Gojek, Grab, Shopee Competitions in E-Commerce and Fintech are Tighter
Decacorn Singapore, Grab reportedly bought a 4% stake in the Indonesian media conglomerate PT Elang Mahkota Teknologi Tbk (Emtek).
This step is to tighten competition in the fields of e-commerce and financial technology (fintech) with Gojek and Tokopedia which are rumored to be merging, as well as the parent Shopee.
Emtek invests in Bukalapak. Most recently, this conglomerate was said to have led funding to Bukalapak together with Microsoft and Singapore’s GIC sovereign wealth fund of US$ 234 million or around IDR 3.4 trillion.
Emtek’s subsidiary, Kreatif Media Karya (KMK), sold 6% shares of Elang Andalan Nusantara (EAN) for IDR 76 billion on December 30, 2020. KMK’s ownership in EAN also fell from 55% to 49%.
This is stated in the disclosure of information on the fourth quarter of 2020 financial statements. EAN is a joint venture company between Emtek and Alibaba. Emtek’s grandchildren who run payment services include Doku and DANA.
Meanwhile, Grab controls 39.2% stake in parent OVO based on the DealStreetAsia report. Grab’s entry into Emtek is also considered to have tightened competition with Gojek and Sea Group in the e-commerce and fintech fields.
“Gojek merged with Tokopedia, so it can compete with Shopee in the e-commerce and online payment sub-industry. This step is also being taken by Grab,” said Indef Nailul Huda, a researcher at the Center of Innovation and Digital Economy, Friday (16/4).
If Grab does buy Emtek’s shares, then this Singaporean decacorn has access to e-commerce Bukalapak and Hijup. Bukalapak has more than 6.5 million online traders, as well as seven million shop partners and agents. Meanwhile, users reached 100 million.
Has Collaborated with Lazada
Grab is also working with Lazada. This Decacorn was said to be integrated with Lazada, because Alibaba plans to inject capital.
A Bloomberg source who is aware of the investment talks said Alibaba plans to integrate Grab’s delivery network service with Lazada. A number of investors in Southeast Asia assess that if the funding is realized, it will open doors for Lazada to new services.
Although there has been no confirmation regarding the investment news, Grab and Lazada have collaborated in Vietnam and Indonesia since the end of last year. OVO, which is supported by Grab, is also collaborating with e-commerce in this blue nuance.
On the one hand, Indofood boss Anthony Salim also controls 8.38% of Emtek shares. Meanwhile, the Salim Group invests in several e-commerce startups such as Lazada, Zalora, Elevenia, and iLotte.com.
In the fintech sector, the Salim Group owns iSaku and IndoAlliz Perkasa Sukses (Pede.id). Meanwhile, Emtek has a portfolio such as DANA and Doku. With Grab’s entry into Emtek, OVO and DANA are said to have the opportunity to merge.
Gojek Reportedly Getting Closer to Merger with Tokopedia
Meanwhile, Grab’s competitor, Gojek, is reportedly getting closer to merging with Tokopedia. Gojek owns the GoPay payment fintech, and invests in the insurance startup (insurtech) Pasarpolis.
Meanwhile, Tokopedia has shares in OVO. An executive who was involved in the merger discussion said that Tokopedia would sell its shares in OVO if it joined Gojek.
The unicorn with green nuances has also penetrated the fintech financing business (lending) through Dhanapala. Based on its official website, Dhanapala has distributed loans of IDR 89 billion to more than 7500 borrowers.
Apart from Tokopedia, the Gojek ecosystem is equipped with two e-commerce sites, namely JD.ID and Blibli. Merger and acquisition strategies are inseparable from the company’s desire to develop an ecosystem.
“This is inseparable from the characteristics of the digital economy which prioritizes the platform ecosystem to become number one,” said Nailul.
By strengthening this ecosystem, Gojek and Grab are competing with the Sea Group. This Singapore-based company has Shopee in the e-commerce sector.