Go-Jek buys majority stake in Coins.ph for $72m

Go-Jek’s ambitions to launch its ride-hailing services in the Philippines have hit a snag. But that hasn’t stopped it from pursuing its wider ambitions in the archipelago.

The Indonesian ride-hailing company said today it’s “making a substantial acquisition of shares” in Manila-based fintech startup Coins.ph. A source familiar with the transaction told Tech in Asia that Go-Jek acquired a majority stake in the Filipino firm.

TechCrunch reports that the deal is worth US$72 million.

“Today’s announcement marks the start of our long-term commitment to the Philippines,” said Go-Jek co-founder and CEO Nadiem Makarim.

The Coins team / Photo credit: Coins.ph

The investment is part of a broader strategic partnership between Go-Pay, Go-Jek’s payment unit, and Coins to drive more adoption of cashless payment solutions in the Philippines.

Coins’ mobile wallet allows users to send, receive, and withdraw money without the need for a bank account – something that many Filipinos lack, with over three-quarters of the population unbanked as of 2017, according to the Bangko Sentral ng Pilipinas (the country’s central bank). Users can withdraw cash from their wallets by visiting one of Coins’ offline partners such as local mom-and-pop stores, pawn shops, or even other users.

The platform also allows users to purchase mobile data and airtime, pay bills, and buy and store cryptocurrencies, including Bitcoin, Bitcoin Cash, and Ether.

According to a statement, Coins serves over 5 million customers and processes more than 6 million transactions per month.

Prior to today’s announcement, the Philippine firm had raised close to US$10 million in venture funding from investors including Naspers, Wavemaker Partners, and Quona Capital’s Accion Frontier Inclusion Fund.

Go-Jek indicated it would enter the Philippines as part of the US$500 million regional expansion plan it announced last May. It has since launched ride-hailing services in Singapore and Thailand, in addition to ride-hailing and food-delivery offerings in Vietnam.

However, the company’s application for a Philippine transport network operator license was rejected earlier this month, reportedly because it failed to comply with regulations regarding foreign ownership. Go-Jek is allowed to appeal the decision, and said it would continue to engage with Philippine regulators.