Indonesian online payment startup Kudo might be bought by Grab, Reuters sourced. It was reported that the transaction might be set for over $100 million, in a move to help the Uber competitor roll out its services to more customers.
Reuter’s source states that the information is not public, and the person claimed that this deal will be funded from the $700 million investment promise by Grab into Indonesia, Grab’s largest market.
Kudo is a recent startup that helps facilitates online transactions for Indonesian customers. The company was founded in 2014 and caters for consumers in small towns and cities with no bank accounts, helping them make purchases online through its agents.
Reuters reported that last year, Grab teamed up with Indonesian conglomerate Lippo Group to roll out a mobile payment platform. That partnership enables customers to use the Grab app to make payments at Lippo’s retail outlets across the country.
According to Reuters, “Grab, co-founded by Harvard Business School graduate Anthony Tan, raised $750 million in a funding round last September, more than a month after its Indonesian rival, Go-Jek, received $550 million from investors including KKR and Warburg Pincus.”
Within South East Asia, Grab is a major rival of Uber and another local ride hailing firm Go-Jek. Reuters speculated that the deal will be announced as early as this week.
In Malaysia, Grab will be launching a new service this Thursday.
This story was originally sourced by Reuters. More updates to follow.
