Grab Reportedly Eyeing to Merge OVO and Dana in a Bid to Compete with Gojekby Fintechnews Indonesia September 11, 2019
Ride-hailing giant and super-app aspirant Grab is rumoured to be in talks to merge Indonesian digital payments firm OVO with DANA in which Grab is eyeing to acquire a majority interest in.
Currently, Grab already own shares in OVO and the company is reportedly looking to acquire shares in DANA from Indonesian media conglomerate Emtek.
Grab’s exact stake in OVO is uncertain, but reports from Reuters indicate that the stake is sizeable, while Emtek currently owns over 50% of the company that owns DANA, which was formed in 2017 through a tie-up with Ant Financial.
Both OVO and Go-Jek have been fiercely competing for the top spot in Indonesia’s digital payments market. If the deal goes through it puts Grab’s newly merged entity in a good footing to overtake Go-Jek in their own home turf within the digital payments space
The same report also indicates that Grab’s major investor, SoftBank is in favor of the deal.
This news follows Grab’s announcement that it will invest US$2 billion into Indonesia over a period of five years with the capital invested by SoftBank.
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