Grab, a Singapore-based on-demand services company has boosted its position in top Indonesian e-wallet OVO by purchasing early investors’ shares.
Grab would increase its share in OVO from 39 percent to 90 percent as a result of the recent agreement. Lippo Group, Tokopedia, and Tokyo Century Corporation have all purchased shares in Grab.
The acquisition is still seeking regulatory approval.
Grab joined with Tokopedia, an Indonesian e-commerce behemoth, earlier this year to become 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.
OVO, which began as a rewards system within Lippo’s business environment, began accepting e-payments in 2017. It is currently one of Indonesia’s most popular e-wallets, with a market capitalization of $2.9 billion and almost 100 million downloads. In Indonesia, the e-wallet is approved in around 300 towns.
IDE Teknologi Indonesia now owns 5% of OVO, while local investment firm Cakra Finansindo Investama has an equal amount of shares.
Grab’s purchase of a majority share in OVO is expected to hit some roadblocks since it will need to find a local company to transfer the ownership. This is due to Bank Indonesia laws requiring a local resident or organisation to own 51% of an e-payment operator.
According to rumours in the media, Indonesian media and technology conglomerate Emtek might be interested in purchasing a share in the company. Grab paid US$274 million earlier this year for a 4% interest in Emtek.
