Ovo’s throne in jeopardy as GoTo ramps up pressure – The Executive Brief

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Hello reader,

Don’t put all your eggs in one basket. We’ve heard the saying countless times before – teachers and parents always have it handy. The idiom’s origin is believed to be from Miguel Cervantes’ Don Quixote from the early 1600s.

More than four centuries later, the phrase is still relevant in society as a quick and easy way to dole out good advice. Ovo would agree. The Indonesian e-wallet has appeared to steadfastly implement this simple yet wise strategy.

Despite counting Tokopedia, one of Indonesia’s top ecommerce platforms, as its biggest driver of transactions, Ovo has cleverly cushioned any drop-off in business due to the merger of Tokopedia and Gojek to form GoTo Group. Ovo has reduced its dependence on Tokopedia by inking partnerships with other marketplaces, including Blibli, Zalora, and Lazada.

However, with Gojek’s solutions, such as GoPay, now hogging the limelight on Tokopedia’s platform, my colleague Jofie Yordan dives in deep to figure out if Ovo can preserve its status as Indonesia’s top e-wallet and if it really even matters, given that financial services are the monetization endgame for e-wallets.

Today we look at:

• Ovo’s prospects of keeping its crown in Indonesia in light of GoTo’s rise
• Scaler’s quest to become India’s next edtech unicorn
• Other newsy highlights such as Sony joining the gaming industry’s deal mania and the funding frenzy in Southeast Asia

Also, if you’re an entrepreneur looking for funding, fill out this form to get your company featured on our list of fundraising startups.

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In it for the long haul

Image credit: Timmy Loen

It is worth noting that Ovo does not have to fend off competition from GoTo Group on its own as the former counts Grab as a majority stakeholder. The Singapore-based super app bought a majority stake in Ovo from Tokopedia and Lippo Group last year.

This ensures that, despite the immediate threat from GoTo Group, Ovo has the resources to secure a spot among Indonesia’s top e-wallets in the long term.

“E-wallet or mobile payments will not be a winner-takes-all market, and regulators will not let that happen,” Vion Yau, head of insights at research firm Momentum Works, explains. “Even in China, WeChat Pay and Alipay will not completely defeat each other because of their parents’ use cases.”

Entering soonicorn territory