Grab buys majority stake in Ovo from Tokopedia, Lippo Group

Details:

• Grab has increased its stake in Ovo’s parent firm, Bumi Cakrawala Perkasa, from an earlier 39% as part of the ride-hailing giant’s plans to expand its services further into Indonesia’s financial services sector.
• However, Grab is also reportedly in talks with Indonesian investors to sell part of its stake in the Indonesian mobile wallet in a bid to comply with local regulations.

Dive deeper:

• While Gojek and Tokopedia have formally combined, there are still overlaps between their services. Tokopedia still uses Ovo – a competitor to Gojek’s GoPay – as its primary payment method. (Read: Overlap in Gojek and Tokopedia services suggests possible redundancy)
• The increase in its stake in Ovo comes as Grab looks to compete with GoTo Group, which has a strong nationalist narrative. In July, Emtek pumped a total of US$375 million into Grab’s Indonesian unit, helping the ride-hailing giant stay competitive in Southeast Asia’s biggest market. (Read: Grab sees sudden spurt of Indonesian investors, but why?)