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Kul Bhushan · · 1 min readLeading Indonesian bank to pump $200m in digital unit to keep Gojek, Sea at bay
“Indonesia’s Bank Central Asia (BCA) will invest US$200 million in its digital arm to fend off competition from tech giants Gojek and Sea, which are expanding into one of the world’s largest unbanked markets,” Bloomberg reported.
Details:
- As BCA prepares for an initial public offering in the next couple of years, it plans to help digital unit Blu increase its market share.
- The lender is also focusing on acquiring more merchants, partners, and customers for Blu. After making its stock market debut, BCA is looking to keep the majority stake in its digital arm.
Dive deeper:
- The bank aims to expand Blu’s capital to 4 trillion rupiah (US$277 million) from 1 trillion rupiah (US$69 million).
- BCA is facing a strong competition from smaller digital banks like Gojek and GIC-backed Bank Jago, whose market value has grown exponentially in the recent months. (Read: Why Indonesia’s tech giants find digital banks irresistible)
Editing by Collin Furtado and Eileen C. Ang
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