Grab to take majority stake in Indonesia e-wallet OVO

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SINGAPORE, Oct 4 (Reuters) – Southeast Asian ride-hailing and funds agency Grab will greater than double its stake in Indonesian e-wallet OVO to 90%, the Indonesian agency stated on Monday, pending approval from regulators.

Three sources with information of the deal instructed Reuters that Grab had bought the stakes of Indonesian conglomerate Lippo, which launched OVO, and e-commerce platform Tokopedia.

Sinagpore-based Grab’s stake will broaden from 39% at present, in keeping with a regulatory submitting submitted to Indonesian authorities, in what’s the first section of its restructuring.

“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 stated in a press release.

OVO is considered one of Indonesia’s greatest e-wallets. As of 2019, it was valued at $2.9 billion and had been downloaded greater than 100 million occasions.

Indonesia’s booming digital economic system is predicted to develop to $124 billion by 2025, in keeping with a 2020 research by Google, Temasek Holdings and Bain & Company.

Half of the nation’s inhabitants of 270 million lack financial institution accounts however most now have cell phones.

Tokopedia is finalising its own merger with Grab rival Gojek to type GoTo.

Gojek operates its personal e-wallet, GoPay.

As rules require Indonesian companies to personal stakes in just one e-wallet at a time, the deal is predicted to clear the best way for GoTo’s merger.

“This transaction has been planned for some time and will allow us to continue to focus on further deepening the market-leading strategy of GoPay,” GoTo stated in a press release.

Grab and Lippo declined to remark.

Reporting by Fanny Potkin; Editing by Martin Petty

A sign of OVO payment is seen at a mall in Jakarta, Indonesia, November 8, 2018. Picture taken November 8, 2018. REUTERS/Beawiharta/File Photo