Now might be a good time for investors to sell at least a portion of their shares – Grab and Gojek are currently worth billions, which means early backers stand to make a lucrative return even at a big discount.

Not wavering

Gojek’s most powerful shareholders, however, are standing their ground. “Nobody who’s of any importance and holds any decent number of shares has sold or is looking to sell,” says a prominent investor in the firm who wishes to remain unnamed.

Some of them have also reinvested in the company through its recently announced US$1.2 billion round, insiders close to the company say. One firm, which was an early backer of the super app, tells Tech in Asia that it hasn’t sold its shares and isn’t planning to.

Gojek’s and Grab’s biggest investors, of course, have a pragmatic reason to hold the equity: Because they came in at higher valuations, a discounted sale would be unattractive or even loss-making.

Photo credit: Tech in Asia Indonesia

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