Singapore-based on-demand services giant Grab has increased its stake in leading Indonesian e-wallet OVO by buying out the shares of its early investors.
With the latest deal, Grab will more than double its stake in OVO to 90 per cent from the current 39 per cent. Grab has bought shares from Lippo Group, Tokopedia, and Tokyo Century Corporation.
The deal is awaiting approval from the regulators.
Grab had merged with Indonesian e-commerce giant Tokopedia earlier this year to form GoTo.
“We welcome a greater commitment from Grab in OVO. We’re working in close consultation with the regulators to complete the ownership restructuring process,” OVO said in a statement.
Started as Lippo’s rewards system within its corporate ecosystem, OVO launched e-payments in 2017. It is now one of Indonesia’s leading e-wallet with about US$2.9 billion in valuation and nearly 100 million downloads. The e-wallet is accepted in more than 300 cities across Indonesia.
Also Read: Grab acquires US$274M-worth stake in Emtek, fuels talks of OVO-DANA merger: Report
As it stands, 5 per cent of OVO is owned by IDE Teknologi Indonesia, while local investment firm Cakra Finansindo Investama holds an equal number of shares.
Grab’s acquisition of a majority stake in OVO will likely face many bumps ahead as the Singaporean firm will have to find a local entity to transfer this stake. This is because the central bank Bank Indonesia’s rules stipulate that 51 per cent of an e-payment operator needs to be held by a local citizen or entity.
As per various media reports, Indonesian media and technology conglomerate Emtek may be a candidate to buy such a stake. Earlier this year, Grab had acquired a 4 per cent stake in Emtek for US$274 million.
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Image Credit: OVO
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